2024 Tax Brackets: What You Need to Know

 As the new year approaches, understanding the 2024 tax brackets is crucial for financial planning. 

The IRS adjusts tax brackets annually to account for inflation, and the 2024 tax brackets bring some changes that could impact your taxable income and how much you owe.

2024 Tax Brackets Breakdown

For the 2024 tax year, the tax brackets remain progressive, meaning the more you earn, the higher your tax rate. Below are the new 2024 tax brackets for single filers and married couples filing jointly:

Single Filers:

• 10%: Up to $11,000
• 12%: $11,001 - $44,725
• 22%: $44,726 - $95,375
• 24%: $95,376 - $182,100
• 32%: $182,101 - $231,250
• 35%: $231,251 - $578,125
• 37%: Over $578,125

Married Filing Jointly:

• 10%: Up to $22,000
• 12%: $22,001 - $89,450
• 22%: $89,451 - $190,750
• 24%: $190,751 - $364,200
• 32%: $364,201 - $462,500
• 35%: $462,501 - $693,750
• 37%: Over $693,750

Key Changes in 2024

The new 2024 tax brackets reflect minor increases in income thresholds, helping taxpayers keep more of their income. These adjustments are made to prevent "bracket creep," where inflation pushes taxpayers into higher tax brackets without an actual increase in purchasing power.

Planning for 2025 and Beyond

While the 2024 tax brackets are now set, taxpayers are also looking ahead to potential changes in tax brackets for 2025. Though the IRS hasn’t yet announced these numbers, it’s important to stay informed as tax policy could shift in the coming years.

Staying updated on these new tax brackets will help ensure you make informed financial decisions and optimize your tax situation.