By Joe Bishop-Henchman
Each year, federal income tax brackets, the standard deduction, and other parts of the tax code are adjusted for inflation.
Below are the tax brackets for income earned in 2023, which taxpayers file a return for in 2024. Taxable income equals adjusted gross income minus deductions or exemptions. One common deduction taken by most taxpayers is the standard deduction, which in 2023 is $13,850 for single filers and married filing separately, $27,700 for married filing jointly, and $20,800 for heads of household filers.
2023 Tax Brackets (which taxpayers file a return for in 2024)
Tax Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
10% | Up to $11,000: 10% of taxable income | Up to $22,000: 10% of taxable income | Up to $15,700: 10% of taxable income | Up to $11,000: 10% of taxable income |
12% | 12% on taxable income over $11,000, plus $1,100 | 12% on taxable income over $22,000, plus $2,200 | 12% on taxable income over $15,700, plus $1,570 | 12% on taxable income over $11,000, plus $1,100 |
22% | 22% on taxable income over $44,725, plus $5,147 | 22% on taxable income over $89,450, plus $10,294 | 22% on taxable income over $59,850, plus $6,868 | 22% on taxable income over $44,725, plus $5,147 |
24% | 24% on taxable income over $95,375, plus $16,290 | 24% on taxable income over $190,750, plus $32,580 | 24% on taxable income over $95,350, plus $14,678 | 24% on taxable income over $95,375, plus $16,290 |
32% | 32% on taxable income over $182,100, plus $37,104 | 32% on taxable income over $364,200, plus $74,208 | 32% on taxable income over $182,100, plus $35,498 | 32% on taxable income over $182,100, plus $37,104 |
35% | 35% on taxable income over $231,250, plus $52,832 | 35% on taxable income over $462,500, plus $105,664 | 35% on taxable income over $231,250, plus $51,226 | 35% on taxable income over $231,250, plus $52,832 |
37% | 37% on taxable income over $578,125, plus $175,238.25 | 37% on taxable income over $693,750, plus $186,601.50 | 37% on taxable income over $578,100, plus $172,623.50 | 37% on taxable income over $346,875, plus $93,300.75 |
Other key adjustments for tax year 2023 include:
- 401(k) contribution limit is $22,500 for employee contributions. Catch-up contribution limit for age 50 or over is $7,500.
- Flexible Spending Account (FSA) contribution limit is $3,050, and maximum carryover amount is $610.
- Health Spending Account (HSA) contribution limit is $3,850 for self-only and $7,750 for family.
- Alternative Minimum Tax (AMT) exemption amount is $81,300 ($126,500 for married filing jointly) and begins to phase out at $578,150 ($1,156,300 for married filing jointly).
- Earned Income Tax Credit (EITC) maximum amount is $7,430.
- Qualified Transportation Fringe amount is $300 per month.
- Foreign earned income exclusion is $120,000.
- Estate tax exclusion amount is $12,920,000.
- The gift tax exclusion is $17,000.
2024 Tax Brackets (which taxpayers will file a return for in 2025)
Tax Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
10% | Up to $11,600: 10% of taxable income | Up to $23,200: 10% of taxable income | Up to $16,550: 10% of taxable income | Up to $11,600: 10% of taxable income |
12% | 12% on taxable income over $11,600, plus $1,160 | 12% on taxable income over $23,200, plus $2,320 | 12% on taxable income over $16,550, plus $1,655 | 12% on taxable income over $11,600, plus $1,160 |
22% | 22% on taxable income over $47,150, plus $5,426 | 22% on taxable income over $94,300, plus $10,854 | 22% on taxable income over $63,100, plus $7,241 | 22% on taxable income over $47,150, plus $5,426 |
24% | 24% on taxable income over $100,525, plus $17,168.50 | 24% on taxable income over $201,050, plus $34,337 | 24% on taxable income over $100,500, plus $15,469 | 24% on taxable income over $100,525, plus $17,168.50 |
32% | 32% on taxable income over $191,950, plus $39,110.50 | 32% on taxable income over $383,900, plus $78,221 | 32% on taxable income over $191,950, plus $37,417 | 32% on taxable income over $191,950, plus $39,110.50 |
35% | 35% on taxable income over $243,725, plus $55,679 | 35% on taxable income over $487,450, plus $111,357 | 35% on taxable income over $243,700, plus $53,977 | 35% on taxable -income over $243,725, plus $55,678.50 |
37% | 37% on taxable income over $609,350, plus $183,647 | 37% on taxable income over $731,200, plus $196,669.50 | 37% on taxable income over $609,350, plus $181,955 | 37% on taxable income over $365,600, plus $98,334.75 |
The 2024 standard deduction will rise to $14,600 for single filers and married filing separately, $29,200 for married filing jointly, and $21,900 for heads of household filers.
Other key adjustments for tax year 2024 include:
- 401(k) contribution limit is $23,000 for employee contributions. Catch-up contribution limit for age 50 or over is $7,500.
- Flexible Spending Account (FSA) contribution limit is $3,200, and maximum carryover amount is $640.
- Health Spending Account (HSA) contribution limit is $4,150 for self-only and $8,300 for family.
- Alternative Minimum Tax (AMT) exemption amount is $85,700 ($133,300 for married filing jointly) and begins to phase out at $609,350 ($1,218,700 for married filing jointly).
- Earned Income Tax Credit (EITC) maximum amount is $7,830.
- Qualified Transportation Fringe amount is $315 per month.
- Foreign earned income exclusion is $126,500.
- Estate tax exclusion amount is $13,610,000.
- The gift tax exclusion is $18,000.
The deadline for filing 2023 taxes, paying any tax owed, or requesting an extension is Monday, April 15, 2024.