The Internal Revenue Service has released its individual income brackets for 2024.

Tax brackets are adjusted annually to address “bracket creep,” the name given to describe when inflation pushes taxpayers into higher income tax brackets or reduces the value of credits, deductions and exemptions without an increase in real income.

For tax year 2024 – for taxes payable in 2025 – the top tax rate remains 37% for individual single taxpayers with incomes or more than $609,350 or $731,200 for married couples. The lowest rate is 10% for single individuals with incomes of $11,600 or less or married couples earning $23,200 or less.

Other marginal tax rates are:

• 35% for incomes over $243,725 ($487,450 for married couples filing jointly)
• 32% for incomes over $191,950 ($383,900 for married couples filing jointly)
• 24% for incomes over $100,525 ($201,050 for married couples filing jointly)
• 22% for incomes over $47,150 ($94,300 for married couples filing jointly)
• 12% for incomes over $11,600 ($23,200 for married couples filing jointly)

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Changes to the standard deduction

The standard deduction, or the specific dollar amount that reduces the amount of income on which you’re taxed, is changing for 2024 as well.

For married couples filing jointly, the standard deduction will rise to $29,200, an increase of $1,500 from tax year 2023. For single taxpayers and married individuals filing separately, the standard deduction will rise to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.

Other changes

• The Earned Income Tax Credit for qualifying taxpayers with three or more children is increasing from $7,430 to $7,830.
• Starting in tax year 2024, the dollar limit for employee salary reductions for contributions to health flexible spending arrangements is going to  $3,200. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $640, an increase of $30.
• The annual exclusion for gifts increases to $18,000 for calendar year 2024, up from $17,000 for calendar year 2023.