The IRS tax brackets are probably the misunderstood part of the tax code. Most people think that all of their income is taxed at the highest percentage that their income throws them into. This is not true. The income tax system in the United States is a progressive tax system. That means that different parts of your income is taxed at different rates.
One of the questions I often get is how will it affect my taxes if I take this much taxable income from a retirement account? Or how much in taxes will it cost me if I bring in this extra income? That is where understanding the tax tables come into play. It all starts with your filing status, because the first thing you have to do is figure out your taxable income.
For most people, under the current tax laws through 2025, your taxable income is the amount you made less your standard deduction. The standard deduction amounts will increase to $14,600 for individuals and married couples filing separately, representing an increase of $750 from 2023. Married couples filing jointly will see a deduction of $29,200, a boost of $1,500 from 2023, while heads of household will see a jump to $21,900 for heads of household, an increase of $1,100 from 2023.
So, if you are single and making $90,000 in 2024, your taxable income would be $75,400. Looking at the tax bracket chart, the first $11,600 is taxed at 10%, the amount between $11,601 and $47,150 would be taxed at 12%, and the amount over $47,150 would be taxed at 22%. Knowing how to read the tax brackets will allow you to figure out how extra income will be taxed.
The IRS tax brackets 2024:
| Tax Rate | Taxable Income (Single) | Taxable Income (Married Filing Jointly) |
|---|---|---|
| 10% | Not over $11,600 | Not over $23,200 |
| 12% | Over $11,600 but not over $47,150 | Over $23,200 but not over $94,300 |
| 22% | Over $47,150 but not over $100,525 | Over $94,300 but not over $201,050 |
| 24% | Over $100,525 but not over $191,950 | Over $201,050 but not over $383,900 |
| 32% | Over $191,950 but not over $243,725 | Over $383,900 but not over $487,450 |
| 35% | Over $243,725 but not over $609,350 | Over $487,450 but not over $731,200 |
| 37% | Over $609,350 | Over $731,200 |
| Tax Rate | Taxable Income (Married Filing Separately) | Taxable Income (Head of Household)) |
|---|---|---|
| 10% | Up to $11,600 | Not over $16,550 |
| 12% | Over $11,600 but not over $47,150 | Over $16,550 but not over $63,100 |
| 22% | Over $47,150 but not over $100,525 | Over $63,100 but not over $100,500 |
| 24% | Over $100,525 but not over $191,950 | Over $100,500 but not over $191,950 |
| 32% | Over $191,950 but not over $243,725 | Over $191,950 but not over $243,700 |
| 35% | Over $243,725 but not over $365,600 | Over $243,700 but not over $609,350 |
| 37% | Over $365,600 | Over $609,350 |