2024 Tax Brackets: IRS Increases Income Thresholds, Standard Deduction Due to Inflation
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Inflation has eaten into Americans' wallets throughout this year, and the IRS is making changes to its federal income tax bracket thresholds as a result.
The IRS revealed its tax inflation adjustments on Thursday for the 2024 tax year. That means these aren't the rates tied to income taxes you'll pay this upcoming filing season (those are technically your 2023 taxes) — these are the rates you will pay in 2025 based on the amount you earn next year.
Tax bracket adjustments are made every year by the IRS; they're announced in the fall alongside changes to other tax provisions and standard deductions. Inflation hasn't been quite as bad this year as it was last year — it peaked at 9.1% in June 2022 and now has hit 3.7% — but the income thresholds are still getting a sizable bump.
