Current Tax rates
Current rates information provided by IRS
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%, and 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 remain 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 set up 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 taxpayer’s 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 | 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
| Filing Status | 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 are 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%, and 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 $11,000 | Up to $22,000 | Up to $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; $1,800 for married couples filing jointly. Personal exemptions for 2023 remain 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 set up 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 taxpayer’s 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 | 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) | $17,640 | $46,560 | $52,918 | $56,838 |
Filing Status – Married Filing Jointly
| Filing Status | 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 | $16,370 | $28,120 | $28,120 | $28,120 |
| Phaseout Ends (Credit Equals Zero) | $24,210 | $53,120 | $59,478 | $63,398 |
Qualified Business Income Deduction
Within the Tax Cuts and Jobs Act, there is an inclusion of a 20% deduction in 2023 for pass-through businesses with $182,100 of qualified business income for single taxpayers and $364,200 for married taxpayers filing jointly (SEE Table 6).
Table 6. 2023 Qualified Business Income Deduction Thresholds (Source: IRS)
| Filing Status | Threshold |
|---|---|
| Unmarried Individuals | $182,100 |
| Married Filing Jointly | $364,200 |
Child Tax Credit
The maximum Child Tax Credit for 2023 is $2,000 per qualifying child, with no adjustments for inflation. The amount that may be refunded for the Child Tax Credit is adjusted for inflation and increases from $1,500 to $1,600 in 2023.
2023 Annual Exclusion for Gifts
For 2023, the first $17,000 of gifts to any person is excluded from tax. Exclusions are increased to $175,000 from $164,000 for gifts to spouses who are not U.S. citizens.
2023 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. 2023 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% | $44,625 | $89,250 | $59,750 |
| 20% | $492,300 | $553,850 | $523,050 |