If you’re wondering how much federal income tax you’ll owe for the 2024 tax year, you’ll need to know your tax bracket and your taxable income. The IRS has recently announced the annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes.
What Are the IRS Tax Brackets?
The IRS tax brackets are the ranges of taxable income that are subject to different tax rates. The U.S. has a progressive income tax system, meaning that higher incomes are taxed at higher rates. There are seven federal income tax rates in 2024: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your tax bracket depends on your filing status (single, married filing jointly, married filing separately, or head of household) and your taxable income. Your taxable income is your gross income minus any adjustments, deductions, and exemptions that you qualify for.
The IRS tax brackets are not the same as your tax rate. Your tax rate is the percentage of your taxable income that you pay in taxes. Your tax rate can be different from your tax bracket because you don’t pay the same rate on all of your income. Instead, you pay the rate for each bracket on the portion of your income that falls within that bracket. This is called the marginal tax rate.
For example, if you’re a single filer with a taxable income of $50,000 in 2024, you’ll pay 10% on the first $11,600, 12% on the next $36,125, and 22% on the remaining $2,275. Your marginal tax rate is 22%, but your average tax rate (or effective tax rate) is lower because you pay lower rates on some of your income.
How to Calculate Your Tax Liability Using the IRS Tax Brackets
To calculate your tax liability using the IRS tax brackets, you need to know your filing status and your taxable income. Then, you can use the tax rate schedules for 2024 to find out how much tax you owe on each portion of your income. You can also use our tax bracket calculator to estimate your tax rate and tax liability.
Here are the tax rate schedules for 2024 for each filing status:
Single
| Taxable Income | Tax Rate |
|---|---|
| $0 to $11,600 | 10% |
| $11,601 to $47,150 | 12% |
| $47,151 to $100,525 | 22% |
| $100,526 to $191,950 | 24% |
| $191,951 to $243,725 | 32% |
| $243,726 to $609,350 | 35% |
| Over $609,350 | 37% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 to $23,200 | 10% |
| $23,201 to $94,300 | 12% |
| $94,301 to $201,050 | 22% |
| $201,051 to $383,900 | 24% |
| $383,901 to $487,450 | 32% |
| $487,451 to $731,200 | 35% |
| Over $731,200 | 37% |
Married Filing Separately
| Taxable Income | Tax Rate |
|---|---|
| $0 to $11,600 | 10% |
| $11,601 to $47,150 | 12% |
| $47,151 to $100,525 | 22% |
| $100,526 to $191,950 | 24% |
| $191,951 to $243,725 | 32% |
| $243,726 to $365,600 | 35% |
| Over $365,600 | 37% |
Head of Household
| Taxable Income | Tax Rate |
|---|---|
| $0 to $16,550 | 10% |
| $16,551 to $63,100 | 12% |
| $63,101 to $100,500 | 22% |
| $100,501 to $191,950 | 24% |
| $191,951 to $243,700 | 32% |
| $243,701 to $609,350 | 35% |
| Over $609,350 | 37% |
Let’s look at an example of how to calculate your tax liability using the IRS tax brackets. Suppose you’re married and filing jointly with your spouse, and your taxable income is $150,000 in 2024. Here’s how much tax you’ll owe on each portion of your income:
| Taxable Income | Tax Rate | Tax Amount |
|---|---|---|
| $0 to $23,200 | 10% | $2,320 |
| $23,201 to $94,300 | 12% | $8,532 |
| $94,301 to $150,000 | 22% | $12,254 |
| Total | $23,106 |
Your tax liability for 2024 is $23,106. Your marginal tax rate is 22%, but your effective tax rate is lower: $23,106 / $150,000 = 15.4%.
How Do the 2024 Tax Brackets Compare to the 2023 Tax Brackets?
The 2024 tax brackets have the same tax rates as the 2023 tax brackets, but the income thresholds have increased significantly due to inflation. The IRS uses the Chained Consumer Price Index (C-CPI) to adjust the tax brackets for inflation each year. The C-CPI measures the changes in the prices of goods and services that consumers buy, taking into account how consumers may substitute cheaper items when prices rise. The C-CPI for 2024 is based on the inflation rate from September 2022 to August 2023, which was 5.4%. This is the highest inflation rate since 1990.
