Advertiser Disclosure
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Fact Checked
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Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!

Got it
Special Offer:

2024-2025 Federal Income Tax Brackets & Rates: Complete Guide

Your complete guide to 2024-2025 federal tax brackets and rates.

Small Kudos square logoAn upside down carrot icon
A group of people holding paper bills

Key Takeaways

  • Federal tax rates range from 10% to 37% for 2024-2025
  • The IRS adjusts income thresholds annually for inflation
  • Understanding tax brackets helps optimize your tax strategy
  • New income thresholds apply for both 2024 and 2025 tax years
More:

Understanding Federal Income Tax Brackets for 2024-2025

‍

The U.S. employs a progressive tax system where higher incomes face higher federal tax rates. The Tax Cuts and Jobs Act (TCJA) established seven tax brackets ranging from 10% to 37%, which will remain in effect through 2025. However, the Internal Revenue Service (IRS) adjusts income thresholds annually based on inflation through Revenue Procedure 2024-40.

An icon of a lightbulb
Kudos Tip
More:

2024 Tax Brackets and Rates (For Taxes Due April 2025)

‍

Single Filers:

  • 10%: $0 to $11,600
  • 12%: $11,601 to $47,150
  • 22%: $47,151 to $100,525
  • 24%: $100,526 to $191,950
  • 32%: $191,951 to $243,725
  • 35%: $243,726 to $609,350
  • 37%: $609,351 or more

Married Filing Jointly:

  • 10%: $0 to $23,200
  • 12%: $23,201 to $94,300
  • 22%: $94,301 to $201,050
  • 24%: $201,051 to $383,900
  • 32%: $383,901 to $487,450
  • 35%: $487,451 to $731,200
  • 37%: $731,201 or more
More:

How Tax Brackets Impact Your Tax Bill

‍

Understanding your marginal tax rate and effective tax rate is crucial for tax planning. The marginal tax rate is the rate you pay on your highest dollar of income, while your effective tax rate represents the average percentage you pay across all income.

‍

Example of Progressive Taxation

‍

Let's say you're a single filer earning $75,000 in taxable income for 2024:

  • First $11,600 taxed at 10%
  • Income from $11,601 to $47,150 taxed at 12%
  • Remaining income up to $75,000 taxed at 22%

Alternative Minimum Tax (AMT) Considerations

‍

High-income taxpayers should be aware of the Alternative Minimum Tax (AMT). The AMT exemption amount and phaseout thresholds are adjusted annually to prevent bracket creep. This parallel tax system ensures that taxpayers with substantial income pay at least a minimum amount of tax.

Strategies to Optimize Your Tax Bracket Position

‍

Tax Deductions and Credits

  • Standard deduction vs. itemized deductions
  • Personal exemptions (eliminated through 2025)
  • Tax credits for qualifying children
  • Retirement plan contributions

Income Planning Strategies

  • Tax-loss harvesting
  • Timing of income recognition
  • Charitable giving
  • Investment strategies for long-term capital gains

Special Considerations for Different Filing Statuses

‍

Head of Household Benefits

  • Higher standard deduction
  • More favorable tax brackets
  • Special provisions for qualifying children

Married Filing Jointly Advantages

  • Combined income thresholds
  • Joint tax bracket calculations
  • Simplified tax filing process

Looking Ahead: 2025 Tax Changes

‍

The Tax Cuts and Jobs Act provisions are set to expire after 2025, which could significantly impact tax brackets and rates. Working with a tax advisor to plan for potential changes is recommended.

Maximize Your Savings with Smart Shopping

‍

While understanding tax brackets is crucial for financial planning, you can also save money on everyday purchases. Kudos, a free financial companion, helps you maximize credit card rewards when shopping online. It automatically suggests the best card to use for each purchase, potentially saving you hundreds of dollars annually.

‍

Why Use Kudos for Online Shopping:

  • Works with over 15,000 stores
  • Multiply rewards up to 5X during Flash Boost events
  • Free personalized credit card recommendations
  • Seamless integration with your existing cards

Get started with Kudos today and receive $20 back after your first eligible purchase β€” simply sign up for free using code "GET20" and make a purchase at any Boost merchant.

Frequently Asked Questions

‍

What is bracket creep?

‍

Bracket creep occurs when inflation pushes income into higher tax brackets without real income increases. The IRS addresses this through annual inflation adjustments.

‍

How do tax brackets affect capital gains?

‍

Long-term capital gains have separate tax brackets from ordinary income, typically resulting in lower tax rates for investment gains held over one year.

‍

What is the difference between marginal and effective tax rates?

‍

The marginal tax rate is the rate on your last dollar of income, while the effective tax rate is the average rate you pay across all income brackets.

‍

How do tax deductions affect my bracket?

‍

Tax deductions reduce your taxable income, potentially moving you into a lower tax bracket and reducing your overall tax liability.

Supercharge Your Credit Cards

Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.

