While these rates stay the same for 2025, the income thresholds for each bracket will adjust for inflation. However, significant changes loom ahead—the Tax Cuts and Jobs Act of 2017 is set to expire at the end of 2025, which could substantially impact future tax rates.
Remember, your 2024 tax return is due April 15, 2025, with extensions available until October 15, 2025. If you're struggling with tax debt, our best tax relief services can help you navigate your options. In this article, we'll explore the current 2024 federal income tax brackets, compare them to 2023's rates, and look at what's changing for 2025.
Key Insights
- Federal income tax rates stay the same for 2024-2025, but brackets adjust for inflation in 2025.
- The U.S. tax system is progressive, with rates increasing as income rises through brackets.
- Deductions lower taxable income, while credits directly reduce taxes owed.
- The 2017 Tax Cuts and Jobs Act expires in 2025, potentially changing future rates and brackets.
What Are Tax Brackets and Tax Rates?
Tax brackets are income ranges that determine how much tax you pay. Your tax rate is the percentage you pay on the income within each bracket. Both depend on your filing status and annual income.
Here's how it works: As a single filer in 2024, your income from $11,601 to $47,150 is taxed at 12%. This is called being in the "12% tax bracket." But you won't pay 12% on all your income—only on the dollars within that range. Lower amounts are taxed at lower rates, and higher amounts are taxed at higher rates.
How Do Tax Brackets and Tax Rates Work?
The United States has a progressive tax system, which means tax rates increase as income rises. Tax brackets show exactly what rate applies to each level of income.
A progressive tax system means the more money you make, the higher your last tax dollar falls into. This ties directly into the marginal tax rate, which implies the sliding scale that a taxpayer 'progresses' up with more income.
The effective tax rate is the average rate the taxpayer pays. The progressive/marginal system can be viewed as buckets filled up, only increasing to a higher percentage once the previous income bracket is filled.
–Andrew Van Alstyne, Enrolled Agent and financial advisor at Fiduciary Financial Advisors.
For example, as a single filer in 2024, you'll pay:
10% on the first $11,600 of income
12% on income from $11,601 to $47,150
22% on income from $47,151 to $100,525
Important: Your tax bracket isn't your overall tax rate for the year—it's only the rate you pay on your highest income level. Most taxpayers have a lower "effective tax rate" (the average rate you actually pay) than their tax bracket suggests, since lower portions of income are taxed at lower rates.
Let’s look at how the federal tax brackets have evolved over the past few years — starting with 2023, followed by 2024, and then what’s changing in 2025.
2023 Federal Tax Brackets and Rates
Tax returns for 2023 were due on April 18, 2024, for most filers. If you secured an extension by tax day, your new federal filing deadline was Oct. 16, 2024. Here are the tax rates and income brackets for 2023:
| Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
| 10% | $0–$11,600 | $0–$23,200 | $0–$16,550 | $0–$11,600 |
| 12% | $11,601–$47,150 | $23,201–$94,300 | $16,551–$63,100 | $11,601–$47,150 |
| 22% | $47,151–$100,525 | $94,301–$201,050 | $63,101–$100,500 | $47,151–$100,525 |
| 24% | $100,526–$191,950 | $201,051–$383,900 | $100,501–$191,950 | $100,526–$191,950 |
| 32% | $191,951–$243,725 | $383,901–$487,450 | $191,951–$243,700 | $191,951–$243,725 |
| 35% | $243,726–$609,350 | $487,451–$731,200 | $243,701–$609,350 | $243,726–$365,600 |
| 37% | $609,351+ | $731,201+ | $609,351+ | $365,601+ |
2024 Federal Tax Brackets and Rates
The 2024 tax brackets and income tax rates apply to income earned in 2024 and will be reported on your tax return filed in early 2025.
| Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
| 10% | $0–$11,600 | $0–$23,200 | $0–$16,550 | $0–$11,600 |
| 12% | $11,601–$47,150 | $23,201–$94,300 | $16,551–$63,100 | $11,601–$47,150 |
| 22% | $47,151–$100,525 | $94,301–$201,050 | $63,101–$100,500 | $47,151–$100,525 |
| 24% | $100,526–$191,950 | $201,051–$383,900 | $100,501–$191,950 | $100,526–$191,950 |
| 32% | $191,951–$243,725 | $383,901–$487,450 | $191,951–$243,700 | $191,951–$243,725 |
| 35% | $243,726–$609,350 | $487,451–$731,200 | $243,701–$609,350 | $243,726–$365,600 |
| 37% | $609,351+ | $731,201+ | $609,351+ | $365,601+ |
2025 Federal Tax Brackets and Rates
The IRS just announced the new tax brackets and rates for 2025. These income brackets were adjusted for inflation—so they are slightly higher than in 2024:
| Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
| 10% | $0–$11,925 | $0–$23,850 | $0–$17,000 | $0–$11,925 |
| 12% | $11,926–$48,475 | $23,851–$96,950 | $17,001–$64,850 | $11,926–$48,475 |
| 22% | $48,476–$103,350 | $96,951–$206,700 | $64,851–$103,350 | $48,476–$103,350 |
| 24% | $103,351–$197,300 | $206,701–$394,600 | $103,351–$197,300 | $103,351–$197,300 |
| 32% | $197,301–$250,525 | $394,601–$501,050 | $197,301–$250,525 | $197,301–$250,500 |
| 35% | $250,526–$626,350 | $501,051–$751,600 | $250,526–$375,800 | $250,501–$626,350 |
| 37% | $626,351+ | $751,601+ | $375,801+ | $626,351+ |
How to Reduce Taxes Owed
There are several proven strategies to reduce your tax bill, with tax deductions and tax credits being the main way to lower your taxes owed for the year. Here’s how they work:
Tax deductions: These lower your taxable income and may even drop you into a lower tax bracket. Some deductions can be taken yearly, and some only apply if you itemize your tax deductions. Common deductions include retirement account contributions, student loan interest, mortgage interest, and state taxes paid.
Tax credits: Tax credits directly reduce what you owe dollar-for-dollar, making them typically more valuable than deductions. Common tax credits include the child tax credit, earned income tax credit, and the American opportunity tax credit.
If you’re a small business owner, you can also lower your taxes owed by deducting business expenses or incorporating your business to lower your self-employment taxes owed.
Bottom Line
Your income and tax filing status determine your tax bracket and rate, but being in a higher bracket doesn't mean all your income is taxed at that rate. You'll pay different rates as your income moves through each bracket. While tax deductions and credits can help lower your bill, tax law can be complex.
Consider working with a licensed tax professional (like an Enrolled Agent or CPA) to avoid costly mistakes and maximize your savings. If you're facing tax challenges, our recommended tax relief service providers can help you explore your options and find the best path forward.
