Economic News
IRS Announces 2024 Tax Brackets, Adjusted Standard Deduction
The Internal Revenue Service (IRS) has released its latest inflation adjustments for the next tax year, including updated tax brackets and standard deduction figures.
About the updates:
As it does nearly every year, the IRS has updated the tax bracket figures for the 2024 tax year. Next year’s marginal tax rates will retain the same basic tiers (10%, 12%, 22%, 24%, 32%, 35%, and 37%) that were installed in 2018. However, each bracket has been adjusted upwards to account for inflation.
For the 2024 tax year, the 10% tax rate will apply to incomes of up to $11,600 for individuals or $23,200 for married couples filing jointly. These figures are up $600 and $1,200 respectively from this tax year. On the other end, the top-tier 37% marginal tax rate will now kick in for individuals with incomes greater than $609,350 (or $731,200 for married couples filing jointly). Compared to the 2023 brackets, this is an increase of $31,225 for Individuals and $37,450 for those filing jointly.
Below is a look at the new 2024 tax brackets alongside the 2023 brackets:
| Rate | 2024 Individuals | 2023 Individuals | 2024 Married Filing Jointly | 2023 Married Filing Jointly |
| 10% | Up to $11,600 | Up to $11,000 | Up to $23,200 | Up to $22,000 |
| 12% | $11,601 to $47,150 | $11,001 to $44,725 | $23,201 to $94,300 | $22,001 to $89,450 |
| 22% | $47,151 to $100,525 | $44,726 to $95,375 | $94,301 to $201,050 | $89,451 to $190,750 |
| 24% | $100,526 to $191,950 | $95,376 to $182,100 | $201,051 to $383,900 | $190,751 to $364,200 |
| 32% | $191,951 to $243,725 | $182,101 to $231,250 | $383,901 to $487,450 | $364,201 to $462,500 |
| 35% | $243,726 to $609,350 | $231,251 to $578,125 | $487,451 to $731,200 | $462,501 to $693,750 |
| 37% | Over $609,350 | Over $578,125 | Over $731,200 | Over $693,750 |
In addition to the tax bracket adjustments, the IRS will also increase the standard deduction for the 2024 tax year. For single taxpayers (and married individuals filing separately) this deduction will increase from $13,850 in 2023 to $14,600. Similarly, the standard deduction for married couples filing jointly will be $29,200 next year — marking a $1,500 increase. For heads of households, the deduction will reach $21,900 for 2024, which is up $1,100 from 2023’s $20,800.
My thoughts:
Honestly, there’s not really much to say about this one. For all taxpayers, these changes are positive news — although some will always feel as though further upward adjustments are called for. In any case, as a reminder, these updated brackets and new standard deductions will go into effect for the 2024 tax season, meaning that they won’t really be noticed by most consumers until early 2025 when they file their annual return.
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