Ogling the 2024 IRS Federal Income Tax Tables (2023’s too)
Posted By RichC on December 29, 2023
The IRS has set the new tax brackets to adjust for inflation beginning in January 2024. The update is to shift higher by 5.4%, but for 2023 taxes that most of us will be filing before April 15 and saw even more “bracket creep” due to the previously year’s inflation.
Here are the changes unveiled by the IRS. The inflation-adjusted elements will apply to the 2024 tax year, meaning returns filed in 2025.
Standard deduction
The standard deduction, which reduces the amount of income you must pay taxes on, is claimed by a majority of taxpayers.
It will rise to $29,200, up from $27,700 in 2023, for married couples filing jointly, amounting to a 5.4% bump. For individuals, the new maximum will be $14,600 for 2024, up from $13,850, the IRS said.
Heads of households will see their standard deduction jump to $21,900 in 2024, up from $20,800.
As for what you’ll need to know for 2023, here’s a summary from this week’s USAToday.
Income tax brackets jumped by 7% for 2023. Income tax is progressive: the more you earn, the more you pay as a percentage of your earnings. Each bracket represents a range of incomes subject to a particular income tax rate.
For individual filers [or 2023]:
- 37% for incomes over $578,125.
- 35% for incomes over $231,250.
- 32% for incomes over $182,100.
- 24% for incomes over $95,375.
- 22% for incomes over $44,725.
- 12% for incomes over $11,000.
- 10% for income below $11,000.
For married couples filing jointly [for 2023]:
- 37% for income greater than $693,750.
- 35% for incomes over $462,500.
- 32% for incomes over $364,200.
- 24% for incomes over $190,750.
- 22% for incomes over $89,450.
- 12% for incomes over $22,000.
- 10% for income below $22,000.
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