Once again, inflation rates will likely result in another upward adjustment to tax brackets and an increase in the standard deduction for the 2024 tax year. According to Bloomberg Tax & Accounting, inflation-adjusted amounts are projected to increase by 5.4%. Although this is less than the inflation adjustment for tax year 2023, the higher tax brackets will continue to provide some tax relief for federal workers and retirees
How Graduated Tax Brackets Work
Since U.S. income tax rates are graduated, you pay different rates on graduated amounts of your earned income that’s subject to federal taxes. For example, if you file as single and you’re in the 22% tax bracket in 2024, it doesn’t mean you’ll pay 22% on all your taxable income. You’ll pay 10% on your taxable earnings up to $11,600, then 12% on taxable earnings over $11,600 to $47,150, then 22% on taxable earnings above that up to $100,525.
“Considering the latest inflation-adjusted tax rates and standard deduction may put you in a lower tax bracket, you’ll likely be able to lower your federal tax bill in 2024.“
Projected 2024 Tax Brackets
Remember — if you’re married and filing separately, you’ll pay the same tax rate as an unmarried individual.
Unmarried Individuals
- 10% – $0 to $11,600
- 12% – Over $11,600 to $47,150
- 22% – Over $47,150 to $100,525
- 24% – Over $100,525 to $191,950
- 32% – Over $191,950 to $243,725
- 35% – Over $243,725 to $609,350
- 37% – Over $609,350
Married Filing Jointly & Surviving Spouses
- 10% – $0 to $23,200
- 12% – Over $23,200 to $94,300
- 22% – Over $94,300 to $201,050
- 24% – Over $201,050 to $383,900
- 32% – Over $383,900 to $487,450
- 35% – Over $487,450 to $731,200
- 37% – Over $731,200
