(NewsNation) — The 2025 tax filing season has officially started so it’s important to understand how the government determines what you owe.
Each year the Internal Revenue Service (IRS) sets new income thresholds for the various tax brackets to keep up with inflation. The IRS increased the threshold for each tax tier by about 5.4% for tax year 2024 (taxes due this year).
The adjustments automatically apply when you file your taxes in 2025 which means those whose salaries haven’t kept up with inflation could have a lower tax bill.
The standard deduction is also higher for 2024, up $750 from the year before, meaning taxpayers can lower their taxable income by a greater amount when they go to file this year.
The filing deadline for 2024 tax returns is April 15, 2025.
How do federal income taxes work?
You pay taxes as a percentage of your income, which is divided into layers called tax brackets. Each layer is taxed at a different rate, so the total amount you pay depends on how much you earn.
In the U.S., the federal income tax is progressive, meaning that the tax rate increases as your income rises.
Currently, tax rates are separated into seven different brackets by income level: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
Remember: When your income jumps to a higher tax bracket, you don’t pay the higher rate on your entire income. Instead, you are taxed only on the part that is in the higher bracket.
For example:
A single person with a taxable income of $58,000 per year would pay 10% on the first $11,600, 12% on the next chunk up to $47,150, and 22% from $47,151 to $58,000.
What are the tax brackets for 2024?
The seven tax rates haven’t changed since the Tax Cuts and Jobs Act took effect in 2018 but the income thresholds get adjusted each year for inflation.
The 2024 income threshold for each tax tier is about 5.4% higher for inflation from the year before.
Your filing status also determines how much income tax you pay. Choosing a different status, whether single or married, can change the point at which you move between brackets.
These are the income thresholds for money earned in 2024.
Note: Your taxable income is whatever is left after subtracting either the standardized deduction or itemized deductions.
2024 income tax brackets for single filers
| Tax rate | For taxable income above |
| 10% | $0 |
| 12% | $11,600 |
| 22% | $47,150 |
| 24% | $100,525 |
| 32% | $191,950 |
| 35% | $243,725 |
| 37% | $609,350 |
2024 income tax brackets for married, joint filers
| Tax rate | For taxable income above |
| 10% | $0 |
| 12% | $23,200 |
| 22% | $94,300 |
| 24% | $201,050 |
| 32% | $383,900 |
| 35% | $487450 |
| 37% | $731,200 |
What is the standard deduction?
Most taxpayers claim the standard deduction, a fixed amount you can deduct to reduce your taxable income and lower your federal tax bill.
Unlike itemized deductions, which require you to track specific expenses, the standard deduction is available without having to prove anything.
The IRS generally adjusts the standard deduction each year for inflation. Here’s the standard deduction for the 2024 tax year (taxes due this year).
2024 standard deductions
| Filing status | Standard deduction |
| Single or married filing separately | $14,600 |
| Head of household | $21,900 |
| Married filing jointly or qualifying surviving spouse | $29,200 |
When will I get my tax refund?
The IRS generally issues refunds within 21 days for taxpayers who file electronically and choose direct deposit. Paper returns take longer.
You can check the status of your federal refund using the Where’s My Refund? tool on the IRS website.
The federal tax filing deadline, Tax Day, is Tuesday, April 15.