Here's a rundown of changes to limits and thresholds on some well-known tax provisions for the 2024 tax year.
Sabrina Parys
Assistant Assigning Editor | Taxes, Investing
Sabrina Parys is an assistant assigning editor on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.
Lead Assigning EditorArielle O'Shea
Lead Assigning Editor | Retirement planning, investment management, investment accounts
Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for over 15 years, and was a senior writer and spokesperson at NerdWallet before becoming an assigning editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia.
Fact CheckedMany, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Nerdy takeawaysEach year, the IRS makes updates to common tax provisions, such as the standard deduction, to ensure that certain parts of the tax code keep up with inflation.
These tweaks, also known as inflation adjustments, play a critical role in preventing a phenomenon known as "bracket creep." Without them, inflation has a greater chance of pushing taxpayers who received a cost-of-living raise into a higher tax bracket — potentially subjecting them to higher tax rates.
High inflation meant a higher-than-usual adjustment of 7% across most of these tax provisions for tax year 2023. For some, this could translate to smaller tax bills when filing returns in April.
In 2024, the IRS says we’ll see a roughly 5.4% increase. Although the adjustment is lower than last year’s, it remains relatively high compared with annual increases of the past. This means some people may continue to see a tax benefit going into 2024.
Here's a look at how certain tax thresholds and credits will shift for the 2024 tax year, plus a comparison with 2023.
Simple tax filing with a $50 flat fee for every scenario
With NerdWallet Taxes powered by Column Tax, registered NerdWallet members pay one fee, regardless of your tax situation. Plus, you'll get free support from tax experts. Sign up for access today.
Register Nowfor a NerdWallet account
Hassle-free tax filing* is $50 for all tax situations — no hidden costs or fees.Maximum refund guaranteed
Get every dollar you deserve* when you file with this tax product, powered by Column Tax. File up to 2x faster than traditional options.* Get your refund, and get on with your life.*guaranteed by Column Tax
In the U.S., there are seven federal tax brackets. The marginal rates — 10%, 12%, 22%, 24%, 32%, 35% and 37% — remain unchanged from 2023.
However, for the 2024 tax year (taxes filed in 2025), the IRS is making adjustments to many of the income thresholds that inform these brackets. This means that some people may be able to stay in a lower tax bracket and those who received a cost-of-living raise may avoid getting a portion of their income pushed into a higher bracket.
Married filers, for example, can make a maximum of $94,300 to remain in the 12% bracket, compared with $89,450 in 2023. This increase means that, in 2024, some couples may be able to shelter an additional almost $5,000 from a higher tax rate.
2023 vs. 2024 tax brackets: Married filing jointly
12%: $22,001 to $89,450.
12%: $23,201 to $94,300.
22%: $89,451 to $190,750.
22%: $94,301 to $201,050.
24%: $190,751 to $364,200.
24%: $201,051 to $383,900.
32%: $364,201 to $462,500.
32%: $383,901 to $487,450.
35%: $462,501 to $693,750.
35%: $487,451 to $731,200.
37%: $693,751 or more.
37%: $731,200 or more.
2023 vs. 2024 tax brackets: Single filers
12%: $11,001 to $44,725.
12%: $11,601 to $47,150.
22%: $44,726 to $95,375.
22%: $47,151 to $100,525.
24%: $95,376 to $182,100.
24%: $100,526 to $191,950.
32%: $182,101 to $231,250.
32%: $191,951 to $243,725.
35%: $231,251 to $578,125.
35%: $243,726 to $609,350.
37%: $578,126 or more.
37%: $609,351 or more.
The IRS lets most filers lower their taxable by either taking the standard deduction or by itemizing on their returns. The standard deduction, a flat amount that is based on filing status, is popular among most people, as it requires less work to claim and is often more beneficial for those who might not have deductible expenses.
For the 2024 tax year, the standard deduction will increase by $750 for single filers and those married filing separately, $1,500 for married filing jointly , and $1,100 for heads of household.
Standard deduction 2023
Standard deduction 2024
Married, filing jointly
Married, filing separately
Head of household
» Itemize or take the standard deduction? Learn about the differences
Simple tax filing with a $50 flat fee for every scenario
With NerdWallet Taxes powered by Column Tax, registered NerdWallet members pay one fee, regardless of your tax situation. Plus, you'll get free support from tax experts. Sign up for access today.
Register Nowfor a NerdWallet account
Learn MoreAlso included in the IRS' 30-page inflation release are various changes to several tax provisions beyond the federal tax brackets.
Here’s a look at how some other common tax rules will change in 2024.
The annual exclusion for gifts, which limits how much taxpayers can give an individual without filing a gift tax return on certain gifts, will increase to $18,000 per person in 2024, up $1,000 from 2023.
The estate tax exclusion establishes a threshold for the taxation of estates upon a wealthy person's death. In 2024, estates valued at or below $13.6 million will not be subject to estate tax, up from $12.92 million in 2023.
Starting in 2024, taxpayers who contribute to a health flexible spending account , or FSA, can contribute up to $3,200 and, if permissible by their plan, will be able to carry over up to $640 into the next tax year.
For those with health savings accounts, the 2024 limit for annual contributions will rise to $4,150 for self coverage and $8,300 for family coverage.
The earned income tax credit, a refundable tax credit for low- and moderate-income workers, will also see a bump in 2024. The total credit amount depends on income and the number of children — but people without kids can still qualify. For 2023, the earned income credit ranges from $600 to a maximum of $7,430. In 2024, the credit will increase to a maximum of $7,830 for qualifying taxpayers with three or more children.
About the authorYou’re following Sabrina Parys
Visit your My NerdWallet Settings page to see all the writers you're following.
Sabrina Parys is a content management specialist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her work has appeared in The Associated Press, The Washington Post and Yahoo Finance. See full bio.
On a similar note.
Download the app
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product's site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution's Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
NerdUp by NerdWallet credit card: NerdWallet is not a bank. Bank services provided by Evolve Bank & Trust, member FDIC. The NerdUp by NerdWallet Credit Card is issued by Evolve Bank & Trust pursuant to a license from MasterCard International Inc.
Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
NerdWallet Compare, Inc. NMLS ID# 1617539
California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812
Insurance Services offered through NerdWallet Insurance Services, Inc. (CA resident license no.OK92033) Insurance Licenses
NerdWallet™ | 55 Hawthorne St. - 10th Floor, San Francisco, CA 94105
