The US tax filing season started in the last week of January. As you file your 2024 income this year, you need to learn the US tax brackets 2024/25, especially where you fall in and other filing essentials, to get the upper hand over your taxes.
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What Are the US Tax Brackets 2024/25?
here are currently seven federal income tax brackets in the US, adjusted annually per inflation. The 2025 rates, however, will stay the same as in 2024 to align with the Tax Cuts and Jobs Act (TCJA), which is also expiring by the end of this year.
The rates you pay depend on the tax bracket that your taxable income falls into and your filing status:
- Single
- Married filing jointly
- Married filing separately
- Head of household
- Qualifying surviving spouse
The US follows the progressive income tax system, so you do not pay tax at a single rate but at the brackets your taxable income applies. The highest rate your income may be exposed to is called your marginal tax rate.
You have standard deduction, however, to lower your taxable income, hence tax bill, which you may be eligible for if you do not claim itemized deductions. This tax-free portion also changes every year. Note that this is different from personal exemptions which were abolished since the Tax Cuts and Jobs Act of 2017.
Fun Fact: Some states do not charge income tax! Currently, they include Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire will soon join the list in 2027.
2024 Federal Tax Brackets by Filing Status
Know how much is federal income tax 2024 before filing your tax returns this year. Below, we outline the rates according to filing statuses:
2024 Tax Brackets for Single Filers
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2024 Tax Brackets Married Filing Jointly
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2024 Tax Brackets Married Filing Separately
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2024 Tax Brackets for Heads of Household
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2024 Tax Brackets for Qualifying Surviving Spouse
Refer to the tax brackets above for married filing jointly, as both are taxed the same. This has the lowest tax rates among all filing statuses. You are eligible for this status if you did not remarry within the year your spouse died. In this case, you can still file jointly with your deceased spouse.
Check here if you want to know how the US tax brackets over time have changed.
Key Tax Changes to Expect in 2025
Tax provisions are adjusted every year according to the cost of living, especially thresholds for income tax brackets and standard deductions. Here are the changes you can expect in 2025:
Income Tax Brackets
Tax rates remain as in 2024, but thresholds will be adjusted as below:
24% to 32% Tax Rate
- Single filers: threshold will be at $197,300
- Married couples: threshold will be at $394,600
Top Rates Apply Over
- Single filers: $626,350
- Married couples: $751,600
Standard Deductions
Here’s a quick comparison between 2024 and 2025 standard deductions:
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The Tax Cuts and Jobs Act (TCJA) is also set to expire by the end of 2025, which can mean more potential changes. For more information, check latest IRS release of tax inflation adjustments for tax year 2025.
Tax-Efficient Filing Tips in 2025
There are many ways you can reduce your taxable income. Here are some tax-efficient tips you may want to consider:
- Reduce your taxable income by contributing the maximum amount allowed to your retirement accounts, including 401(k)s and IRAs.
- Use all tax credits and deductions you may be eligible for, such as earned income tax credit, mortgage interest deduction, state and local taxes (SALT), medical expenses, or charitable donations.
- Use the standard deduction instead of itemized. If you claim itemized deductions, be sure to work it out with tax experts.
- Tax-loss harvesting may apply to you if you have some investments that have lost their value. Selling them can significantly offset your capital gains.
It’s a wise move to ask for a tax expert’s support in your filing to make sure you are being tax-efficient in every aspect. If you are a parent or a guardian, you may get refunds. See if you qualify for Child Tax Credit.
FAQs on U.S. Tax System
The highest US tax brackets state level for income tax is in California, Hawaii, and New York. When it comes to sales tax rates, Tennessee and Louisiana are the highest.
You can work out your marginal tax rate by calculating how much tax you owe based on your income in each of the seven tax brackets. For each bracket, apply the tax rate to the income that falls within that bracket, and then add up all the taxes from each bracket.
Yes, only if you file by mail. E-file needs you to file federal taxes first. Most taxpayers, however, file both federal and state tax returns at the same time.
Alternative Minimum Tax (AMT) was originally designed to prevent high-income earners from taking advantage of tax loopholes. If you exceed certain income thresholds, you may likely trigger AMT.
Get Tax Expert Advice
The tax you pay depends on the US tax brackets 2024/25 your income falls in and your filing status. If you need personalized guidance this tax season, Legend Fusions is here for you. We do not only help you accurately file tax returns but also ensure tax-efficiency in every step. Talk to our tax accountant today!
Reviewed by:
Hira Asif
Hira Asif, Client Manager (US) at Legend Fusions, brings over 11 years of tax expertise, including 8 years with Ernst & Young. Her work focuses on tax advisory, compliance, and planning for individuals, partnerships, and private equity funds. With a deep knowledge of federal, state, and local tax regulations, Hira is skilled in identifying tax planning opportunities and reviewing corporate and partnership tax returns to optimize compliance and reduce exposures.