Not everybody pays the same amount of taxes. The IRS determines how much you’ll pay each year using a graduated-rate income tax system.
This year, the lowest rate is 10%, for single-filing individuals who make up to $11,600 in 2024. This is up from a cutoff of $11,000 for 2023. The highest rate is 37%, for single-filing individuals who make over $609,350 (up from $578,125 last year).
Graduated tax brackets are income-based and determine how much each portion of your earnings are taxed. The first $11,600 of a filer’s income is taxed at 10%. The next $35,500 is taxed at 12%, and so on.
None of the seven tax rates that make up the graduated brackets have changed since last year, though the thresholds themselves have been adjusted upwards. Here are the tax brackets for single filers in 2024:
- 10%: $0 to $11,600
- 12%: $11,600 to $47,150
- 22%: $47,150 to $100,525
- 24%: $100,525 to $191,950
- 32%: $191,950 to $243,725
- 35%: $243,725 to $609,350
- 37%: $609,350 and up
What is the standard deduction for 2024?
The standard deduction is a predetermined amount of income that isn’t taxed by the federal government. Alternatively, you can itemize your deductions to potentially save more than the standard deduction; however, after a tax overhaul in 2017, the vast majority taxpayers choose to take the standard deduction.
For single filers, the standard deduction for 2024 will be $14,600, up from $13,850 this year. For married couples filing jointly, the standard deduction will be $29,200.
For more information on inflation adjustments, go to the IRS website.