The Internal Revenue Service (IRS) makes yearly adjustments on several tax provisions to mitigate the effect of inflation. Last November 9, 2023, the IRS released the yearly inflation adjustments under Revenue Procedure 2023-34. Listed below are some of its highlights.
2024 Tax Table
One of the adjustments is the updated income tax margins for the year 2024 (for 2025 filing):
| Tax Rate | For Dollar ($) Taxable Income Over | |||
| Married Filing Jointly / Surviving Spouses | Married Filing Separately | Head of Households | Single Filers | |
| 10% | 0 | 0 | 0 | 0 |
| 12% | 23,200 | 11,600 | 16,550 | 11,600 |
| 22% | 94,300 | 47,150 | 63,100 | 47,150 |
| 24% | 201,050 | 100,525 | 100,500 | 100,525 |
| 32% | 383,900 | 191,950 | 191,950 | 191,950 |
| 35% | 487,450 | 243,725 | 243,700 | 243,725 |
| 37% | 731,200 | 365,600 | 609,350 | 609,350 |
Note that the lowest tax rate of 10% shall be applied to income earned below the dollar margin for the 12% bracket.
Standard Deduction
Another IRS adjustment is the increase in the standard deduction for the year 2024. The amount of standard deduction depends on your filing status, age, if you’re blind, or if someone can claim you as their dependent. In general, below is the 2024 standard deduction based on your filing status:
| Filing Status | Standard Deduction |
| Married Filing Jointly / Surviving Spouses | $29,200 |
| Married Filing Separately | $14,600 |
| Head of Households | $21,900 |
| Single Filers | $14,600 |
Capital Gains Tax
The long-term capital gain margins are also adjusted for the year 2024.
| Filing Status | 0% | 15% | 20% |
| Married Filing Jointly / Surviving Spouses | $0 to $94,050 | $94,051 to $583,750 | Over $583,750 |
| Married Filing Separately | $0 to $47,025 | $47,026 to $291,850 | Over $291,850 |
| Head of Households | $0 to $63,000 | $63,001 to $551,350 | Over $551,350 |
| Single Filers | $0 to $47,025 | $47,026 to $518,900 | Over $518,900 |
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