The 2024 federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%
The rate you pay depends on your income and filing status. The IRS sets seven tax brackets each year, and your income falls into one or more of them as you earn more money. The brackets changed slightly for 2024 to account for inflation — they are wider than they were in 2023, which means some people pay tax at a lower rate on the same income they earned the year before.
The brackets apply to ordinary income — wages, salary, interest, and most other money you receive. Long-term capital gains and may have access to dividends use different rates (0%, 15%, or 20%), which are usually lower. This article covers ordinary income brackets only.
Key Takeaways
- The 2024 brackets range from 10% to 37%, and which bracket you fall into depends on your total income and whether you file as single, married filing jointly, head of household, or married filing separately.
- The brackets are wider in 2024 than in 2023 because the IRS adjusts them annually for inflation, so the same income may be taxed at a lower rate than it was last year.
- You do not pay the top rate on all your income — you pay 10% on the first portion, then 12% on the next portion, and so on, which is why the system is called progressive taxation.
- The IRS publishes the exact dollar amounts for each bracket in January each year, and tax software and employers use these numbers to calculate withholding and prepare returns.
How the 2024 tax brackets work
The federal tax system uses marginal tax rates, which means you do not pay one flat rate on all your income. Instead, your income is divided into chunks, and each chunk is taxed at the rate for that bracket. If you are single and earn $50,000 in 2024, you do not pay 22% on all of it — you pay 10% on the first $11,600, then 12% on the next portion up to $47,150, then 22% on the remainder.
This is why people often say "I am in the 22% bracket" — they mean the highest bracket their income reaches, not the rate they pay on everything. Your effective tax rate (the average rate you pay on all your income) is always lower than your marginal rate.
The IRS adjusts the dollar amounts of each bracket every January to account for inflation. In 2024, the brackets are wider than they were in 2023, so the income thresholds where rates change are higher. This means some taxpayers who were in the 12% bracket in 2023 may fall into the 10% bracket in 2024, even if their income stayed the same or increased slightly.
2024 tax brackets by filing status
| Tax Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
|---|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $17,400 | $0 to $11,600 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $17,401 to $66,550 | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $66,551 to $100,525 | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,700 | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,701 to $609,350 | $243,726 to $365,600 |
| 37% | $609,351+ | $731,201+ | $609,351+ | $365,601+ |
Your filing status determines which column applies to you. Most people file as single or married filing jointly. Head of household status is available if you are unmarried and pay more than half the costs of maintaining a household for yourself and a dependent. Married filing separately is rarely used because it usually results in higher total tax.
These numbers are the ones the IRS published in October 2023 for the 2024 tax year. They will change again in January 2025 for the 2025 tax year.
Standard deduction and how it reduces your taxable income
Before you calculate which bracket you fall into, you subtract the standard deduction from your income. The standard deduction for 2024 is $14,600 for single filers, $29,200 for married filing jointly, and $21,900 for head of household. If your income is below the standard deduction for your filing status, you owe no federal income tax.
For example, if you are single and earn $20,000 in 2024, you subtract $14,600, leaving $5,400 of taxable income. You then apply the 10% bracket to that $5,400, resulting in $540 in federal income tax. You do not pay tax on the first $14,600 at all.
The standard deduction also increases each year for inflation. If you are 65 or older, the standard deduction is higher — an additional $1,850 for single filers and $1,500 for married filing jointly in 2024.
How tax withholding and estimated payments work
If you work as an employee, your employer withholds federal income tax from each paycheck based on the W-4 form you complete. The withholding is calculated using the 2024 tax brackets and your expected annual income. If you withhold too much, you get a refund when you file your return. If you withhold too little, you owe money.
If you are self-employed or have income that is not subject to withholding (such as rental income or investment income), you may need to make estimated tax payments four times a year. These payments are calculated using the same 2024 brackets and are due on April 15, June 17, September 16, and January 16 of the following year.
You can adjust your withholding at any time by submitting a new W-4 to your employer. If you expect your 2024 income to be significantly different from 2023, updating your W-4 can help you avoid a large refund or a large bill at tax time.
Long-term capital gains and may have access to dividends use different rates
Income from the sale of investments you held for more than one year (long-term capital gains) and certain dividends from stocks (may have access to dividends) are taxed at lower rates than ordinary income. The rates are 0%, 15%, or 20%, depending on your income and filing status. These rates are not the same as the ordinary income brackets.
For example, if you are single and your ordinary income is $50,000, you are in the 22% bracket. But if you also have $10,000 in long-term capital gains, that $10,000 is not taxed at 22% — it is taxed at 15% (or possibly 0%, depending on the exact thresholds). This preferential treatment is one reason investment income is often taxed more lightly than wages.
Frequently Asked Questions
Do I pay 37% on all my income if I am in the top bracket?
No. You only pay 37% on the portion of your income that falls into the 37% bracket. All the income below that threshold is taxed at the lower rates for each bracket. This is why your effective tax rate (what you actually pay on average) is always lower than your marginal rate (the highest bracket you reach).
Will the 2024 tax brackets change before the end of the year?
No. The IRS sets the brackets in January each year and they remain fixed for the entire year. The brackets for 2025 will be announced in October 2024. Your employer and tax software will use the 2024 brackets for all income earned in 2024, regardless of when you file your return.
Why are the 2024 brackets different from 2023?
The IRS adjusts the brackets each year based on inflation. In 2024, inflation caused the brackets to shift upward, meaning higher income thresholds for each rate. This is called bracket creep adjustment and prevents inflation from pushing people into higher tax brackets even if their real income (adjusted for inflation) stayed the same.
What if I have both W-2 income and self-employment income?
You combine all your income and apply the brackets to the total. If you are self-employed, you also pay self-employment tax (Social Security and Medicare tax) on top of income tax. The income tax brackets apply to your net self-employment income after you deduct the self-employment tax deduction, which is half of what you owe in self-employment tax.
Do state and local taxes use the same brackets as federal tax?
No. Each state sets its own tax brackets and rates, and they are different from the federal brackets. Some states have no income tax at all. Local taxes (city or county) vary by location. You pay federal tax, state tax (if applicable), and local tax (if applicable) separately, and they do not affect each other.