2024 Tax Filing Changes: Tax Changes, Tax Brackets and Tax Rates for the 2024 Tax Year
Key Points
Note these 2024 tax filing changes, and we already know what you’re thinking; you feel as though it was only yesterday that you filed your 2023 form 1040 (or 1040-SR tax return if you’re a senior) and already, it’s time to start looking down the road and situating yourself for your 2024 returns. Healthy tax planning means understanding the differences between your last tax year filing and your upcoming tax year filing; with a high level of awareness as to the new 2024 tax year updates, you can be better prepared for your filings.
Several significant tax changes took effect for the 2024 tax year. Here are the most notable ones:
Income Tax Brackets
Income tax brackets were adjusted upward by approximately 5.4% for inflation. This means you can earn more income before moving into a higher tax bracket compared to 2023.
Standard Deduction Increase
The standard deduction increased to:
- $14,600 for single filers (up from $13,850)
- $29,200 for married couples filing jointly (up from $27,700)
- $21,900 for heads of household (up from $20,800)
Retirement Account Contribution Limits
- 401(k) contribution limit increased to $23,000 (up from $22,500)
- IRA contribution limit increased to $7,000 (up from $6,500)
- Catch-up contribution limit for those 50+ remained at $7,500 for 401(k)s and $1,000 for IRAs
- A new “Secure 2.0” provision took effect requiring catch-up contributions for high-income earners ($145,000+) to be made to Roth accounts
Estate Tax Exemption
The federal estate tax exemption increased to $13.61 million per individual (up from $12.92 million)
Health Savings Accounts (HSAs)
- Maximum contribution limit increased to $4,150 for individual coverage (up from $3,850)
- Maximum contribution limit increased to $8,300 for family coverage (up from $7,750)
Child Tax Credit
The Child Tax Credit remained at $2,000 per qualifying child with up to $1,600 being refundable (through the Additional Child Tax Credit)
Electric Vehicle Tax Credits
Changes to the Clean Vehicle Credit requirements made more vehicles eligible while requiring final assembly in North America and implementing income caps for eligibility
Keep in mind that since my reliable knowledge cutoff is October 2024, there may have been subsequent changes or interpretations of these tax provisions that I’m not aware of. For the most current and personalized tax advice, I’d recommend consulting with a qualified tax professional.
We’ve laid out the 2024 tax brackets and corresponding rates to help make things a little easier for you. Should you want to inquire as to other changes for the 2024 tax year such as long-term capital gain tax rates, standard deductions, the residential clean energy credits, the energy efficient home improvement credit or the clean vehicle credit, please contact us and we’ll answer any questions you have.
2024 Tax Brackets and Tax Owed
For the 2024 tax year, there are seven tax rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%, the same number of tax rates as in tax year 2023. Tax returns for the 2024 calendar year are due in April 15th 2025 or October 15th 2025 with an extension.
The 2024 income thresholds for each tax bracket, for the 2nd year in a row, were adjusted significantly, therefore many taxpayers will be in a lower tax bracket than they were in previous years.
You can use the 2024 tax tables below to find your tax bracket. These brackets are for taxes that were due April 15, 2025.
2024 tax table: single filers
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $11,600 | 10% of taxable income |
| 12% | $11,601 to $47,150 | $1,160.00 plus 12% of the amount over $11,600 |
| 22% | $47,151 to $100,525 | $5,426.00 plus 22% of the amount over $47,150 |
| 24% | $100,526 to $191,950 | $17,168.50 plus 24% of the amount over $100,525 |
| 32% | $191,951 to $243,725 | $39,110.50 plus 32% of the amount over $191,950 |
| 35% | $243,726 to $609,350 | $55,678.50 plus 35% of the amount over $243,725 |
| 37% | $609,351 or more | $183,647.25 plus 37% of the amount over $609,350 |
2024 tax table: married, filing jointly
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $23,200 | 0% of taxable income |
| 12% | $23,201 to $94,300 | $2,320.00 plus 12% of the amount over $23,200 |
| 22% | $94,301 to $201,050 | $10,852.00 plus 22% of the amount over $94,300 |
| 24% | $201,051 to $383,900 | $34,337.00 plus 24% of the amount over $201,050 |
| 32% | $383,901 to $487,450 | $78,221.00 plus 32% of the amount over $383,900 |
| 35% | $487,451 to $731,200 | $111,357.00 plus 35% of the amount over $487,450 |
| 37% | $731,201 or more | $196,669.50 plus 37% of the amount over $731,200 |
2024 tax table: married, filing separately
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $11,600 | 10% of taxable income |
| 12% | $11,601 to $47,150 | $1,160.00 plus 12% of the amount over $11,600 |
| 22% | $47,151 to $100,525 | $5,426.00 plus 22% of the amount over $47,150 |
| 24% | $100,526 to $191,950 | $17,168.50 plus 24% of the amount over $100,525 |
| 32% | $191,951 to $243,725 | $39,110.50 plus 32% of the amount over $191,950 |
| 35% | $243,726 to $365,600 | $55,678.50 plus 35% of the amount over $243,725 |
| 37% | $365,601 or more | $98,334.75 plus 37% of the amount over $365,600 |
2024 tax table: head of household
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $16,550 | 10% of taxable income |
| 12% | $16,551 to $63,100 | $1,655.00 plus 12% of the amount over $16,550 |
| 22% | $63,101 to $100,500 | $7,241.00 plus 22% of the amount over $63,100 |
| 24% | $100,501 to $191,950 | $15,469.00 plus 24% of the amount over $100,500 |
| 32% | $191,951 to $243,700 | $37,417.00 plus 32% of the amount over $191,950 |
| 35% | $243,701 to $609,350 | $53,977.00 plus 35% of the amount over $243,700 |
| 37% | $609,351 or more | $181,954.50 plus 37% of the amount over $609,350 |
In a Nutshell
Staying up-to-date with annual tax filing policies can have a tremendously positive impact on your tax planning as well as your annual tax filings; this knowledge can be a determining factor in hurting or helping your bottom line .
