2024 federal income tax brackets — how much will you pay? (2024)

The IRS has unveiled its annual inflation adjustments for the 2024 tax year, featuring a slight uptick in income thresholds for each bracket compared to 2023.

Your taxable income and filing status determine both the tax rate and bracket that apply to you, outlining the amount you'll owe on different portions of your income.

For 2024, the seven federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%.

Below, CNBC Select breaks down the updated tax brackets for 2024 and what you need to know about them.

What we'll cover

  • 2024 tax brackets (for taxes filed in 2025)
  • 2023 tax brackets (for taxes filed in 2024)
  • What is a marginal tax rate?
  • What is an effective tax rate?
  • How do you reduce the amount of taxes you owe?
  • Bottom line

2024 tax brackets (for taxes filed in 2025)

The tax inflation adjustments for 2024 rose by 5.4% from 2023 (which is slightly lower than the 7.1% increase the 2023 tax year had over the 2022 rates).

In 2024, the top tax rate of 37% applies to those earning over $609,350 for individual single filers, up from $578,125 last year. Meanwhile, the lowest threshold of 10% applies to those making $11,600 or less, up from $11,000 in 2023.

That means how much you pay in taxes could be higher or lower this year than in 2023. For example, let's say you earned $45,000 in taxable income as a single filer in 2023. How your income is taxed gets broken down into three tax brackets:

  • 10% for the first $11,000 of your income — which comes down to $1,100
  • 12% for any income between $11,001 to $44,725 ($33,724) — which comes down to $4,046.88
  • 22% for the remaining income between $44,726 to 95,375 ($274) — which comes down to $60.28
  • This adds up to $5,207.16 in taxes for the 2023 calendar year.

Now, let's say you're earning $45,000 in 2024. Your tax bracket will look a little different.

  • 10% for the first $11,600 of your income — which comes down to $1,160
  • 12% for any income between $11,601 to $47,150 ($33,399) — which comes down to $4,007.88
  • This adds up to $5,167.88 in taxes for the 2024 calendar year.

That's about $40 less in taxes in 2024 than in 2023.

Below, are the brackets and rates that apply to income earned in 2024.

2024 Tax Brackets (Taxes Due 2025)

Tax Rate Single Married filing jointly Married filing separately Head of household
10%$11,600 or less $23,200 or less $11,600 or less $16,550 or less
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 $234,701 to $609,350
37%Over $609,350 Over $731,200 Over $365,600 Over $609,350

2023 tax brackets (for taxes filed in 2024)

Taxes for the 2024 year are due by April 15, 2024, or October 2024 with a tax extension. If you prefer to file without the help of a tax professional, TurboTax and topped CNBC Select's list of top tax software based on cost, user experience, the amount of expertise available to customers, and Better Business Bureau rating.

TurboTax

On TurboTax's secure site

  • Cost

    Costs may vary depending on the plan selected - click "Learn More" for details

  • Free version

    TurboTax Free Edition. ~37% of taxpayers qualify. Form 1040 + limited credits only.

  • Mobile app

    Yes

  • Live support

    Available with some pricing and filing options

Click here for TurboTax offer details and disclosures. Terms apply.

Learn More

On H&R Block's secure site

  • Cost

    Costs may vary depending on the plan selected (Free Online, Deluxe, Premium, or Self-Employed) - click "Learn More" for details

  • Free version

    Yes (for simple returns only)

  • Mobile app

    Yes

  • Live support

    Available with some pricing and filing options

Terms apply.

Below, are the brackets and rates that apply to taxable income earned in 2023.

2023 Tax Brackets (Taxes Due 2024)

Tax Rate Single Married filing jointly Married filing separately Head of household
10%$11,000 or less$22,000 or less$11,000 or less$15,700 or less
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%Over $578,125Over $693,750Over $346,875Over $578,100

Source: IRS.gov

What is a marginal tax rate?

Your marginal tax rate is the highest tax rate you pay on your income. Because the IRS taxes different tiers of your income at progressive rates, you'll never pay a single rate on all of your income.

For example, if you're a single filer who earned $70,000 in income in 2023, your marginal tax rate is 22% because you earned income that falls within the $44,276 to $95,375 tax bracket. But only $25,724 of your income ($70,000 - $44,27) is taxed at 22%. The taxable income you earned from $11,001 to $44,725 is taxed at 12%, and the income you earned up to $11,000 is taxed at 10%.

What is an effective tax rate?

Effective tax rate refers to the average percentage of your taxable income that you owe in federal taxes. To calculate this amount, you divide how much you owe by your total taxable income.

Here's how this looks using the example of a single filer with $70,000 of taxable income:

  • 10% for the first $11,000 of their income, or $1,100.
  • 12% for any income between $11,001 to $44,725, or $4,046.88.
  • 22% for any income between $44,726 and $70,000, or $5,560.28.

This adds up to $10,707.16 worth of taxes owed. When you divide that by $70,000 (the total taxable income), you get an effective tax rate of 15.29%.

How do you reduce the amount of taxes you owe?

If you want to reduce how much you owe in taxes, you can start by looking at any available tax credits you can claim. Tax credits offer a direct reduction in the amount of taxes you owe, providing a dollar-for-dollar decrease in your tax liability. So, for example, if you owe $2,000 in taxes and qualify for a $500 tax credit, your tax liability gets reduced to $1,500. You can find details on tax credit options on the IRS website, including:

  • The Earned Income Tax Credit
  • Child Tax Credit and Child and Dependent Care Tax Credit
  • American Opportunity Tax Credit

While tax credits directly reduce your tax bill, tax deductions lower your taxable income by letting you subtract certain expenses or contributions from what the IRS can tax. These deductions can take the form of a standard deduction — a fixed amount reduction — or an itemized deduction — which entails listing eligible expenses. Deductions are based on expenses such as mortgage interest, charitable contributions or educational expenses.

