New tax brackets for 2024 released. How does it affect you?

The end of the year approaches, and that can only mean one thing: taxes. The IRS released the new updated income tax brackets for 2024.

The tax brackets were adjusted upwards by 5.4% due to inflation, according to the IRS. You may get a break if your income now falls in a lower bracket, but you won’t feel these effects until you file taxes for 2024.

The U.S. federal income tax code is divided into seven tax rates. Each of the seven rates will apply to the tax brackets for 2024:

• 10%: For incomes up to $11,600 ($23,200 for married couples filing jointly)
• 12%: Incomes over $11,600 ($23,200 for joint filers)
• 22%: Incomes over $47,150 ($94,300 for joint filers)
• 24%: Incomes over $100,525 ($201,050 for joint filers)
• 32%: Incomes over $191,950 ($383,900 for joint filers)
• 35%: Incomes over $243,725 ($487,450 for joint filers)