2024 Tax Updates: Inflation Adjustments Compared to 2023

Here’s a breakdown of the key inflation adjustments for the 2024 tax year, presented side-by-side with 2023 values for easy comparison.

Standard Deductions:

The standard deduction amounts have increased across all filing statuses: 

Filing Status 2023 2024   

Single $13,850 $14,600

Married Filing Jointly $27,700 $29,200

Head of Household $20,800 $21,900

Married Filing Sep. $13,850 $14,600

Federal Income Tax Brackets

Below are the tax brackets for both 2023 and 2024, with income thresholds adjusted for inflation.

For Single Filers:

Tax Rate 2023 Taxable Income 2024 Taxable Income      

10% $0 to $11,000 $0 to $11,600

12% $11,000 to $44,725 $11,600 to $47,150

22% $44,725 to $95,375. $47,150 to $100,525

24% $95,375 to $182,100 $100,525 to $191,950

32% $182,100 to $231,250 $191,950 to $243,725

35% $231,250 to $578,125 $243,725 to $609,350

37% Over $578,125 Over $609,350

For Married Filing Jointly:

Tax Rate 2023 Taxable Income. 2024 Taxable Income  

10% $0 to $22,000 $0 to $23,200

12% $22,000 to $89,450 $23,200 to $94,300

22% $89,450 to $190,750 $94,300 to $201,050

24% $190,750 to $364,200 $201,050 to $383,900

32% $364,200 to $462,500 $383,900 to $487,450

35% $462,500 to $693,750 $487,450 to $731,200

37% Over $693,750 Over $731,200

Retirement Contribution Limits:

Retirement contribution limits for popular accounts have also increased in 2024: 

Account Type 2023 Limit 2024 Limit

401(k), 403(b), Thrift Savings Plan $22,500 $23,000

Individual Retirement Account (IRA) $6,500 $7,000

Catch-Up Contribution (Age 50+) for 401(k) $7,500 $8,000

Catch-Up Contribution (Age 50+) for IRA $1,000 $1,000

These inflation adjustments provide valuable opportunities to optimize tax strategies for the coming year. For guidance on how these changes impact your tax planning, please reach out.