Tax Brackets And Federal Income Tax Rates 2023 - 2024
For the 2023-2024 tax years, the U.S. federal income tax rates remain unchanged, with seven brackets ranging from 10% to 37%, based on your filing status and taxable income.
Updated Nov 24, 2023
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What Are the Tax Brackets?
Tax brackets are a fundamental component of the United States' progressive tax system, designed by the IRS to apply higher tax rates to increasing levels of income. These brackets establish the thresholds at which different tax rates come into play, shaping the overall structure of income tax. As your taxable income rises, you move into higher tax brackets, leading to a higher percentage of your income being owed to the IRS.
The tax you owe is directly tied to your income level. As your taxable income increases, so does the amount you are required to pay in taxes. Understanding the tax brackets is essential for taxpayers to calculate their tax liability accurately and plan their financial strategies accordingly. The progressive nature of these brackets aims to distribute the tax burden based on an individual's ability to pay, with higher-income individuals facing higher tax rates.
Tax Brackets and Federal Income Tax Rates 2023 - 2024
For the 2024 tax year, the IRS has introduced adjustments to account for inflation, impacting the tax brackets used to determine income tax rates. While the actual income tax rates will remain consistent, changes in the tax brackets dictate how various levels of income are taxed at progressively increasing rates. Understanding these brackets is crucial for individuals to estimate their tax liability accurately.
To assist taxpayers in navigating the tax system, the IRS provides updated tax brackets for both the 2023 and 2024 tax years. These brackets define the ranges of income subject to different tax rates, offering a guide for individuals to calculate their income tax obligations. Familiarizing oneself with the applicable tax bracket is essential for accurate tax planning and compliance with the progressive structure of the U.S. income tax system.
2023 Tax Brackets (Taxes Due in April 2024)
The 2023 tax brackets, affecting taxes due in April 2024, determine how much income tax you owe based on your earnings. The brackets consist of different income ranges, each with its own tax rate. Understanding these brackets helps you calculate and plan for the taxes you'll need to pay next year.
2023 Tax Brackets: Single Filer
|
Taxable Income Range |
Tax Due |
|
Not over $11,000 |
10% of taxable income |
|
Over $11,000 but not over $44,725 |
$1,100 plus 12% of the excess over $11,000 |
|
Over $44,725 but not over $95,375 |
$5,147 plus 22% of the excess over $44,725 |
|
Over $95,375 but not over $182,100 |
$16,290 plus 24% of the excess over $95,375 |
|
Over $182,100 but not over $231,250 |
$37,104 plus 32% of the excess over $182,100 |
|
Over $231,250 but not over $578,125 |
$52,832 plus 35% of the excess over $231,250 |
|
Over $578,125 |
$174,238.25 plus 37% of the excess over $578,125 |
2023 Tax Brackets: Married Filing Separately
|
Taxable Income Range |
Tax Due |
|
Not over $11,000 |
10% of taxable income |
|
Over $11,000 but not over $44,725 |
$1,100 plus 12% of the excess over $11,000 |
|
Over $44,725 but not over $95,375 |
$5,147 plus 22% of the excess over $44,725 |
|
Over $95,375 but not over $182,100 |
$16,290 plus 24% of the excess over $95,375 |
|
Over $182,100 but not over $231,250 |
$37,104 plus 32% of the excess over $182,100 |
|
Over $231,250 but not over $346,875 |
$52,832 plus 35% of the excess over $231,250 |
|
Over $346,875 |
$93,300.75 plus 37% of the excess over $346,875 |
2023 Tax Brackets: Head of Household
|
Taxable Income Range |
Tax Due |
|
Not over $15,700 |
10% of taxable income |
|
Over $15,700 but not over $59,850 |
$1,570 plus 12% of the excess over $15,700 |
|
Over $59,850 but not over $95,350 |
$6,868 plus 22% of the excess over $59,850 |
|
Over $95,350 but not over $182,100 |
$14,678 plus 24% of the excess over $95,350 |
|
Over $182,100 but not over $231,250 |
$35,498 plus 32% of the excess over $182,100 |
|
Over $231,250 but not over $578,100 |
$51,226 plus 35% of the excess over $231,250 |
|
Over $578,100 |
$172,623.50 plus 37% of the excess over $578,100 |
2023 Tax Brackets: Married Filing Jointly
|
Taxable Income Range |
Tax Due |
|
Not over $22,000 |
10% of taxable income |
|
Over $22,000 but not over $89,450 |
$2,200 plus 12% of the excess over $22,000 |
|
Over $89,450 but not over $190,750 |
$10,294 plus 22% of the excess over $89,450 |
|
Over $190,750 but not over $364,200 |
$32,580 plus 24% of the excess over $190,750 |
|
Over $364,200 but not over $462,500 |
$74,208 plus 32% of the excess over $364,200 |
|
Over $462,500 but not over $693,750 |
$105,664 plus 35% of the excess over $462,500 |
|
Over $693,750 |
$186,601.50 plus 37% of the excess over $693,750 |
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2024 Tax Brackets (Taxes Due in April 2025)
For the tax year 2024, and the subsequent return due in 2025, the federal tax structure will persist with its established seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your designated filing status and taxable income, encompassing wages, will determine the specific bracket applicable to your situation.
