Tax-Savvy_Flipbook_2024

Making Sense of Tax Rates Source: Internal Revenue Service, 2023 2024 Tax Tables Tax rate 10% Up to $11,600 Up to $23,200 12% Over $11,600 up to $47,150 Over $23,200 up to $94,300 22% Over $47,150 up to $100,525 Over $94,300 up to $201,050 24% Over $100,525 up to $191,950 Over $201,050 up to $383,900 32% Over $191,950 up to $243,725 Over $383,900 up to $487,450 35% Over $243,725 up to $609,350 Over $487,450 up to $731,200 37% Over $609,350 Over $731,200 Joint filers Single filers Income tax brackets and income thresholds Whether you are finalizing a yearly tax return or making key financial decisions, you might consider the difference between marginal and effective tax rates. The United States has a progressive tax system, whichmeans that tax rates increase as household income rises (see below). For example, if a married couple files jointly and has a taxable income of $100,000 in 2024 (after applicable deductions and exemptions), they fall into the 22% tax bracket. However, they will not pay this rate on all of their income, only on the amount over $94,300. In this case, 22% is their marginal tax rate or top tax rate.

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