As the new tax year approaches, understanding the latest tax brackets and federal income tax rates is essential for effective financial planning. Knowing where you fall within the tax brackets can help you make informed decisions about your finances, from budgeting to investments. In this comprehensive guide, we will explore the federal income tax rates and tax brackets for the 2024 and 2025 tax years, helping you navigate the complex landscape of U.S. income taxation. For 2024 and 2025, there are seven tax brackets that range from 10% to 37%, and these rates will stay in effect until the end of 2025 due to the Tax Cuts and Jobs Act passed in 2017.
How Do Tax Brackets Work?
Your income isn’t taxed as a single lump sum. Instead, it’s divided into brackets: the more you earn, the higher the rates applied to portions of your income. For example, the first part of your income might fall into the 10% bracket, while higher earnings are taxed at progressively higher rates, such as 24% or 32%.
Key Takeaways for 2024-2025
- Tax Rates: Seven brackets remain unchanged: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
- Your Filing Status Matters: Taxable income is also influenced by whether you file as single, married, or head of household.
- Brackets by Income Levels: Each bracket has a specific income range, so you’ll only pay the higher rates on the portion of income that exceeds the lower thresholds.
To see how these rates apply to your situation, review the tax brackets for 2024 and 2025 below.
2024 Tax Brackets
The 2024 tax brackets apply to income earned this year, which is reported on tax returns filed in 2025. Click below to see the total taxes owed for each filing status.
|
Tax rate |
Single |
Married filing jointly |
Married filing separately |
Head of household |
|---|---|---|---|---|
|
10% |
$0 to $11,600 |
$0 to $23,200 |
$0 to $11,600 |
$0 to $16,550 |
|
12% |
$11,601 to $47,150 |
$23,201 to $94,300 |
$11,601 to $47,150 |
$16,551 to $63,100 |
|
22% |
$47,151 to $100,525 |
$94,301 to $201,050 |
$47,151 to $100,525 |
$63,101 to $100,500 |
|
24% |
$100,526 to $191,950 |
$201,051 to $383,900 |
$100,526 to $191,950 |
$100,501 to $191,950 |
|
32% |
$191,951 to $243,725 |
$383,901 to $487,450 |
$191,951 to $243,725 |
$191,951 to $243,700 |
|
35% |
$243,726 to $609,350 |
$487,451 to $731,200 |
$243,726 to $365,600 |
$243,701 to $609,350 |
|
37% |
$609,351 or more |
$731,201 or more |
$365,601 or more |
$609,351 or more |
| Source: IRS | ||||
2024 Tax Brackets and Federal Income Tax Rates
For the 2024 tax year, here are the federal income tax rates and brackets:
2024 Tax Bracket Single Filers
|
Tax rate |
Taxable income bracket |
Tax owed |
|---|---|---|
|
10% |
$0 to $11,600. |
10% of taxable income. |
|
12% |
$11,601 to $47,150. |
$1,160 plus 12% of the amount over $11,600. |
|
22% |
$47,151 to $100,525. |
$5,426 plus 22% of the amount over $47,150. |
|
24% |
$100,526 to $191,950. |
$17,168.50 plus 24% of the amount over $100,525. |
|
32% |
$191,951 to $243,725. |
$39,110.50 plus 32% of the amount over $191,950. |
|
35% |
$243,726 to $609,350. |
$55,678.50 plus 35% of the amount over $243,725. |
|
37% |
$609,351 or more. |
$183,647.25 plus 37% of the amount over $609,350. |
2024 Tax Bracket Married Individuals Filing Jointly
|
Tax rate |
Taxable income bracket |
Taxes owed |
|---|---|---|
|
10% |
$0 to $23,200. |
10% of taxable income. |
|
12% |
$23,201 to $94,300. |
$2,320 plus 12% of the amount over $23,200. |
|
22% |
$94,301 to $201,050. |
$10,852 plus 22% of the amount over $94,300. |
|
24% |
$201,051 to $383,900. |
$34,337 plus 24% of the amount over $201,050. |
|
32% |
$383,901 to $487,450. |
