12/06/2024
Tax Brackets
Income Tax Brackets and Rates
The 2024 income ceiling for all listed tax brackets and for all filers, adjusted for inflation are listed below. The Seven federal income tax rates for 2024 are... 10% - 12% - 22% - 24% - 32% - 35% - 37% (no changes from 2023). The marginal income tax rate of 37% will apply to taxpayers with taxable income above $609,350 (single filers), and $731,200 is the target for married couples filing jointly...(SEE Table 1)
Table 1. Tax Brackets and Rates, 2024 (Source: IRS)
Rate Single Individuals - Taxable Income Over Married Individuals Filing Joint Returns - Taxable Income Over Heads of Households - Taxable Income Over
10% Up to $11,600 Up to $23,200 Up to $16,550
12% $11,600 up to $47,150 $23,200 up to $94,300 $16,550 up to $63,100
22% $47,150 up to $100,525 $94,300 up to $201,050 $63,100 up to $100,500
24% $100,525 up to $191,950 $201,050 up to $383,900 $100,500 up to $191,950
32% $191,950 up to $243,725 $383,900 up to $487,450 $191,950 up to $243,700
35% $243,725 up to $609,350 $487,450 up to $731,200 $243,700 up to $609,350
37% At or above $609,350 At or above $731,200 At or above $609,350
Standard Deduction & Personal Exemption
2024 has standard deductions for single filers increasing by $750; $1500 for married couples filing jointly. Seniors over the age of 65 are eligible to claim an additional standard deduction of $1,950 for single filers and $1,550 for joint filers. Personal exemptions for 2024 remains at ZERO (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017 )
Table 2. 2024 Standard Deduction and Personal Exemption (Source: IRS)
Filing Status Deduction Amount
Single $14,600
Married Filing Jointly $29,200
Head of Household $21,900
Married Seniors Additional Deductions $1,550
Unmarried Seniors Additional Deductions $1,950
Alternative Minimum Tax
Created in the 1960s, The Alternative Minimum Tax (AMT) was setup to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at IRS.Gov (SEE Table 3).
Table 3. 2024 Alternative Minimum Tax Exemptions (Source:IRS)
Filing Status Exemption Amount
Unmarried Individuals $85,700
Married Filing Jointly $133,300
2024 keeps the AMT rate at 28%. This rate applies to excess AMTI of $232,600 for all taxpayers ($116,300 for married couples who file separate returns).
The AMT exemptions phase out at 25 cents per dollar earned once a taxpayers AMTI hits a certain threshold. In 2024, the exemption will start phasing out at $609,350 in AMTI for single filers and $1,218,700 for married taxpayers filing jointly (SEE Table 4).
Table 4. 2024 Alternative Minimum Tax Exemption Phaseout Thresholds
Filing Status Threshold
Unmarried Individuals $609,350
Married Filing Jointly $1,218,700
Earned Income Tax Credit
The 2024 Maximum Earned Income Tax Credit (EITC) for single and joint filers is $632 (no children) (SEE Table 5). The maximum credit is $4,213 for one child, $6,960 for two children, and $7,830 for three or more children.
Table 5. 2024 Earned Income Tax Credit Parameters
Filing Status Single or Head of Household No Children One Child Two Children Three or More Children
Income at Max Credit $8,260 $12,390 $17,400 $17,400
Maximum Credit $632 $4,213 $6,960 $7,830
Phaseout Begins $10,330 $22,720 $22,720 $22,720
Phaseout Ends (Credit Equals 0 (Zero)) $18,591 $49,084 $55,768 $59,899
Filing Status Married Filing Jointly No Children One Child Two Children Three or More Children
Income at Max Credit $8,260 $12,390 $17,400 $17,400
Maximum Credit $632 $4,213 $6,960 $7,830
Phaseout Begins $17,250 $29,640 $29,640 $29,640
Phaseout Ends (Credit Equals Zero) $25,511 $56,004 $62,688 $66,819
Qualified Business Income Deduction
Within the Tax Cuts and Jobs Act, there is an inclusion of a 20% deduction in 2024 for pass-through businesses with $191,950 of qualified business income for single taxpayers and $383,900 for married taxpayers filing jointly (SEE Table 6).
Table 6. 2024 Qualified Business Income Deduction Thresholds (Source:IRS)
Filing Status Threshold
Unmarried Individuals $191,950
Married Filing Jointly $383,900
Child Tax Credit
The maximum Child Tax Credit for 2024 is $2,000 per child who qualifies, with no adjustments for inflation. The amount that may be refunded for the Child Tax Credit is adjusted for inflation and increases from $1,600 to $1,700 in 2024.