The inflation adjustment for the tax brackets means that taxpayers may pay less tax in 2024 than they would have if the brackets had remained the same as in 2023. For example, if you’re a single filer with a taxable income of $50,000 in 2023 and 2024, you’ll pay $6,790 in federal income tax in 2023, but only $6,676 in 2024. That’s a tax savings of $114, or 1.7%. The higher your income, the more you may save in taxes due to the inflation adjustment.
Here are the tax rate schedules for 2023 for each filing status, for comparison:
Single
| Taxable Income | Tax Rate |
|---|---|
| $0 to $10,275 | 10% |
| $10,276 to $41,775 | 12% |
| $41,776 to $89,075 | 22% |
| $89,076 to $170,050 | 24% |
| $170,051 to $215,950 | 32% |
| $215,951 to $539,900 | 35% |
| Over $539,900 | 37% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 to $20,550 | 10% |
| $20,551 to $83,550 | 12% |
| $83,551 to $178,150 | 22% |
| $178,151 to $340,100 | 24% |
| $340,101 to $431,900 | 32% |
| $431,901 to $647,850 | 35% |
| Over $647,850 | 37% |
Married Filing Separately
| Taxable Income | Tax Rate |
|---|---|
| $0 to $10,275 | 10% |
| $10,276 to $41,775 | 12% |
| $41,776 to $89,075 | 22% |
| $89,076 to $170,050 | 24% |
| $170,051 to $215,950 | 32% |
| $215,951 to $323,925 | 35% |
| Over $323,925 | 37% |
Head of Household
| Taxable Income | Tax Rate |
|---|---|
| $0 to $14,650 | 10% |
| $14,651 to $55,900 | 12% |
| $55,901 to $89,050 | 22% |
| $89,051 to $170,050 | 24% |
| $170,051 to $215,950 | 32% |
| $215,951 to $539,900 | 35% |
| Over $539,900 | 37% |
How to Reduce Your Taxable Income and Lower Your Effective Tax Rate
Contribute to a tax-advantaged retirement account.
If you have access to a 401(k), 403(b), or similar plan through your employer, you can defer a portion of your income from taxes by contributing to the plan. The contribution limit for 2024 is $20,500 for most workers and $27,000 for those aged 50 or older. If you don’t have an employer-sponsored plan, you may be able to contribute to an individual retirement account (IRA), either traditional or Roth. The contribution limit for 2024 is $6,500 for most savers and $7,500 for those aged 50 or older.
The difference between a traditional and a Roth IRA is that a traditional IRA allows you to deduct your contributions from your taxable income, while a Roth IRA does not. However, a Roth IRA offers tax-free growth and withdrawals in retirement, while a traditional IRA does not. The best option for you depends on your current and expected future tax rates, as well as other factors.
Claim all the deductions and credits that you qualify for.
Deductions and credits are two ways to reduce your taxable income and your tax liability, respectively. Deductions lower your taxable income by the amount of the deduction, while credits lower your tax liability by the amount of the credit. Deductions and credits have different eligibility requirements and limitations, so you need to check the IRS rules carefully before claiming them.
Some of the most common deductions and credits are the standard deduction, the itemized deductions, the earned income tax credit, the child tax credit, the education credits, and the health care credits. You can use our tax deduction calculator and our tax credit calculator to estimate how much you can save by claiming these tax breaks.
Adjust your withholding or make estimated tax payments.
If you have income from sources other than wages, such as self-employment, investments, or rental properties, you may need to pay estimated taxes throughout the year to avoid underpayment penalties and interest. You can use Form 1040-ES to calculate your estimated tax liability and make quarterly payments to the IRS.
Alternatively, if you have income from wages, you can adjust your withholding by filling out a new Form W-4 and giving it to your employer. You can use our withholding calculator to determine how much tax you should have withheld from your paycheck. The goal is to have enough tax withheld or paid throughout the year to avoid owing a large amount or getting a large refund when you file your tax return.
Conclusion
The IRS tax brackets are the ranges of taxable income that are subject to different tax rates. The tax brackets for 2024 have increased significantly due to inflation, which may result in lower tax liability for some taxpayers. However, your tax liability also depends on your filing status, your deductions, your credits, and your withholding or estimated tax payments.
To reduce your taxable income and lower your effective tax rate, you can consider contributing to a tax-advantaged retirement account, claiming all the deductions and credits that you qualify for, and adjusting your withholding or making estimated tax payments. You can use our tax bracket calculator, our tax deduction calculator, our tax credit calculator, and our withholding calculator to estimate your tax situation for 2024.
