2024 Tax Bracket Changes: Essential Information

The Internal Revenue Service has announced that tax brackets will be adjusted in 2024 to account for inflation, with an increase of 5.4%. This is intended to prevent "bracket creep" and ensure that taxpayers are not pushed into higher tax brackets without an increase in real income. The federal income tax will continue to have seven rates, ranging from 10% to 37%. The new tax brackets will apply for taxes paid in 2025.