# The IRS has updated its tax brackets. Where do you fit this year?

## The 7 tax brackets increased their thresholds again this year in response to inflation

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The Internal Revenue Service has published its tax bracket updates for the coming year, which were crafted in response to inflation.

The CPI, or Consumer Price Index, is used by the government to measure inflation. Inflation is the percentage increase between the CPI at two different points in time. Thus, a big jump in the CPI means high inflation, per the Bureau of Labor Statistics.

The CPI rose 3.2% from July 2022 to July 2023, according to the Bureau.

The following are the federal tax thresholds for 2024 for single individuals, per the IRS. The tax threshold increased 5.2% from the previous year for incomes up to \$47,150 and increased 5.4% for incomes over that amount.

• If the taxable income is not over \$11,600, then the tax is 10%.
• If the taxable income is over \$11,600 but under \$47,150, then the tax is \$1,160 plus 12% of the excess over \$11,600.
• If the taxable income is over \$47,150 but under \$100,525, then the tax is \$5,426 plus 22% of the excess over \$47,150.
• If the taxable income is over \$100,525 but under \$191,950, then the tax is \$17,168.50 plus 24% of the excess over \$100,525.
• If the taxable income is over \$191,950 but under \$243,725, then the tax is \$39,110.50 plus 32% of the excess over \$191,150.
• If the taxable income is over \$243,725 but under \$609,350, then the tax is \$55,678.50 plus 35% of the excess over \$243,725.
• If the taxable income is over \$609,350, then the tax is \$183,647.25 plus \$37% of the excess over 609,350.

Tax rates and thresholds for married couples in 2024 filing jointly increased by roughly 5.4% compared to 2023.

The following are the 2024 tax requirements for married couples:

• If the taxable income is not over \$23,200, the the tax is 10%.
• If the taxable income is over \$23,200 but under \$94,300, then the tax is \$2,320 plus 12% of the excess over \$23,200.
• If the taxable income is over \$94,300 but under \$201,050, then the tax is \$10,852 plus 22% of the excess over \$94,000.
• If the taxable income is over \$201,050 but under \$383,900, then the tax is \$34,337 plus 24% of the excess over \$201,050.
• If the taxable income is over \$383,900 but under \$487,450, then the tax is \$78,221 plus 32% of the excess over \$383,900.
• If the taxable income is over \$487,450 but under \$731,200, then the tax is \$111,357 plus 35% of the excess over \$487,450.
• If the taxable income is over \$731,200, then the tax is \$196,669.50 pus 37% of the excess over \$731,200.

The IRS also made other adjustments due to inflation. For example, the Earned Income Tax Credit increased by \$400 for taxpayers with “three or more qualifying children” and the maximum contribution limit to health flexible spending arrangements increased to \$3,200.

### Last year’s changes

The U.S. Consumer Price Index, or CPI, increased 8.5% from July 2021 to July 2022, the Bureau of Labor Statistics reported. In response to that high CPI change, tax thresholds rose roughly 7% across the board in the 2022-2023 adjustment.

The following are the 2023 tax requirements for single individuals, per the IRS.

• If the taxable income is under \$11,000, the the tax is 10%.
• If the taxable income is over \$11,000 but under \$44,725, then the tax is \$1,100 plus 12% of the excess over \$11,000.
• If the taxable income is over \$44,725 but under \$95,375, then the tax is \$5,147 plus 22% of the excess over \$44,725.
• If the taxable income is over \$95,375 but under \$182,100, then the tax is \$16,290 plus 24% of the excess over \$95,375.
• If the taxable income is over \$182,100 but under \$231,250, then the tax is \$37,104 plus 32% of the excess over \$182,100.
• If the taxable income is over \$231,250 but under \$578,125, then the tax is \$52,832 plus 35% of the excess over \$231,250.
• If the taxable income is over \$578,125, then the tax is \$174,238.25 plus \$37% of the excess over \$578,125.