Inflation Adjustment for Tax Year 2024

By: Vivek Patel 

As we approach 2024, the United States Internal Revenue Service (IRS) has provided tax inflation adjustment information for tax year 2024. Standard deduction and Marginal rates are a key aspect of the U.S. tax code, playing a vital role in calculating taxable income.

The changes for the 2024 tax year will affect tax returns filed in 2025.

The below table summarizes the standard deduction amounts for different filing statuses for the tax year 2024. 

Filing Status	Standard Deduction (2024)	Increase from 2023
Married Filing Jointly	$29,200	+$1,500
Single	$14,600	+$750
Married Filing Separately	$14,600	+$750
Head of Household	$21,900	+$1,100

Tax Year 2024 Marginal Rates Overview:
 

Top Tax Rate: 37%

•  Individual Single Taxpayers: Incomes over $609,350
•  Married Couples Filing Jointly: Incomes over $731,200
   

 Other Rates:

•  35% for incomes over $243,725 (Married couples filing jointly at $487,450)
•  32% for incomes over $191,950 ( Married couples filing jointly at $383,900)
•  24% for incomes over $100,525 (Married couples filing jointly at $201, 050)
•  22% for incomes over $47,150  (Married couples filing jointly at $94,300)
•  12% for incomes over $11,600 (Married couples filing jointly at $23,200)
   

 Lowest Rate: 10%

•  Individual Single Taxpayers: Incomes of $11,600 or less.
•  Married Couples Filing Jointly: Incomes of $23,200 or less.

 

Understanding these rates is essential for effective tax planning in the upcoming year. As we traverse through the tax brackets, other rates come into play, ranging from 37% for specific income thresholds down to 10% for the lowest incomes. Being mindful of these rates is not just a matter of compliance; it's a strategic approach to financial planning. Whether you're a single taxpayer, part of a married couple, or fall into the lowest income brackets, understanding these rates empowers you to make informed decisions, optimize deductions, and ultimately navigate the tax landscape with confidence. For help understanding the rates, filing your taxes, or specific questions related to your filing, contact the trusted Chugh, LLP accounting team.