2024 Tax Brackets: Single Filer
|
2024 Tax Brackets: Single Filer |
Tax Due |
|
Not over $11,600 |
10% of taxable income |
|
Over $11,600 but not over $47,150 |
$1,160 plus 12% of the excess over $11,600 |
|
Over $47,150 but not over $100,525 |
$5,426 plus 22% of the excess over $47,150 |
|
Over $100,525 but not over $191,950 |
$17,168.50 plus 24% of the excess over $100,525 |
|
Over $191,950 but not over $243,725 |
$39,110.50 plus 32% of the excess over $191,150 |
|
Over $243,725 but not over $609,350 |
$55,678.50 plus 35% of the excess over $243,725 |
|
Over $609,350 |
$183,647.25 plus 37% of the excess over $609,350 |
2024 Tax Brackets: Married Filing Separately
|
2024 Tax Brackets: Married Filing Separately |
Tax Due |
|
Not over $11,600 |
10% of taxable income |
|
Over $11,600 but not over $47,150 |
$1,160 plus 12% of the excess over $11,600 |
|
Over $47,150 but not over $100,525 |
$5,426 plus 22% of the excess over $47,150 |
|
Over $100,525 but not over $191,950 |
$17,168.50 plus 24% of the excess over $100,525 |
|
Over $191,950 but not over $243,725 |
$39,110.50 plus 32% of the excess over $191,150 |
|
Over $243,725 but not over $365,600 |
$55,678.50 plus 35% of the excess over $243,725 |
|
Over $365,600 |
$98,334.75 plus 37% of the excess over $365,600 |
2024 Tax Brackets: Head of Household
|
2024 Tax Brackets: Head of Household |
Tax Due |
|
Not over $16,550 |
10% of taxable income |
|
Over $16,550 but not over $63,100 |
$1,655 plus 12% of the excess over $16,550 |
|
Over $63,100 but not over $100,500 |
$7,241 plus 22% of the excess over $63,100 |
|
Over $100,500 but not over $191,950 |
$15,469 plus 24% of the excess over $100,500 |
|
Over $191,950 but not over $243,700 |
$37,417 plus 32% of the excess over $191,150 |
|
Over $243,700 but not over $609,350 |
$53,977 plus 35% of the excess over $243,700 |
|
Over $609,350 |
$181,954.50 plus 37% of the excess over $609,350 |
2024 Tax Brackets: Married Filing Jointly
|
2024 Tax Brackets: Married Filing Jointly |
Tax Due |
|
Not over $23,200 |
10% of taxable income |
|
Over $23,200 but not over $94,300 |
$2,320 plus 12% of the excess over $23,200 |
|
Over $94,300 but not over $201,050 |
$10,852 plus 22% of the excess over $94,300 |
|
Over $201,050 but not over $383,900 |
$34,337 plus 24% of the excess over $201,050 |
|
Over $383,900 but not over $487,450 |
$78,221 plus 32% of the excess over $383,900 |
|
Over $487,450 but not over $731,200 |
$111,357 plus 35% of the excess over $487,450 |
|
Over $731,200 |
$196,669.50 plus 37% of the excess over $731,200 |
How to Calculate Federal Income Tax Bracket?
To calculate your federal income tax bracket, you can follow these steps: Divide your income into portions that correspond to each applicable tax bracket, as each bracket has its own tax rate. Your filing status, such as single filer, married filing jointly, married filing separately, or head of household, determines the bracket you fall into.
Your marginal tax bracket is determined by the tax bracket into which the top portion of your income falls. This bracket represents your highest tax rate. Utilize a federal income tax bracket calculator to identify your marginal tax percentage based on your income and filing status.
Also Read >> How to Calculate Federal Income Tax Liability?
California Tax Brackets 2023-2024
The tax rate schedules presented below outline California's state tax rates and corresponding brackets that were applicable to income earned in 2022, as reported on 2023 tax returns. In the majority of counties, California state income tax filings for the 2022 tax year were required to be submitted by November 16, 2023.
