In 2024, the federal income tax rates and brackets include 10%, 12%, 22%, 24%, 32%, 35% and 37 percent. Your ability to deduct taxes depends on two factors among which are your taxable income and filing status.
The Tax Cuts and Jobs Act of 2017 United States federal tax rates will stay unchanged until 2025. Nevertheless, income thresholds used to determine these tax brackets may be adjusted every year by the Internal Revenue Service to accommodate the rising rate of inflation.
2024 tax brackets and income tax rates
In 2024, there will be seven income tax rates, from 10% to 37%. For each filing status, the tax brackets that indicate how much of a person’s taxable income is subject to a certain rate are 5.4% higher than in 2023. This could lead to lower taxes for people who have not experienced any income growth since last year.
Tax brackets for 2024 (due in April 2025)
The tax brackets for 2024 refer to income obtained within the same year, whose details are documented in tax returns lodged between January 1 and December 31, 2025.
| Tax rate | Single | Married filing jointly | Married filing separately | Head of household |
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $11,600 | $0 to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,725 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 | $243,701 to $609,350 |
| 37% | $609,351 or more | $731,201 or more | $365,601 or more | $609,350 or more |
2023 tax brackets and income tax rates
The following tax tables depict the rates and brackets that were applicable for income earned during the year 2023. Most taxable returns for 2023 were due on April 15, 2024. If you got an extension on tax day, then your new federal filing date would be October 15, 2024; however, if a tax bill is due, you should pay it as soon as you can to minimize fines and interest.
Tax brackets 2023
| Tax rate | Single | Married filing jointly | Married filing separately | Head of household |
| 10% | $0 to $11,000 | $0 to $22,000 | $0 to $11,000 | $0 to $15,700 |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $11,001 to $44,725 | $15,701 to $59,850 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 | $44,726 to $95,375 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 | $95,376 to $182,100 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $346,875 | $231,251 to $578,100 |
| 37% | $578,126 or more | $693,751 or more | $346,876 or more | $578,101 or more |
What are income tax brackets?
A system of taxation that progresses in the US bases taxation on income for the rich is higher than that of the poor, hence making them pay lower tax rates and vice versa. The amount owed as tax is calculated by the government by dividing taxable income into segments also addressed as tax brackets, with each segment billed at a similar taxation rate, which can be anything ranging from 10% to 37%.
The advantage of personal tax brackets is that regardless of what bracket(s) one belongs to, they will typically not pay such a rate on their total earnings. This means that only part of your salary is subject to the highest tax rate and not all of it.
How do tax brackets and rates work on the state level?
Unlike the federal government, states may deal with taxes differently. Your state might have different tax brackets, or it could use an entirely different system. For instance, Colorado has a uniform rate of 4.4% for taxable income.
Are income tax brackets adjusted?
Every year, all Federal Tax Bands are updated according to inflation system rates; i.e., income ranges that regulate specific rates of imposed tax are moved forward in time. Formally known as inflation adjustments, these minor changes are essential components of the tax code.
They prevent taxpayers from slipping into higher tax brackets as their cost of living rises (a situation referred to as bracket creep). As such, they do not only save on taxes for individuals whose salaries have been lagging behind inflation but also minimize bracket escalation scenarios.
What is a marginal tax rate?
On the final dollar in taxable income, the marginal tax rate is what one pays. Normally, it equals the most elevated taxation layer you have.
To illustrate, if you are a single taxpayer in 2023 with a taxable income of $35,000, certain parts of your earnings will attract a 10% levy while others will be subject to 12%. The moment your taxable earnings increase by one dollar, you will also part with an additional 12% on that as well.
What is an effective tax rate?
The effective tax rate is the amount of taxes that you pay as a percent of taxable income. Thus, to find out your effective tax rate, first take line 24 in Form 1040, which shows the total tax owed, and divide it with line 15 in the same form showing total taxable income.
How to reduce taxes owed
below we will discuss how to reduce the taxes owed
Tax credits and deductions are two usual ways to lessen your payable taxes.
In other words, tax credits directly diminish one’s tax bill; they do not affect the bracket.
In contrast, while deductions determine taxable income by reducing how much of it is subjected to taxes at all—with the greatest deductions from the highest federal income tax brackets—if you belong to the 22 percent bracket, for example, a thousand dollars in the form of a deduction means that you will save two hundred and twenty dollars.
Tax-wise speaking, claim every deduction you can. This way people may find themselves in lower brackets, thus being taxed at lower rates than they should have been had it not been for such deductions.
