My Blog
Technology

2024 Tax Brackets: This Is Why Your Paycheck Could Be Bigger This Year


You didn’t receive a raise in 2023, but you may have noticed that you’re receiving a slightly different amount of money in your paycheck. The IRS increased 2024 tax brackets, which could translate into more money on payday for some folks.

Both federal income tax brackets and the standard deduction were raised for 2024. The higher amounts will apply to your 2024 taxes, which you’ll file in 2025

It’s normal for the IRS to make tax code changes each year to account for inflation. This also helps prevent “tax bracket creep,” which could push you into a higher tax bracket, despite inflation eating into your wages. So, even if you make more money in 2024, factoring inflation into the tax code could prevent you from being pushed into a higher tax bracket — and may even bring you down to a lower bracket and bump up your take-home pay. Here’s why. 

For more on taxes, here are our picks for the best tax software for 2024, what you need to know about tax filing deadlines this year and when you can expect to receive your child tax credit money.

How tax code changes affect your paycheck

tax tips badge art

When the IRS raises federal income tax brackets, you might fall into a lower tax bracket than you did the year before — particularly if your income has stayed the same. 

For example, if you made $45,000 in 2023, you would have fallen into the 22% tax bracket for that tax year. But if your income remains at $45,000 in 2024, you’ll drop down to the 12% bracket. That means you’ll be on the hook for less federal tax next year and will have less money withdrawn from your paycheck.

If you make more in 2024 than you did in 2023, the amount your pay has increased will determine where you fall. It’s possible you’ll still fall into a lower tax bracket, based on the new changes. But you may remain in the same bracket or move up to a higher one.

In either scenario, it’s important to understand that since inflation is still lingering, you’re likely feeling the sting of high prices in different ways. So, even if you drop into a lower tax bracket and take home a slightly bigger paycheck next year, it’s likely inflation is already eating into the amount you pay for housing, gas, food or other essentials. 

2024 income tax brackets

Your federal income tax bracket helps determine how much you’ll pay in taxes for a given tax year, excluding the standard deduction or any itemized tax deductions

2024 income tax brackets for single filers:

$11,600 or less 10%
$11,601 – $47,150 $1,160 plus 12% of income over $11,600
$47,151 – $100,525 $5,426 plus 22% of income over $47,150
$100,526 – $191,950 $17,168.50 plus 24% of income over $100,525
$191,951 – $243,725 $39,110.50 plus 32% of income over $191,950
$243,726 – $609,350 $55,678.50 plus 35% of income over $243,725
$609,351 or more $183,647.25 plus 37% of income over $609,350

2024 income tax brackets for filers who are married, filing jointly:

$23,200 or less 10%
$23,201 – $94,300 $2,320 plus 12% of income over $23,200
$94,301 – $201,050 $10,852 plus 22% of income over $94,300
$201,051 – $383,900 $34,227 plus 24% of income over $201,050
$383,901 – $487,450 $78,221 plus 32% of income over $383,900
$487,451 – $731,200 $111,357 plus 35% of income over $487,450
$731,201 or more $196,669.50 plus 37% of income over $731,200

2024 income tax brackets for head of household filers:

$16,550 or less 10%
$16,551 – $63,100 $1,655 plus 12% of income over $16,550
$63,101 – $100,500 $7,241 plus 22% of income over $63,100
$100,501 – $191,950 $15,469 plus 24% of income over $100,500
$191,951 – $243,700 $37,417 plus 32% of income over $191,150
$243,701 – $609,350 $53,977 plus 35% of income over $243,700
$609,351 or more $181,954.50 plus 37% of income over $609,350

2024 standard deduction

For 2024, the standard tax deduction for single filers has been raised to $14,600, a $750 increase from 2023. For those married and filing jointly, the standard deduction has been raised to $29,200, up $1,500 from the previous year.

Single or married, filing separately $13,850 $14,600
Married, filing jointly $27,700 $29,200
Head of household $20,800 $21,900

Source for all charts: IRS (PDF).

Most taxpayers with simple tax returns claim the standard deduction, which reduces their taxable income. If you receive your wages solely from an employer as a W-2 employee, the standard deduction is usually the best way to maximize your tax refund. If you’re self-employed or have specific deductions you’d like to claim, you’ll itemize your deductions instead.

Other 2024 tax changes that may help you

There are other tax changes happening next year that could put more money in your paycheck. If you collect Social Security, you’ll receive a 3.2% cost-of-living-adjustment in 2024. And since the first of January falls on a holiday, you can expect to receive your first increased SSI payment at the end of December.

The IRS also announced a series of other increases to popular tax credits and deductions for 2024, including a higher maximum for the Earned Income Tax Credit, adjustments to the gift tax exclusion and an increase to the foreign earned income exclusion.

We’ll keep you updated as new tax changes are announced.



Related posts

Elon Musk asks court docket to scrap SEC settlement over his tweets, claiming he used to be ‘pressured’ to go into into it

newsconquest

How to Finally Try Out ‘The Mandalorian’ Without Disney Plus

newsconquest

France orders Apple to pull iPhone 12 off shelves for high radiation levels

newsconquest

Leave a Comment