Explanation of Tax Brackets for 2024
Tax brackets indicate the percentage you’ll pay in taxes on each portion of your income. For instance, a single taxpayer who earns $100,000 in 2024 will have a top marginal tax rate of 24%, whereas in 2023, their top marginal tax rate is 32%. But it will take more income to reach each higher band of taxation.
Tax Brackets for Tax Year 2024
- Single Individuals:
- 10%: Taxable income up to $11,600
- 12%: Taxable income over $11,600
Standard Deductions and Other Limits
- The 2024 tax year standard deductions will increase to $29,200 for married couples filing jointly, up $1,500 from $27,700 for the 2023 tax year.
- The maximum HSA contribution for 2024:
- Self-only coverage: $4,150
- Family coverage: $8,300
AMT Thresholds Adjustment for 2024
The alternative minimum tax, or AMT, establishes a base tax rate for all earners. For 2024, the exemption amounts and the income level at which the exemption begins to phase out, will be adjusted.