Single or Married Filing Separately
|
Tax Rate |
Taxable Income Bracket |
Tax Owed |
|
1% |
$0 to $10,099 |
1% of taxable income |
|
2% |
$10,100 to $23,942 |
$100.99 plus 2% of the amount over $10,099 |
|
4% |
$23,943 to $37,788 |
$377.85 plus 4% of the amount over $23,942 |
|
6% |
$37,789 to $52,455 |
$931.69 plus 6% of the amount over $37,788 |
|
8% |
$52,456 to $66,295 |
$1,811.71 plus 8% of the amount over $52,455 |
|
9.3% |
$66,296 to $338,639 |
$2,918.91 plus 9.3% of the amount over $66,295 |
|
10.3% |
$338,640 to $406,364 |
$28,246.90 plus 10.3% of the amount over $338,639 |
|
11.3% |
$406,365 to $677,275 |
$35,222.58 plus 11.3% of the amount over $406,364 |
|
12.3% |
$677,276 or more |
$65,835.52 plus 12.3% of the amount over $677,275 |
Married Filing Jointly or Qualifying Widow(er)
|
Tax Rate |
Taxable Income Bracket |
Tax Owed |
|
1% |
$0 to $20,198 |
1% of taxable income |
|
2% |
$20,199 to $47,884 |
$201.98 plus 2% of the amount over $20,198 |
|
4% |
$47,885 to $75,576 |
$755.70 plus 4% of the amount over $47,884 |
|
6% |
$75,577 to $104,910 |
$1,863.38 plus 6% of the amount over $75,576 |
|
8% |
$104,911 to $132,590 |
$3,623.42 plus 8% of the amount over $104,910 |
|
9.3% |
$132,591 to $677,278 |
$5,837.82 plus 9.3% of the amount over $132,590 |
|
10.3% |
$677,279 to $812,728 |
$56,493.80 plus 10.3% of the amount over $677,278 |
|
11.3% |
$812,729 to $1,354,550 |
$70,445.15 plus 11.3% of the amount over $812,728 |
|
12.3% |
$1,354,551 or more |
$131,671.04 plus 12.3% of the amount over $1,354,550 |
Head of Household
|
Tax Rate |
Taxable Income Bracket |
Tax Owed |
|
1% |
$0 to $20,212 |
1% of taxable income |
|
2% |
$20,213 to $47,887 |
$202.12 plus 2% of the amount over $20,212 |
|
4% |
$47,888 to $61,730 |
$755.62 plus 4% of the amount over $47,887 |
|
6% |
$61,731 to $76,397 |
$1,309.34 plus 6% of the amount over $61,730 |
|
8% |
$76,398 to $90,240 |
$2,189.36 plus 8% of the amount over $76,397 |
|
9.3% |
$90,241 to $460,547 |
$3,296.80 plus 9.3% of the amount over $90,240 |
|
10.3% |
$460,548 to $552,658 |
$37,735.35 plus 10.3% of the amount over $460,547 |
|
11.3% |
$552,659 to $921,095 |
$47,222.78 plus 11.3% of the amount over $552,658 |
|
12.3% |
$921,096 or more |
$88,856.16 plus 12.3% of the amount over $921,095 |
How Do Tax Brackets Work?
Determining your tax liability involves more than simply comparing your income to the tax brackets outlined above. For instance, let's consider a scenario where you are single and your taxable income for the 2024 tax year is $75,000, placing you in the 22% marginal tax bracket. However, different portions of your income will be subject to varying tax rates, such as 10% and 12%.
As your income advances, distinct portions are taxed at increasing rates:
- The initial $9,950 is taxed at 10%, totaling $995.
- The subsequent $30,575 ($40,525 minus $9,950) is taxed at 12%, resulting in $3,669.
- The remaining $9,475 ($50,000 minus $40,525) is taxed at 22%, yielding $2,084.
- The total tax for your $50,000 income is the sum of these amounts: $995 + $3,669 + $2,084 = $6,748 (excluding any deductions applied to your taxes).
Read >> Does Colorado Have State Income Tax? Do I have to Pay Colorado State Income Tax?
How to Get Into a Lower Tax Bracket?
There are two main ways to lower your tax bracket in the U.S.: tax credits and tax deductions. Tax credits directly reduce your tax bill, while deductions decrease the amount of your income that gets taxed. Achieving a lower tax bracket in the United States primarily involves the following:
Tax Credits
Tax credits provide a direct reduction in your income tax bill, with each credit amounting to a dollar-for-dollar decrease. For instance, if your tax bill is $2,000 but you qualify for $500 in tax credits, your final bill decreases to $1,500. Various tax credits are available, including those for purchasing solar panels, adopting a child, education-related expenses, child care costs, and having children. Many states also offer additional tax credits.
Tax Deductions
Unlike tax credits, tax deductions work by reducing the portion of your income subject to taxation. If your deductions surpass the standard deduction for your filing status (which is $13,850 for taxes due in 2024 and $14,600 for 2025 tax filings), you can itemize those expenses to lower your taxable income. For example, if your medical expenses exceed 7.5% of your adjusted gross income in 2023, claiming them can effectively reduce your taxable income.
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Tax Brackets And Federal Income Tax Rates - FAQs
1. What are the federal income tax brackets for 2023-2024?
The tax brackets range from 10% to 37%, with seven progressive tiers based on your filing status and taxable income.
2. Are tax brackets the same for everyone?
No, tax brackets vary by filing status, such as single, married filing jointly, or head of household, impacting the applicable rates.
3. How do tax brackets work?
Tax brackets operate on a progressive system, with higher rates applied to increasing levels of income within specified brackets.
4. Can tax credits affect my tax bracket?
Tax credits directly reduce your tax bill but do not change your bracket; they provide a dollar-for-dollar reduction in taxes owed.
5. What is the difference between tax credits and deductions?
Tax credits lower your tax bill directly, while deductions reduce taxable income, potentially moving you into a lower bracket.
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