In the United States, the federal income tax system operates using a progressive tax structure, which means that individuals are taxed at different rates based on their income. The tax system is divided into layers called tax brackets, and as income increases, the tax rate on the next layer of income also increases. It's important to note that when an individual's income jumps to a higher tax bracket, they only pay the higher rate on the portion of income within the new tax bracket, not on their entire income.
For the tax year 2024, the federal income tax brackets and rates are as follows:
- 10%: $0 to $11,600
- 12%: $11,601 to $47,900
- 22%: $47,901 to $97,300
- 24%: $97,301 to $209,250
- 32%: $209,251 to $523,600
- 35%: $523,601 to $628,300
- 37%: $628,301 and above.
These brackets apply to different filing statuses, such as single filers, married individuals filing jointly, and heads of households. It's important to consider that these brackets are subject to change due to inflation adjustments and legislative decisions.
Refer IRS => https://www.irs.gov/filing/federal-income-tax-rates-and-brackets