$78,221 plus 32% of the amount over $383,900. |
|
35% |
$487,451 to $731,200. |
$111,357 plus 35% of the amount over $487,450. |
|
37% |
$731,201 or more. |
$196,669.50 + 37% of the amount over $731,200. |
2024 Tax Bracket Married Individuals Filing Separately
|
Tax rate |
Taxable income bracket |
Taxes owed |
|---|---|---|
|
10% |
$0 to $11,600. |
10% of taxable income. |
|
12% |
$11,601 to $47,150. |
$1,160 plus 12% of the amount over $11,600. |
|
22% |
$47,151 to $100,525. |
$5,426 plus 22% of the amount over $47,150. |
|
24% |
$100,526 to $191,950. |
$17,168.50 plus 24% of the amount over $100,525. |
|
32% |
$191,951 to $243,725. |
$39,110.50 plus 32% of the amount over $191,950. |
|
35% |
$243,726 to $365,600 |
$55,678.50 plus 35% of the amount over $243,725. |
|
37% |
$365,601 or more. |
$98,334.75 plus 37% of the amount over $365,600. |
2024 Tax Bracket for Heads of Household
|
Tax rate |
Taxable income bracket |
Tax owed |
|---|---|---|
|
10% |
$0 to $16,550. |
10% of taxable income. |
|
12% |
$16,551 to $63,100. |
$1,655 plus 12% of the amount over $16,550. |
|
22% |
$63,101 to $100,500. |
$7,241 plus 22% of the amount over $63,100. |
|
24% |
$100,501 to $191,950. |
$15,469 plus 24% of the amount over $100,500. |
|
32% |
$191,951 to $243,700. |
$37,417 plus 32% of the amount over $191,950. |
|
35% |
$243,701 to $609,350. |
$53,977 plus 35% of the amount over $243,700. |
|
37% |
$609,351 or more. |
$181,954.50 plus 37% of the amount over $609,350. |
Source: NerdWallet
2025 Tax Brackets
The 2025 tax brackets apply to income earned next year, which is reported on tax returns filed in 2026. Click below to see the total taxes owed for each filing status.
|
Tax rate |
Single |
Married filing jointly |
Married filing separately |
Head of household |
|---|---|---|---|---|
|
10% |
$0 to $11,925 |
$0 to $23,850 |
$0 to $11,925 |
$0 to $17,000 |
|
12% |
$11,926 to $48,475 |
$23,851 to $96,950 |
$11,926 to $48,475 |
$17,001 to $64,850 |
|
22% |
$48,476 to $103,350 |
$96,951 to $206,700 |
$48,476 to $103,350 |
$64,851 to $103,350 |
|
24% |
$103,351 to $197,300 |
$206,701 to $394,600 |
$103,351 to $197,300 |
$103,351 to $197,300 |
|
32% |
$197,301 to $250,525 |
$394,601 to $501,050 |
$197,301 to $250,525 |
$197,301 to $250,500 |
|
35% |
$250,526 to $626,350 |
$501,051 to $751,600 |
$250,526 to $375,800 |
$250,501 to $626,350 |
|
37% |
$626,351 or more |
$751,601 or more |
$375,801 or more |
$626,351 or more |
|
Source: IRS |
||||
2025 Tax Brackets and Federal Income Tax Rates
For the 2025 tax year, here are the federal income tax rates and brackets:
2025 Tax Bracket for Single Filers
|
Tax rate |
Taxable income bracket |
Tax owed |
|---|---|---|
|
10% |
$0 to $11,925. |
10% of taxable income. |
|
12% |
$11,926 to $48,475. |
$1,192.50 plus 12% of the amount over $11,925. |
|
22% |
$48,476 to $103,350. |
$5,578.50 plus 22% of the amount over $48,475. |
|
24% |
$103,351 to $197,300. |
$17,651 plus 24% of the amount over $103,350. |
|
32% |
$197,301 to $250,525. |
$40,199 plus 32% of the amount over $197,300. |
|
35% |
$250,526 to $626,350. |
$57,231 plus 35% of the amount over $250,525. |
|
37% |
$626,351 or more. |
$188,769.75 plus 37% of the amount over $626,350. |
2025 Tax Bracket for Married Filing Jointly
|
Tax rate |
Taxable income bracket |
Taxes owed |
|---|---|---|
|
10% |
$0 to $23,850. |
10% of taxable income. |
|
12% |
$23,851 to $96,950. |
$2,385 plus 12% of the amount over $23,850. |
|
22% |
$96,951 to $206,700. |
$11,157 plus 22% of the amount over $96,950. |
|
24% |
$206,701 to $394,600. |
$35,302 plus 24% of the amount over $206,700. |
|
32% |
$394,601 to $501,050. |
$80,398 plus 32% of the amount over $394,600. |
|
35% |
