Taxes 2024: IRS Increases Tax Deductions $1,500 To Adjust for Inflation
The Internal Revenue Service (IRS) announced its annual inflation adjustments for tax year 2024 on Nov. 9.
As Axios reported: “By adjusting the tax brackets — as the IRS does every year — it is attempting to stop ‘bracket creep,’ which happens when inflation pushes taxpayers into a higher income tax bracket without an increase in real income.”
And as The Wall Street Journal indicated, the standard deduction and thresholds for each tax bracket are up 5.4%, the second largest adjustment in the last three decades after last year’s 7.1% increase.
The tax year 2024 adjustments apply to income tax returns filed in 2025, the IRS said in an announcement.
Tax Deductions For the 2024 Tax Year
- The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023.
- For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023.
- For heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.
Tax Brackets For Tax Year 2024
For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).
The other rates are:
- 35% for incomes over $243,725 ($487,450 for married couples filing jointly).
- 32% for incomes over $191,950 ($383,900 for married couples filing jointly).
- 24% for incomes over $100,525 ($201,050 for married couples filing jointly).
- 22% for incomes over $47,150 ($94,300 for married couples filing jointly).
- 12% for incomes over $11,600 ($23,200 for married couples filing jointly).
The lowest rate is 10% for incomes of single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly).
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