Federal Income Tax Rates

Your Guide to Federal Tax Rates: What You Need to Know

Understanding federal tax rates is essential for planning your finances, filing your taxes, and ensuring you’re meeting your tax obligations. Federal income tax rates in the United States are progressive, meaning the more you earn, the higher percentage of your income you’ll pay in taxes. This guide provides an overview of federal tax rates, how they work, and what you need to consider for the current tax year.

How Federal Tax Rates Work

Federal income tax rates are divided into tax brackets based on your filing status and taxable income. The brackets outline the percentage of tax owed on different portions of your income. For example, the first portion of your income falls into the lowest tax bracket, and any income beyond that threshold is taxed at the next rate, and so on.

The IRS adjusts tax brackets annually to account for inflation, so it’s important to stay up-to-date on the latest figures. Your filing status—whether you’re single, married filing jointly, married filing separately, or head of household—also determines which tax brackets apply to you.

Why Do Federal Income Tax Rates Change Each Year?

The reason lies in a tax code provision called indexing, designed to adjust tax brackets and other tax provisions annually to account for inflation. This ensures that taxpayers aren’t unfairly impacted by rising costs of living.

How Indexing Works

Each year, the IRS adjusts over 60 tax provisions, including income tax brackets, deductions, and credit values, to account for inflation and prevent a phenomenon known as “bracket creep.” Bracket creep happens when inflation pushes taxpayers into higher tax brackets or reduces the value of deductions and credits, even if their purchasing power hasn’t increased.

The Role of Inflation Measures

Before 2018, the IRS relied on the Consumer Price Index (CPI) to measure inflation. However, the Tax Cuts and Jobs Act of 2017 (TCJA) introduced the Chained Consumer Price Index (C-CPI) as the new standard. The C-CPI accounts for changes in consumer spending habits and generally grows more slowly than the traditional CPI. This shift results in smaller adjustments to tax brackets, deductions, and credits over time.

2024 Federal Income Tax Brackets

Here are the 2024 Federal Income Tax Rates. They are the tax brackets for your income earned in 2024 (which will be filed on your 2024 tax return due on April 2025).

Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
10% Up to $11,000 Up to $22,000 Up to $11,000 Up to $15,700
12% $11,000 - $44,725 $22,000 to $89,450 $11,000 - $44,725 $15,700 - $59,850
22% $44,725 - $95,375 $89,450 to $190,750 $44,725 - $95,375 $59,850 to $95,350
24% $95,375 to $182,100 $190,750 to $364,200 $95,375 to $182,100 $95,350 to $182,100
32% $182,100 - $231,250 $364,200 to $462,500 $182,100 - $231,250 $182,100 to $231,250
35% $231,250 - $578,125 $462,500 to $693,750 $231,250 - $578,125 $231,250 to $578,100
37% Over $578,125 Over $693,750 Over $578,125 Over $578,100

2024 Standard Deduction Amount & Exemptions

Filing Status Deduction Amount
Single $13,850
Married Filing Separately $13,850
Married Filing Jointly $27,700
Head of Household $20,800
Qualifying Surviving Spouse $27,700

Earned Income Tax Credit (EITC)

The maximum EITC amount depends on the number of qualifying children. Below are the maximum amounts:

No Children 1 Child 2 Children 3+ Children
$632 $4213 $6960 $7830

Key Considerations for Federal Tax Rates

  1. Marginal vs. Effective Tax Rate
    • Your marginal tax rate is the highest tax rate you’re subject to, based on your income. For example, if you’re a single filer earning $50,000, your marginal tax rate is 22%.
    • Your effective tax rate is the average rate you pay on your total taxable income. This is usually lower than your marginal rate because only portions of your income are taxed at higher rates.
  2. Standard Deduction The standard deduction reduces your taxable income. For 2024, the standard deduction amounts are:
    • $13,850 for single filers and married filing separately
    • $27,700 for married filing jointly
    • $20,800 for heads of household
    Taking the standard deduction could lower your effective tax rate significantly.
  3. Other Taxable Income Tax rates apply to more than just wages. Interest, dividends, capital gains, and retirement distributions may also be taxable. Understanding how these are taxed can help you manage your overall liability.
  4. Tax Credits and Deductions Credits such as the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC) can directly reduce your tax liability. Deductions, on the other hand, lower your taxable income.

Planning for the Future

To maximize tax efficiency, consider strategies like contributing to tax-advantaged accounts (e.g., 401(k), IRA), planning charitable donations, or adjusting your withholding. Regularly review changes to tax laws to ensure you’re taking advantage of any new opportunities or avoiding penalties.

Final Thoughts

Federal tax rates can seem complex, but understanding the basics can help you make informed decisions and avoid surprises come tax season. Whether you’re filing on your own or working with a tax professional, staying informed is the key to navigating your tax obligations with confidence.

Previous Years Tax Brackets

2023 Federal Income Tax Brackets

Here are the 2023 Federal Income Tax Rates. They are the tax brackets for your income earned in 2023 (which will be filed on your 2023 tax return due on April 2024).

Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
10% Up to $11,000 Up to $22,000 Up to $11,000 Up to $15,700
12% $11,000 - $44,725 $22,000 to $89,450 $11,000 - $44,725 $15,700 - $59,850
22% $44,725 - $95,375 $89,450 to $190,750 $44,725 - $95,375 $59,850 to $95,350
24% $95,375 to $182,100 $190,750 to $364,200 $95,375 to $182,100 $95,350 to $182,100
32% $182,100 - $231,250 $364,200 to $462,500 $182,100 - $231,250 $182,100 to $231,250
35% $231,250 - $578,125 $462,500 to $693,750 $231,250 - $578,125 $231,250 to $578,100
37% Over $578,125 Over $693,750 Over $578,125 Over $578,100

2023 Standard Deduction Amount & Exemptions

Filing Status Deduction Amount
Single $13,850
Married Filing Separately $13,850
Married Filing Jointly $27,700
Head of Household $20,800
Qualifying Surviving Spouse $27,700

Earned Income Tax Credit (EITC)

The maximum EITC amount depends on the number of qualifying children. Below are the maximum amounts:

No Children 1 Child 2 Children 3+ Children
$600 $3995 $6604 $7430

2022 Federal Income Tax Rates

Here are the 2022 Federal Income Tax Rates. They are the tax brackets for your income earned in 2022 (which will be filed on your 2022 tax return due on April 2023).

Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
10% Up to $10,275 Up to $20,550 Up to $10,275 Up to $14,650
12% $10,276 - $41,775 $20,551 to $83,550 $10,276 - $41,775 $14,651 - $55,900
22% $41,776 - $89,075 $83,551 to $178,150 $41,776 - $89,075 $55,901 to $89,050
24% $89,076 to $170,050 $178,151 to $340,100 $89,076 to $170,050 $89,051 to $170,050
32% $170,051 - $215,950 $340,101 to $431,900 $170,051 - $215,950 $170,051 to $215,950
35% $215,951 - $539,900 $431,901 to $647,850 $215,951 - $539,900 $215,951 to $539,900
37% Over $539,901 Over $647,851 Over $539,901 Over $539,901

2022 Standard Deduction Amount & Exemptions

Filing Status Deduction Amount
Single $12,950
Married Filing Separately $12,950
Married Filing Jointly $25,900
Head of Household $19,400
Qualifying Widow(er) $25,900

Earned Income Credit Table for 2022 Income Limits & Maximum Amounts

Filing Status No Qualifying Children 1 Qualifying Child 2 Qualifying Children 3+ Qualifying Children
Single, Head of Household, or Widowed $16,480 $43,492 $49,399 $53,057
Married Filing Jointly $22,610 $49,622 $55,529 $59,187

Maximum Credit Amounts

Here are the maximum EITC credits you can claim in 2022:

No Children 1 Child 2 Children 3+ Children
$560 $3773 $6164 $6935

    2021 Federal Income Tax Rates

    Here are the 2021 Federal Income Tax Rates. They are the tax brackets for your income earned in 2021 (which will be filed on your 2021 tax return due on April 2022).

    Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
    10% Up to $9,950 Up to $19,900 Up to $9,950 Up to $14,200
    12% $9,951 – $40,525 $19,901 – $81,050 $9,951 – $40,525 $14,201 – $54,200
    22% $40,526 – $86,375 $81,051 – $172,750 $40,526 – $86,375 $54,201– $86,350
    24% $86,376 – $164,925 $172,751 – $329,850 $86,376– $164,925 $86,351 – $164,900
    32% $164,926 – $209,425 $329,851 – $418,850 $164,926 – $209,425 $164,901 – $209,400
    35% $209,426 – $523,600 $418,851 – $628,300 $209,426 – $314,150 $209,401 – $523,600
    37% Over $523,601 Over $628,301 Over $314,151 Over $523,601

    2021 Standard Deduction Amount & Exemptions

    Filing Status Deduction Amount
    Single $12,550
    Married Filing Separately $12,550
    Married Filing Jointly $25,100
    Head of Household $18,800
    Qualifying Widow(er) $25,100

    Earned Income Credit Table for 2021 Income Limits & Maximum Amounts

    Filing Status No Qualifying Children 1 Qualifying Child 2 Qualifying Children 3+ Qualifying Children
    Single, Head of Household, or Widowed $21,430 $42,158 $47,915 $51,464
    Married Filing Jointly $27,380 $48,108 $53,865 $57,414

    Maximum Credit Amounts

    Here are the maximum EITC credits you can claim in 2021:

    No Children 1 Child 2 Children 3+ Children
    $1502 $3618 $5980 $6728

        2020 Federal Income Tax Rates

        Here are the 2020 Federal Income Tax Rates. They are the tax brackets for your income earned in 2020 (which will be filed on your 2020 tax return due on April 2021).

        Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
        10% Up to $9,875 Up to $19,750 Up to $9,875 Up to $14,100
        12% $9,875 – $40,125 $19,751 – $80,250 $9,875 – $40,125 $14,101 – $53,700
        22% $40,126 – $85,525 $80,251 – $171,050 $40,126 – $85,525 $53,701 – $85,500
        24% $85,526 – $163,300 $171,051 – $326,600 $85,526 – $163,300 $85,501 – $163,300
        32% $163,301 – $207,350 $326,601 – $414,700 $163,301 – $207,350 $163,301 – $207,350
        35% $207,351 – $518,400 $414,701 – $622,050 $207,351 – $518,400 $207,351 – $518,400
        37% Over $518,401 Over $622,051 Over $311,026 Over $518,401

        2020 Standard Deduction Amount & Exemptions

        Filing Status Deduction Amount
        Single $12,400
        Married Filing Separately $12,400
        Married Filing Jointly $24,800
        Head of Household $18,650
        Qualifying Widow(er) $24,800

        Earned Income Credit Table for 2020 Income Limits & Maximum Amounts

        Filing Status No Qualifying Children 1 Qualifying Child 2 Qualifying Children 3+ Qualifying Children
        Single, Head of Household, or Widowed $15,820 $41,756 $47,440 $50,594
        Married Filing Jointly $21,710 $47,646 $53,330 $56,844

        Maximum Credit Amounts

        Here are the maximum EITC credits you can claim in 2020:

        • No qualifying children: $538
        • 1 qualifying child: $3,584
        • 2 qualifying children: $5,920
        • 3 or more qualifying children: $6,660

        2019 Federal Income Tax Rates

        Here are the 2019 Federal Income Tax Rates. They are the tax brackets for your income earned in 2019 (which will be filed on your 2019 tax return due on April 2020).

        Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
        10% Up to $9,700 Up to $19,400 Up to $9,700 Up to $13,850
        12% $9,701-$39,475 $19,401-$78,950 $9,701-$39,475 $13,851 -$52,850
        22% $39,476-$84,200 $78,951-$168,400 $39,476-$84,200 $52,851-$84,200
        24% $84,201-$160,725 $168,401-$321,450 $84,201-$160,725 $84,201-$160,700
        32% $160,726-$204,100 $321,451-$408,200 $160,726-$204,100 $160,701-$204,100
        35% $204,101-$510,300 $408,201-$612,350 $204,101-$306,175 $204,101-$510,300
        37% Over $510,301 Over $612,351 Over $306,176 Over $510,301

        2019 Standard Deduction Amount & Exemptions

        Filing Status Deduction Amount
        Single $12,200
        Married Filing Separately $12,200
        Married Filing Jointly $24,400
        Head of Household $18,350
        Qualifying Widow(er) $24,400

        Earned Income Credit Table for 2019 Income Limits & Maximum Amounts

        Filing Status No Qualifying Children 1 Qualifying Child 2 Qualifying Children 3+ Qualifying Children
        Single, Head of Household, or Widowed $15,570 $41,094 $46,703 $50,162
        Married Filing Jointly $21,370 $46,884 $52,493 $55,952

        Here are the maximum EITC credits you can claim in 2019:

        • No qualifying children: $529
        • 1 qualifying child: $3,526
        • 2 qualifying children: $5,828
        • 3 or more qualifying children: $6,557

        2018 Federal Income Tax Rates

        Here are the 2018 Federal Income Tax Rates. They are the tax brackets for your income earned in 2018 (which will be filed on your 2018 tax return due on April 2019).

        Tax Rate Single Married Filing Joint Married Filing Separate Head of Household
        10% Up to $9,525 Up to $19,050 Up to $9,525 Up to $13,600
        12% $9,526-$38,700 $19,051-$77,400 $9,526-$38,700 $13,601-$51,800
        22% $38,701-$82,500 $77,401-$165,000 $38,701-$82,500 $51,801-$82,500
        24% $82,501-$157,500 $165,001-$315,000 $82,501-$157,500 $82,501-$157,500
        32% $157,501-$200,000 $315,001-$400,000 $157,501-$200,000 $157,501-$200,000
        35% $200,001-$500,000 $400,001-$600,000 $200,001-$300,000 $200,001-$500,000
        37% Over $500,000 Over $600,000 Over $300,000 Over $500,000


        Earned Income Credit Table for 2018 Income Limits & Maximum Amounts

        See the earned income and adjusted gross income (AGI) limits

        Filing Status No Qualifying Children 1 Qualifying Child 2 Qualifying Children 3+ Qualifying Children
        Single, Head of Household, or Widowed $15,270 $40,320 $45,802 $49,194
        Married Filing Jointly $20,950 $46,010 $51,492 $54,884

        Here are the maximum EITC credits you can claim in 2018:

        • No qualifying children: $519
        • 1 qualifying child: $3,461
        • 2 qualifying children: $5,716
        • 3 or more qualifying children: $6,431
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