$501,051 to $751,600. |
$114,462 plus 35% of the amount over $501,050. |
|
37% |
$751,601 or more. |
$202,154.50 plus 37% of the amount over $751,600. |
2025 Tax Bracket for Married Filing Separately
|
Tax rate |
Taxable income bracket |
Taxes owed |
|---|---|---|
|
10% |
$0 to $11,925. |
10% of taxable income. |
|
12% |
$11,926 to $48,475. |
$1,192.50 plus 12% of the amount over $11,925. |
|
22% |
$48,476 to $103,350. |
$5,578.50 plus 22% of the amount over $48,475. |
|
24% |
$103,351 to $197,300. |
$17,651 plus 24% of the amount over $103,350. |
|
32% |
$197,301 to $250,525. |
$40,199 plus 32% of the amount over $197,300. |
|
35% |
$250,526 to $375,800. |
$57,231 plus 35% of the amount over $250,525. |
|
37% |
$375,801 or more. |
$101,077.25 plus 37% of the amount over $375,800. |
2025 Tax Bracket for Heads of Household
|
Tax rate |
Taxable income bracket |
Tax owed |
|---|---|---|
|
10% |
$0 to $17,000. |
10% of taxable income. |
|
12% |
$17,001 to $64,850. |
$1,700 plus 12% of the amount over $17,000. |
|
22% |
$64,851 to $103,350. |
$7,442 plus 22% of the amount over $64,850. |
|
24% |
$103,351 to $197,300. |
$15,912 plus 24% of the amount over $103,350. |
|
32% |
$197,301 to $250,500. |
$38,460 plus 32% of the amount over $197,300. |
|
35% |
$250,501 to $626,350. |
$55,484 plus 35% of the amount over $250,500. |
|
37% |
$626,351 or more. |
$187,031.50 plus 37% of the amount over $626,350. |
Source: NerdWallet
These tax brackets and rates are applied to your taxable income, which is your total income minus any deductions and exemptions you may qualify for. Remember that these brackets apply to the 2024 and 2025 tax year and may be subject to adjustments in the future.
Tax Planning Strategies
Understanding tax brackets and federal income tax rates is essential for effective tax planning. Here are some strategies to consider:
- Income Shifting: If you expect a change in income from one year to the next, consider shifting income from the higher-earning year to the lower-earning year to reduce your overall tax liability.
- Tax-Efficient Investments: Invest in tax-efficient assets, such as tax-advantaged retirement accounts and tax-efficient mutual funds, to minimize your tax liability on investment gains.
- Utilize Tax Credits: Explore tax credits available to you, such as the Earned Income Tax Credit (EITC), Child Tax Credit, and education credits, to reduce your tax liability.
- Tax Loss Harvesting: Offset capital gains by selling investments with losses, which can help reduce your overall taxable income.
- Contribute to Tax-Advantaged Accounts: Maximize contributions to tax-advantaged retirement accounts like 401(k)s and IRAs to lower your taxable income.
- Deductible Expenses: Take advantage of itemized deductions for expenses like mortgage interest, property taxes, and charitable contributions.
- Consult a Tax Professional: Tax laws and regulations are complex and subject to change. Consult a tax professional or financial advisor for personalized tax planning strategies tailored to your situation.
Conclusion
Understanding the tax brackets and federal income tax rates for the 2024 and 2025 tax years is essential for effective financial planning. Tax planning allows you to make informed decisions about your income, deductions, and investments to minimize your overall tax liability. Keep in mind that tax laws and rates may change over time, so staying informed about current regulations is crucial for making the most of your financial resources. Whether you’re an individual, business owner, or investor, strategic tax planning can help you achieve your financial goals while managing your tax obligations effectively.