2024 Annual Exclusion for Gifts
For 2024, the first $18,000 of gifts to any person is excluded from tax. Exclusions are increased to $185,000 from $175,000 for gifts to spouses who're not citizens of the United States.
2024 Capital Gains Tax Rates & Brackets (Long-term Capital Gains)
Capital Gains, long term, are taxed using different rates and brackets compared to standard income.
Table 7. 2024 Capital Gains Tax Rates & Brackets (Source:IRS)
Unmarried Individuals - Taxable Income Over Married Individuals Filing Joint Returns - Taxable Income Over Heads of Households - Taxable Income Over
0% $0 $0 $0
15% $47,025 $94,050 $63,000
20% $518,900 $583,750 $551,350
2023 Tax Brackets
Income Tax Brackets and Rates
The 2023 income ceiling for all listed tax brackets and for all filers, adjusted for inflation are listed below. The Seven federal income tax rates for 2023 are... 10% - 12% - 22% - 24% - 32% - 35% - 37% The marginal income tax rate of 37% will apply to taxpayers with taxable income above $539,900 (single filers), and $693,750 is the target for married couples filing jointly...(SEE Table 1)
Table 1. Tax Brackets and Rates, 2023 (Source: IRS)
Rate Single Individuals - Taxable Income Over Married Individuals Filing Joint Returns - Taxable Income Over Heads of Households - Taxable Income Over
10% Up to $o $15,700
12% $11,000 to $44,725 $22,000 to $89,450 $15,700 to $59,850
22% $44,725 to $95,375 $89,450 to $190,750 $59,850 to $95,350
24% $95,375 to $182,100 $190,750 to $364,200 $95,350 to $182,100
32% $182,100 to $231,250 $364,200 to $462,500 $182,100 to $231,250
35% $231,250 to $578,125 $462,500 to $693,750 $231,250 to $578,100
37% At or above $578,125 At or above $693,750 At or above $578,100
Standard Deduction and Personal Exemption
2023 has standard deductions for single filers increasing by $900; $1800 for married couples filing jointly. Personal exemptions for 2023 remains at ZERO (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017 )
Table 2. 2023 Standard Deduction and Personal Exemption (Source: IRS)
Filing Status Deduction Amount
Single $13,850
Married Filing Jointly $27,700
Head of Household $20,800
Alternative Minimum Tax
Created in the 1960s, The Alternative Minimum Tax (AMT) was setup to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at IRS.Gov (SEE Table 3).
Table 3. 2023 Alternative Minimum Tax Exemptions (Source:IRS)
Filing Status Exemption Amount
Unmarried Individuals $81,300
Married Filing Jointly $126,500
2023 still sees the AMT rate at 28%. This rate applies to excess AMTI of $220,700 for all taxpayers ($110,350 for married couples who file separate returns).
The AMT exemptions phase out at 25 cents per dollar earned once a taxpayers AMTI hits a certain threshold. In 2023, the exemption will start phasing out at $578,150 in AMTI for single filers and $1,156,300 for married taxpayers filing jointly (SEE Table 4).
Table 4. 2023 Alternative Minimum Tax Exemption Phaseout Thresholds
Filing Status Threshold
Unmarried Individuals $578,150
Married Filing Jointly $1,156,300
Earned Income Tax Credit
The 2023 Maximum Earned Income Tax Credit (EITC) for single and joint filers is $560 (no children) (SEE Table 5). The maximum credit is $3,995 for one child, $6,604 for two children, and $7,430 for three or more children. Increases are nominal.
Table 5. 2023 Earned Income Tax Credit Parameters
Filing Status Single or Head of Household No Children One Child Two Children Three or More Children
Income at Max Credit $7,840 $11,750 $16,510 $16,510
Maximum Credit $600 $3,995 $6,604 $7,430
Phaseout Begins $9,800 $21,560 $21,560 $21,560
Phaseout Ends (Credit Equals 0 (Zero)) $17,640 $46,560 $52,918 $56,838
Married Filing Jointly
Income at Max Credit $7,840 $11,750 $16,510 $16,510
Maximum Credit $600 $3,995 $6,604 $7,430
Phaseout Begins $16,370 $28,120 $28,120 $28,120
Phaseout Ends (Credit Equals Zero) $24,210 $53,120 $59,478 $63,398
