2024 Income Tax Brackets and Federal Tax Rates
Gain clarity on the 2024 federal tax system. This guide moves beyond the rates to explain how your taxable income and marginal brackets work together.
The United States has a progressive tax system where higher portions of income are taxed at increased rates. These rates are set within brackets that the Internal Revenue Service (IRS) adjusts annually for inflation. This adjustment prevents “bracket creep,” where inflation can push taxpayers into higher brackets without an increase in real income. The following figures for the 2024 tax year, used for filing tax returns in early 2025, reflect these changes.
2024 Federal Income Tax Brackets and Rates
The 2024 federal income tax system uses seven tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. A taxpayer’s filing status determines which income thresholds apply. The four filing statuses are Single, Married Filing Jointly, Married Filing Separately, and Head of Household.
2024 Tax Brackets: Single
10% on taxable income up to $11,600
12% on taxable income over $11,600 to $47,150
22% on taxable income over $47,150 to $100,525
24% on taxable income over $100,525 to $191,950
32% on taxable income over $191,950 to $243,725
35% on taxable income over $243,725 to $609,350
37% on taxable income over $609,350
2024 Tax Brackets: Married Filing Jointly
10% on taxable income up to $23,200
12% on taxable income over $23,200 to $94,300
22% on taxable income over $94,300 to $201,050
24% on taxable income over $201,050 to $383,900
32% on taxable income over $383,900 to $487,450
35% on taxable income over $487,450 to $731,200
37% on taxable income over $731,200
2024 Tax Brackets: Head of Household
10% on taxable income up to $16,550
12% on taxable income over $16,550 to $63,100
22% on taxable income over $63,100 to $100,500
24% on taxable income over $100,500 to $191,950
32% on taxable income over $191,950 to $243,700
35% on taxable income over $243,700 to $609,350
37% on taxable income over $609,350
2024 Tax Brackets: Married Filing Separately
10% on taxable income up to $11,600
12% on taxable income over $11,600 to $47,150
22% on taxable income over $47,150 to $100,525
24% on taxable income over $100,525 to $191,950
32% on taxable income over $191,950 to $243,725
35% on taxable income over $243,725 to $365,600
37% on taxable income over $365,600
How Tax Brackets Work
The U.S. tax system is marginal, which means different portions of income are taxed at progressively higher rates. When your income enters a new bracket, only the amount within that new bracket is taxed at the higher rate, not your entire income. This structure ensures you do not lose money by earning more and moving into a higher tax bracket.
For example, a single filer with $90,000 in taxable income in 2024 is taxed in segments. The first $11,600 is taxed at 10% ($1,160). The income between $11,601 and $47,150 is taxed at 12% ($4,266). The remaining income up to $90,000 is taxed at 22% ($9,427). The total federal income tax for this individual would be the sum of these amounts, which is $14,853.
This example illustrates two rates. The marginal tax rate is the rate paid on the last dollar of taxable income, which is 22% in the example. The effective tax rate is the total tax paid as a percentage of total taxable income. For the taxpayer above, the effective tax rate is 16.5% ($14,853 divided by $90,000).
Determining Your Taxable Income
Tax brackets apply to your taxable income, not your gross income. To calculate taxable income, you first make adjustments to your gross income to determine your Adjusted Gross Income (AGI). These deductions can include contributions to a traditional IRA, student loan interest, or certain self-employment expenses.
From your AGI, you subtract either the standard deduction or your itemized deductions to find your taxable income. The standard deduction is a fixed dollar amount that depends on your filing status and age. The amounts for 2024 are listed below.
2024 Standard Deduction Amounts
Single: $14,600
Married Filing Jointly: $29,200
Married Filing Separately: $14,600
Head of Household: $21,900
Taxpayers age 65 or older can claim an additional standard deduction. For 2024, this amount is $1,950 for single and head of household filers, and $1,550 for married filers.
Alternatively, you can itemize deductions if your total deductible expenses exceed your standard deduction amount. Itemized deductions can include home mortgage interest on up to $750,000 of principal, state and local taxes up to a $10,000 combined limit, and charitable contributions.
2024 Long-Term Capital Gains Tax Brackets
The tax system has separate rates for long-term capital gains, which differ from the rates for ordinary income like wages. A long-term capital gain is the profit from selling an asset, like stocks or real estate, held for more than one year. These gains are taxed at 0%, 15%, or 20%, depending on your taxable income.
The income thresholds for these rates are set for the 2024 tax year. These rates apply to the capital gain, which is calculated as the asset’s sale price minus its original cost basis.
2024 Long-Term Capital Gains Tax Rate Thresholds
0% Rate: Applies to taxable income up to $47,025 for Single filers, $94,050 for Married Filing Jointly, and $63,000 for Head of Household.
15% Rate: Applies to taxable income from $47,026 to $518,900 for Single filers, $94,051 to $583,750 for Married Filing Jointly, and $63,001 to $551,350 for Head of Household.
20% Rate: Applies to taxable income above $518,900 for Single filers, $583,750 for Married Filing Jointly, and $551,350 for Head of Household.
These rates should be distinguished from those for short-term capital gains, which result from selling an asset held for one year or less. Short-term gains are taxed at your ordinary income tax rates. High-income taxpayers may also be subject to a 3.8% Net Investment Income Tax in addition to the standard capital gains rates.