FAQs
Q: What is the difference between taxable income and gross income?
A: Taxable income is your gross income minus any adjustments, deductions, and exemptions that you qualify for. Gross income is your total income from all sources, such as wages, salaries, tips, interest, dividends, capital gains, business income, alimony, pensions, and social security benefits.
Q: What is the difference between the standard deduction and the itemized deductions?
A: The standard deduction is a fixed amount that you can subtract from your taxable income, regardless of your expenses. The standard deduction for 2024 is $13,050 for single filers, $26,100 for married filing jointly, $13,050 for married filing separately, and $18,800 for head of household.
The itemized deductions are specific expenses that you can deduct from your taxable income, such as mortgage interest, property taxes, medical expenses, charitable contributions, and state and local taxes. You can choose to take either the standard deduction or the itemized deductions, whichever is higher for you.
Q: What is the difference between the earned income tax credit and the child tax credit?
A: The earned income tax credit (EITC) is a refundable tax credit that benefits low- to moderate-income workers, especially those with children. The amount of the EITC depends on your income, your filing status, and the number of qualifying children you have.
The maximum EITC for 2024 is $6,920 for workers with three or more children, $6,160 for workers with two children, $3,940 for workers with one child, and $564 for workers with no children. The child tax credit (CTC) is a partially refundable tax credit that benefits families with children under the age of 18. The amount of the CTC is $2,000 per child, of which up to $1,400 is refundable. The CTC also includes a $500 credit for other dependents, such as elderly parents or disabled children.
Q: How do I know if I need to pay estimated taxes?
A: You need to pay estimated taxes if you expect to owe at least $1,000 in federal income tax for 2024, and you expect your withholding and refundable credits to be less than the smaller of 90% of your 2024 tax liability or 100% of your 2023 tax liability (110% if your 2023 adjusted gross income was more than $150,000 for married filing jointly or $75,000 for other filers). You can use Form 1040-ES to calculate your estimated tax liability and make quarterly payments to the IRS.
Q: When are the deadlines for filing my tax return and paying my tax liability?
A: The deadline for filing your 2024 tax return and paying your tax liability is April 15, 2025, unless you request an extension. If you request an extension, you have until October 15, 2025, to file your tax return, but you still have to pay your tax liability by April 15, 2025, to avoid penalties and interest. If you pay estimated taxes, the deadlines for making your quarterly payments are April 15, June 15, and September 15, 2024, and January 15, 2025.
Q: What are the penalties and interest for late filing and late payment?
A: The penalty for late filing is 5% of the unpaid tax for each month or part of a month that your return is late, up to a maximum of 25%. The penalty for late payment is 0.5% of the unpaid tax for each month or part of a month that your payment is late, up to a maximum of 25%. The interest rate for late payment is the federal short-term rate plus 3%, compounded daily. The IRS may waive the penalties and interest if you can show reasonable cause for your failure to file or pay on time.
Q: How can I check the status of my tax refund?
A: You can check the status of your tax refund by using the IRS’s Where’s My Refund? tool, which is available on the IRS website or the IRS2Go mobile app. You’ll need to provide your Social Security number, your filing status, and the exact amount of your refund. You can check the status of your refund within 24 hours after the IRS receives your e-filed return, or four weeks after you mail your paper return.
Q: How can I get help with my taxes?
A: You can get help with your taxes by using the IRS’s online tools and resources, such as the Interactive Tax Assistant, the Tax Withholding Estimator, the Free File program, and the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. You can also call the IRS at 1-800-829-1040 for general tax questions, or 1-800-829-1954 for refund inquiries. You can also visit a local IRS office or a tax professional for assistance.
Q: How can I contact the IRS?
A: You can contact the IRS by phone, mail, online, or in person. The IRS has different phone numbers for different types of inquiries, such as individual tax questions, business tax questions, refund inquiries, identity theft issues, and tax fraud reporting. You can find the phone numbers on the IRS website or in the instructions for your tax forms.
You can also write to the IRS at the address shown on your tax return or notice. You can use the IRS’s online services, such as the Where’s My Refund? tool, the Get Transcript tool, the Online Payment Agreement tool, and the Online Account tool, to access your tax information and make payments. You can also visit a local IRS office or a taxpayer assistance center for face-to-face help, but you may need to make an appointment in advance.