For example, if you have student loans, qualified borrowers can deduct interest that they paid on those loans. You can also claim deductions for money contributed to a qualifying pre-tax retirement account, such as an employer-sponsored401(k) or traditional IRA. However, you'll be subject to income tax on your withdrawals.

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Bottom line

As the IRS releases 2024's tax inflation adjustments, it's a good opportunity to proactively plan for how much you could owe in 2025. If you find that you'll owe less, that gives you space to allocate your funds elsewhere. More information about the update can be found on theIRS.govwebsite.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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2024 federal income tax brackets — how much will you pay? (2024)

FAQs

2024 federal income tax brackets — how much will you pay? ›

To calculate your federal quarterly estimated tax payments, you must estimate your adjusted gross income, taxable income, taxes, deductions, and credits for the calendar year 2024. Form 1040-ES includes an Estimated Tax Worksheet to help you calculate your federal estimated tax payments.

What will be the tax brackets for 2024? ›

2024 Tax Brackets (Taxes Due 2025)
Tax RateSingleMarried filing jointly
10%$11,600 or less$23,200 or less
12%$11,601 to $47,150$23,201 to $94,300
22%$47,151 to $100,525$94,301 to $201,050
24%$100,526 to $191,950$201,051 to $383,900
3 more rows
Apr 9, 2024

How to figure estimated taxes for 2024? ›

To calculate your federal quarterly estimated tax payments, you must estimate your adjusted gross income, taxable income, taxes, deductions, and credits for the calendar year 2024. Form 1040-ES includes an Estimated Tax Worksheet to help you calculate your federal estimated tax payments.

How do you calculate how much federal tax you should pay? ›

How Income Taxes Are Calculated
  1. First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
  2. Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income.
Jan 1, 2024

What is the standard tax deduction for 2024? ›

In 2024, the standard deduction is $14,600 for single filers and those married filing separately, $29,200 for those married filing jointly, and $21,900 for heads of household. The 2024 standard deduction applies to tax returns filed in 2025.

What are the new tax changes for 2024? ›

Key provisions in the Tax Relief for American Families and Workers Act of 2024. The bill provides for increases in the child tax credit, delays the requirement to deduct research and experimentation expenditures over a five-year period, extends 100% bonus depreciation through 2025, and increases the Code Sec.

Did federal withholding change for 2024? ›

Your new year paycheck might have different withholding amounts for federal taxes. Effective Jan 1 2024, IRS has updated the federal tax brackets. The rates remain at 0%, 10%, 12%, 22%, 24%, 32%, 35%, or 37% but the ranges have been adjusted for inflation.

How do I calculate estimated taxes for next year? ›

To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year. When figuring your estimated tax for the current year, it may be helpful to use your income, deductions, and credits for the prior year as a starting point.

What is the 110% rule for estimated tax payments? ›

If your previous year's adjusted gross income was more than $150,000 (or $75,000 for those who are married and filing separate returns last year), you will have to pay in 110 percent of your previous year's taxes to satisfy the "safe-harbor" requirement.

What is the formula for estimated tax? ›

How to calculate estimated taxes. To calculate your estimated taxes, you will add up your total tax liability for the current year—including self-employment tax, individual income tax, and any other taxes—and divide that number by four.

How much federal tax should I pay on $50,000 married filing jointly? ›

Federal Income Tax Rates
Tax RateMarried Filing Jointly or Qualified Surviving SpouseSingle
12%$23,200 - $94,300$11,600 - $47,150
22%$94,300 - $201,050$47,150 - $100,525
24%$201,050 - $383,900$100,525 - $191,950
32%$383,900 - $487,450$191,950 - $243,725
4 more rows

What percentage should you pay in federal taxes? ›

2024 Federal Tax Brackets
RateSingleMarried Filing Jointly
10%$0 – $11,600$0 – $23,200
12%$11,600 – $47,150$23,200 – $94,300
22%$47,150 – $100,525$94,300 – $201,050
24%$100,525 – $191,950$201,050 – $383,900
3 more rows
Dec 16, 2023

Why do I owe so much in taxes in 2024? ›

As the 2024 tax deadline approaches, you may be in the position of expecting to owe money to the IRS. This may be the case if you made over $20,000 from a side hustle in 2023, you earn self-employment income (such as through a freelance gig), or you entered a new tax bracket.

At what age is Social Security no longer taxed? ›

Social Security can potentially be subject to tax regardless of your age. While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

Are tax brackets based on gross income? ›

Tax brackets and marginal tax rates are based on taxable income, not gross income.

Will standard deduction change in 2024? ›

For single taxpayers, the standard deduction rose to $14,600, a $750 increase from the previous year. Heads of households, or unmarried taxpayers who have dependents and pay for more the half of the expenses of a household, can take a standard deduction of $21,900 in 2024, an increase of $1,100 from 2023.

What will the tax bracket be after 2025? ›

Other tax brackets will move higher after Dec. 31, 2025 as well, including: The current 12% rate rising to 15% The current 22% rate rising to 25%

What will the tax bracket increase to in 2026? ›

The TCJA decreased the tax rates and changed the brackets to which those rates applied. Under the TCJA, the tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. On January 1, 2026, the rates return to their pre-TCJA amounts of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.

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