IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
Your new year paycheck might have different withholding amounts for federal taxes. Effective Jan 1 2024, IRS has updated the federal tax brackets.
The rates remain at 0%, 10%, 12%, 22%, 24%, 32%, 35%, or 37% but the ranges have been adjusted for inflation. Federal Income Tax is a progressive tax, meaning you don't pay a flat rate on your entire income. Your first paycheck will start at the first bracket. As you earn more throughout the year, your income is segmented into different tax brackets, each with its corresponding tax rate.
Tip: calculate your income tax with PaycheckCity Calculators. Enter your check date and wage info and see your federal and state taxes breakdown.
2024 Federal tax brackets
| 2024 Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,701 to $609,350 |
| 37% | $609,351 or more | $731,201 or more | $609,351 or more |
Standard deductions
Federal standard deductions for employees increased to:
- single or filing separately: $14,600
- married filing jointly: $29,200
- head of household: $21,900
Supplemental wages
Bonus and other supplemental wage tax flat rate will remain 22% using the optional flat rate, or 37% if the mandatory flat rate applies.
Tip: use a bonus tax calculator to determine how your bonus will be taxed in 2024.
For nonresident alien employees
The following updates have been made for nonresident alien employees in 2024:
- For nonresident alien employees that first paid wages before 2020 that have not submitted a Form W-4 for 2020 or later, the annual adjustment amount has increased from $9,550 to $10,300.
- For nonresident alien employees that have submitted a Form W-4 for 2020 or later, the annual adjustment amount has increased from $13,850 to $14,600.
These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.