Get Started

Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

In this article

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Kudos, featured on:
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Advertiser Disclosure
A blue checkmark icon
Fact Checked
A black x icon

Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!

Got it
Special Offer:

2024-2025 Federal Income Tax Brackets & Rates: Complete Guide

Your complete guide to 2024-2025 federal tax brackets and rates.

Small Kudos square logoAn upside down carrot icon

Key Takeaways

  • Federal tax rates range from 10% to 37% for 2024-2025
  • The IRS adjusts income thresholds annually for inflation
  • Understanding tax brackets helps optimize your tax strategy
  • New income thresholds apply for both 2024 and 2025 tax years
More:

Understanding Federal Income Tax Brackets for 2024-2025

‍

The U.S. employs a progressive tax system where higher incomes face higher federal tax rates. The Tax Cuts and Jobs Act (TCJA) established seven tax brackets ranging from 10% to 37%, which will remain in effect through 2025. However, the Internal Revenue Service (IRS) adjusts income thresholds annually based on inflation through Revenue Procedure 2024-40.

An icon of a lightbulb
Kudos Tip
More:

2024 Tax Brackets and Rates (For Taxes Due April 2025)

‍

Single Filers:

  • 10%: $0 to $11,600
  • 12%: $11,601 to $47,150
  • 22%: $47,151 to $100,525
  • 24%: $100,526 to $191,950
  • 32%: $191,951 to $243,725
  • 35%: $243,726 to $609,350
  • 37%: $609,351 or more

Married Filing Jointly:

  • 10%: $0 to $23,200
  • 12%: $23,201 to $94,300
  • 22%: $94,301 to $201,050
  • 24%: $201,051 to $383,900
  • 32%: $383,901 to $487,450
  • 35%: $487,451 to $731,200
  • 37%: $731,201 or more
More:

How Tax Brackets Impact Your Tax Bill

‍

Understanding your marginal tax rate and effective tax rate is crucial for tax planning. The marginal tax rate is the rate you pay on your highest dollar of income, while your effective tax rate represents the average percentage you pay across all income.

‍

Example of Progressive Taxation

‍

Let's say you're a single filer earning $75,000 in taxable income for 2024:

  • First $11,600 taxed at 10%
  • Income from $11,601 to $47,150 taxed at 12%
  • Remaining income up to $75,000 taxed at 22%

Alternative Minimum Tax (AMT) Considerations

‍

High-income taxpayers should be aware of the Alternative Minimum Tax (AMT). The AMT exemption amount and phaseout thresholds are adjusted annually to prevent bracket creep. This parallel tax system ensures that taxpayers with substantial income pay at least a minimum amount of tax.

Strategies to Optimize Your Tax Bracket Position

‍

Tax Deductions and Credits

  • Standard deduction vs. itemized deductions
  • Personal exemptions (eliminated through 2025)
  • Tax credits for qualifying children
  • Retirement plan contributions

Income Planning Strategies

  • Tax-loss harvesting
  • Timing of income recognition
  • Charitable giving
  • Investment strategies for long-term capital gains

Special Considerations for Different Filing Statuses

‍

Head of Household Benefits

  • Higher standard deduction
  • More favorable tax brackets
  • Special provisions for qualifying children

Married Filing Jointly Advantages

  • Combined income thresholds
  • Joint tax bracket calculations
  • Simplified tax filing process

Looking Ahead: 2025 Tax Changes

‍

The Tax Cuts and Jobs Act provisions are set to expire after 2025, which could significantly impact tax brackets and rates. Working with a tax advisor to plan for potential changes is recommended.

Maximize Your Savings with Smart Shopping

‍

While understanding tax brackets is crucial for financial planning, you can also save money on everyday purchases. Kudos, a free financial companion, helps you maximize credit card rewards when shopping online. It automatically suggests the best card to use for each purchase, potentially saving you hundreds of dollars annually.

‍

Why Use Kudos for Online Shopping:

  • Works with over 15,000 stores
  • Multiply rewards up to 5X during Flash Boost events
  • Free personalized credit card recommendations
  • Seamless integration with your existing cards

Get started with Kudos today and receive $20 back after your first eligible purchase β€” simply sign up for free using code "GET20" and make a purchase at any Boost merchant.

Frequently Asked Questions

‍

What is bracket creep?

‍

Bracket creep occurs when inflation pushes income into higher tax brackets without real income increases. The IRS addresses this through annual inflation adjustments.

‍

How do tax brackets affect capital gains?

‍

Long-term capital gains have separate tax brackets from ordinary income, typically resulting in lower tax rates for investment gains held over one year.

‍

What is the difference between marginal and effective tax rates?

‍

The marginal tax rate is the rate on your last dollar of income, while the effective tax rate is the average rate you pay across all income brackets.

‍

How do tax deductions affect my bracket?

‍

Tax deductions reduce your taxable income, potentially moving you into a lower tax bracket and reducing your overall tax liability.

Supercharge Your Credit Cards

Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.

