Just Released 2024 New Tax Brackets:

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Just Released 2024 New Tax Brackets:
Re: https://www.kiplinger.com/taxes/new-...x-brackets-set

Here are the inflation-adjusted tax brackets for 2024. (Note: These brackets apply to federal income tax returns you would normally file in early 2025.) It's also essential to keep in mind that the associated tax rates remain the same (currently 10%, 12%, 22%, 24%, 32%, 35%, and 37%).

For information on the current federal tax brackets, see: 2023 Federal Tax Brackets and Income Tax Rates

Just Released 2024 Tax Brackets: Single Filers and Married Couples Filing Jointly
Tax Rate Taxable Income (Single) Taxable Income (Married Filing Jointly)
10% Not over $11,600 Not over $23,200
12% Over $11,600 but not over $47,150 Over $23,200 but not over $94,300
22% Over $47,150 but not over $100,525 Over $94,300 but not over $201,050
24% Over $100,525 but not over $191,950 Over $201,050 but not over $383,900
32% Over $191,950 but not over $243,725 Over $383,900 but not over $487,450
35% Over $243,725 but not over $609,350 Over $487,450 but not over $731,200
37% Over $609,350 Over $731,200

or;

Just Released 2024 Tax Brackets: Married Couples Filing Separately and Head of Household Filers

ax Rate Taxable Income (Married Filing Separately) Taxable Income (Head of Household))
10% Up to $11,600 Not over $16,550
12% Over $11,600 but not over $47,150 Over $16,550 but not over $63,100
22% Over $47,150 but not over $100,525 Over $63,100 but not over $100,500
24% Over $100,525 but not over $191,950 Over $100,500 but not over $191,950
32% Over $191,950 but not over $243,725 Over $191,950 but not over $243,700
35% Over $243,725 but not over $365,600 Over $243,700 but not over $609,350
37% Over $365,600 Over $609,350

It's also important to note that these income tax rates are marginal, meaning they only apply to the income within the relevant tax bracket range for your filing status.

For example, just because a married couple files a joint return with $100,000 of taxable income in 2024 and their total taxable income falls within the 22% bracket for joint filers, it doesn't mean they will pay $22,000 in tax. The 22% rate isn’t applied as a flat rate on the entire $100,000.

Instead, the 2024 tax brackets are tied to marginal tax rates. This means that the first $22,000 of income is taxed at a rate of 10%. The next portion of income, which is the amount between $22,000 and $89,450, is taxed at a rate of 12%. Finally, only the income exceeding $89,450 is taxed at a rate of 22%.

Note: For more examples and information on how tax brackets work, see Kiplinger's guide on Federal Income Tax Brackets and Rates.

Do tax brackets go up with inflation?

One of the tax effects of high inflation is that it impacts the tax bracket ranges. This can be seen in the "width" of the 2024 brackets, which have become comparatively wider than before. (In this context, "width" refers to the difference between the lowest and highest dollar amounts in a tax bracket.)

Wider tax brackets play a role in preventing "bracket creep." Bracket expansion reduces the likelihood of you being pushed into a higher tax bracket if your income remains constant or grows at a slower rate than inflation.

Have wages and income kept up with inflation?

In recent years, on average, wages have generally increased. However, due to the pandemic, many workers' wages have only kept pace with inflation, which has, in recent years, hovered around a 40-year high.

Have wages and income kept up with inflation?

In recent years, on average, wages have generally increased. However, due to the pandemic, many workers' wages have only kept pace with inflation, which has, in recent years, hovered around a 40-year high.

According to the Bureau of Labor Statistics, wages and salaries increased 4.7 percent for the 12-month period ending in June 2023 and 3.2 percent a year ago. Meanwhile, the August consumer price index (CPI) —the widely used measure of inflation — rose 3.7%.

[About this writer:
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As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.]