You didn't receive a raise in 2023, but you may have noticed that you're receiving a slightly different amount of money in your paycheck. The IRS increased 2024 tax brackets, which could translate into more money on payday for some folks.
Both federal income tax brackets and the standard deduction were raised for 2024. The higher amounts will apply to your 2024 taxes, which you'll file in 2025.
This story is part of Taxes 2024, CNET's coverage of the best tax software, tax tips and everything else you need to file your return and track your refund.
It's normal for the IRS to make tax code changes each year to account for inflation. This also helps prevent "tax bracket creep," which could push you into a higher tax bracket, despite inflation eating into your wages. So, even if you make more money in 2024, factoring inflation into the tax code could prevent you from being pushed into a higher tax bracket -- and may even bring you down to a lower bracket and bump up your take-home pay. Here's why.
For more on taxes, here are our picks for the best tax software for 2024, what you need to know about tax filing deadlines this yearand when you can expect to receive your child tax credit money.
How tax code changes affect your paycheck
When the IRS raises federal income tax brackets, you might fall into a lower tax bracket than you did the year before -- particularly if your income has stayed the same.
For example, if you made $45,000 in 2023, you would have fallen into the 22% tax bracket for that tax year. But if your income remains at $45,000 in 2024, you'll drop down to the 12% bracket. That means you'll be on the hook for less federal tax next year and will have less money withdrawn from your paycheck.
If you make more in 2024 than you did in 2023, the amount your pay has increased will determine where you fall. It's possible you'll still fall into a lower tax bracket, based on the new changes. But you may remain in the same bracket or move up to a higher one.
In either scenario, it's important to understand that since inflation is still lingering, you're likely feeling the sting of high prices in different ways. So, even if you drop into a lower tax bracket and take home a slightly bigger paycheck next year, it's likely inflation is already eating into the amount you pay for housing, gas, food or other essentials.
2024 income tax brackets
Your federal income tax bracket helps determine how much you'll pay in taxes for a given tax year, excluding the standard deduction or any itemized tax deductions.
2024 income tax brackets for single filers:
| Taxable income | Federal tax rate |
|---|---|
| $11,600 or less | 10% |
| $11,601 - $47,150 | $1,160 plus 12% of income over $11,600 |
| $47,151 - $100,525 | $5,426 plus 22% of income over $47,150 |
| $100,526 - $191,950 | $17,168.50 plus 24% of income over $100,525 |
| $191,951 - $243,725 | $39,110.50 plus 32% of income over $191,950 |
| $243,726 - $609,350 | $55,678.50 plus 35% of income over $243,725 |
| $609,351 or more | $183,647.25 plus 37% of income over $609,350 |
2024 income tax brackets for filers who are married, filing jointly:
| Taxable income | Federal tax rate |
|---|---|
| $23,200 or less | 10% |
| $23,201 - $94,300 | $2,320 plus 12% of income over $23,200 |
| $94,301 - $201,050 | $10,852 plus 22% of income over $94,300 |
| $201,051 - $383,900 | $34,227 plus 24% of income over $201,050 |
| $383,901 - $487,450 | $78,221 plus 32% of income over $383,900 |
| $487,451 - $731,200 | $111,357 plus 35% of income over $487,450 |
| $731,201 or more | $196,669.50 plus 37% of income over $731,200 |
2024 income tax brackets for head of household filers:
| Taxable income | Federal tax rate |
|---|---|
| $16,550 or less | 10% |
| $16,551 - $63,100 | $1,655 plus 12% of income over $16,550 |
| $63,101 - $100,500 | $7,241 plus 22% of income over $63,100 |
| $100,501 - $191,950 | $15,469 plus 24% of income over $100,500 |
| $191,951 - $243,700 | $37,417 plus 32% of income over $191,150 |
| $243,701 - $609,350 | $53,977 plus 35% of income over $243,700 |
| $609,351 or more | $181,954.50 plus 37% of income over $609,350 |
2024 standard deduction
For 2024, the standard tax deduction for single filers has been raised to $14,600, a $750 increase from 2023. For those married and filing jointly, the standard deduction has been raised to $29,200, up $1,500 from the previous year.
| Filing status | 2023 | 2024 |
|---|---|---|
| Single or married, filing separately | $13,850 | $14,600 |
| Married, filing jointly | $27,700 | $29,200 |
| Head of household | $20,800 | $21,900 |
Source for all charts:IRS (PDF).
Most taxpayers with simple tax returns claim the standard deduction, which reduces their taxable income. If you receive your wages solely from an employer as a W-2 employee, the standard deduction is usually the best way to maximize your tax refund. If you're self-employed or have specific deductions you'd like to claim, you'll itemize your deductions instead.
Other 2024 tax changes that may help you
There are other tax changes happening next year that could put more money in your paycheck. If you collect Social Security, you'll receive a 3.2% cost-of-living-adjustment in 2024. And since the first of January falls on a holiday, you can expect to receive your first increased SSI payment at the end of December.
The IRS also announced a series of other increases to popular tax credits and deductions for 2024, including a higher maximum for the Earned Income Tax Credit, adjustments to the gift tax exclusion and an increase to the foreign earned income exclusion.
We'll keep you updated as new tax changes are announced.
