The Internal Revenue Service announced on Thursday that the thresholds for income tax brackets, and the standard amount Americans can deduct, are both moving up.
The moves???—???two among several adjustments based on rising inflation???—???means that taxpayers will have to earn more money to qualify for higher income brackets and their correspondingly higher rates for tax year 2024.
The top rate of 37%, for instance, will apply to individuals with annual taxable income above $609,350 or to jointly filing married couples who earn more than $731,200. That’s a bump up from tax year 2023 (the taxes you’ll owe in April) for which the thresholds were $578,125 and $693,750, respectively.