Get Started

Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

In this article

No items found.
Advertiser Disclosure
A blue checkmark icon
Fact Checked
A black x icon

Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!

Got it
Special Offer:

2024-2025 Federal Income Tax Brackets & Rates: Complete Guide

Your complete guide to 2024-2025 federal tax brackets and rates.

Small Kudos square logoAn upside down carrot icon
A group of people holding paper bills

Key Takeaways

  • Federal tax rates range from 10% to 37% for 2024-2025
  • The IRS adjusts income thresholds annually for inflation
  • Understanding tax brackets helps optimize your tax strategy
  • New income thresholds apply for both 2024 and 2025 tax years
More:

Understanding Federal Income Tax Brackets for 2024-2025

‍

The U.S. employs a progressive tax system where higher incomes face higher federal tax rates. The Tax Cuts and Jobs Act (TCJA) established seven tax brackets ranging from 10% to 37%, which will remain in effect through 2025. However, the Internal Revenue Service (IRS) adjusts income thresholds annually based on inflation through Revenue Procedure 2024-40.

An icon of a lightbulb
Kudos Tip
More:

2024 Tax Brackets and Rates (For Taxes Due April 2025)

‍

Single Filers:

  • 10%: $0 to $11,600
  • 12%: $11,601 to $47,150
  • 22%: $47,151 to $100,525
  • 24%: $100,526 to $191,950
  • 32%: $191,951 to $243,725
  • 35%: $243,726 to $609,350
  • 37%: $609,351 or more

Married Filing Jointly:

  • 10%: $0 to $23,200
  • 12%: $23,201 to $94,300
  • 22%: $94,301 to $201,050
  • 24%: $201,051 to $383,900
  • 32%: $383,901 to $487,450
  • 35%: $487,451 to $731,200
  • 37%: $731,201 or more
More:

How Tax Brackets Impact Your Tax Bill

‍

Understanding your marginal tax rate and effective tax rate is crucial for tax planning. The marginal tax rate is the rate you pay on your highest dollar of income, while your effective tax rate represents the average percentage you pay across all income.

‍

Example of Progressive Taxation

‍

Let's say you're a single filer earning $75,000 in taxable income for 2024:

  • First $11,600 taxed at 10%
  • Income from $11,601 to $47,150 taxed at 12%
  • Remaining income up to $75,000 taxed at 22%

Alternative Minimum Tax (AMT) Considerations

‍

High-income taxpayers should be aware of the Alternative Minimum Tax (AMT). The AMT exemption amount and phaseout thresholds are adjusted annually to prevent bracket creep. This parallel tax system ensures that taxpayers with substantial income pay at least a minimum amount of tax.

Strategies to Optimize Your Tax Bracket Position

‍

Tax Deductions and Credits

  • Standard deduction vs. itemized deductions
  • Personal exemptions (eliminated through 2025)
  • Tax credits for qualifying children
  • Retirement plan contributions

Income Planning Strategies

  • Tax-loss harvesting
  • Timing of income recognition
  • Charitable giving
  • Investment strategies for long-term capital gains

Special Considerations for Different Filing Statuses

‍

Head of Household Benefits

  • Higher standard deduction
  • More favorable tax brackets
  • Special provisions for qualifying children

Married Filing Jointly Advantages

  • Combined income thresholds
  • Joint tax bracket calculations
  • Simplified tax filing process

Looking Ahead: 2025 Tax Changes

‍

The Tax Cuts and Jobs Act provisions are set to expire after 2025, which could significantly impact tax brackets and rates. Working with a tax advisor to plan for potential changes is recommended.

Maximize Your Savings with Smart Shopping

‍

While understanding tax brackets is crucial for financial planning, you can also save money on everyday purchases. Kudos, a free financial companion, helps you maximize credit card rewards when shopping online. It automatically suggests the best card to use for each purchase, potentially saving you hundreds of dollars annually.

‍

Why Use Kudos for Online Shopping:

  • Works with over 15,000 stores
  • Multiply rewards up to 5X during Flash Boost events
  • Free personalized credit card recommendations
  • Seamless integration with your existing cards

Get started with Kudos today and receive $20 back after your first eligible purchase β€” simply sign up for free using code "GET20" and make a purchase at any Boost merchant.

Frequently Asked Questions

‍

What is bracket creep?

‍

Bracket creep occurs when inflation pushes income into higher tax brackets without real income increases. The IRS addresses this through annual inflation adjustments.

‍

How do tax brackets affect capital gains?

‍

Long-term capital gains have separate tax brackets from ordinary income, typically resulting in lower tax rates for investment gains held over one year.

‍

What is the difference between marginal and effective tax rates?

‍

The marginal tax rate is the rate on your last dollar of income, while the effective tax rate is the average rate you pay across all income brackets.

‍

How do tax deductions affect my bracket?

‍

Tax deductions reduce your taxable income, potentially moving you into a lower tax bracket and reducing your overall tax liability.

Supercharge Your Credit Cards

Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.

Get Started

Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

In this article

No items found.