What Tax Bracket am I In, and How Much is the Standard Deduction?
The 2025 tax filing season is officially underway, so it’s time to get familiar with how the government figures out what you owe. Every year, the IRS adjusts income thresholds for the various tax brackets to keep up with inflation. For the 2024 tax year (meaning taxes due this year in 2025), the IRS bumped up the threshold for each tax bracket by about 5.4%. So, if your salary hasn’t exactly kept pace with inflation, you might find yourself paying a little less this year.Another thing to note: the standard deduction is higher for 2024, rising by $750 from last year. This means you can lower your taxable income by an even bigger amount when filing your taxes.
How do federal income taxes work?
Federal income taxes are based on a progressive system, meaning the more you earn, the higher the percentage you pay. Taxes are divided into “brackets” or layers, and each layer is taxed at a different rate. Right now, the U.S. has seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.A common misconception is that once your income hits a higher tax bracket, the whole income is taxed at that higher rate. Not so! You only pay the higher rate on the portion of your income that falls into that bracket. For example, if you’re a single filer making $58,000, you would pay 10% on the first $11,600, 12% on the next chunk up to $47,150, and 22% on the rest, up to $58,000.
What are the tax brackets for 2024?
The tax brackets themselves haven’t changed since 2018, thanks to the Tax Cuts and Jobs Act, but the income thresholds do adjust each year for inflation. For 2024, the thresholds are about 5.4% higher than the previous year. Here are the 2024 income tax brackets for single and married filers:For Single Filers:
- 10%: Up to $11,600
- 12%: Up to $47,150
- 22%: Up to $100,525
- 24%: Up to $191,950
- 32%: Up to $243,725
- 35%: Up to $609,350
- 37%: $609,350 and above
For Married, Joint Filers:
- 10%: Up to $23,200
- 12%: Up to $94,300
- 22%: Up to $201,050
- 24%: Up to $383,900
- 32%: Up to $487,450
- 35%: Up to $731,200
- 37%: $731,200 and above
What do you need to file your taxes?
Your filing status also plays a big role in determining how much tax you owe. Whether you file as single, married, head of household, etc., impacts where you land in the tax brackets. Also, keep in mind that your taxable income is what’s left after you subtract your deductions (either the standard deduction or itemized deductions).
For reference, here are the standard deductions for 2024:
- Single or Married Filing Separately: $14,600
- Head of Household: $21,900
- Married Filing Jointly or Qualifying Surviving Spouse: $29,200
When will I get my tax refund?
If you’re due for a refund, the IRS typically issues it within 21 days if you file electronically and choose direct deposit. Paper returns, though, can take a bit longer. You can always check the status of your refund using the “Where’s My Refund?” tool on the IRS website.And don’t forget—the federal filing deadline (aka Tax Day) is Tuesday, April 15, 2025, so be sure to get everything in on time!