INCOME TAX RATE

INCOME TAX RATES

Personal Exemptions Eliminated

Personal and dependent exemptions are eliminated under the new TCJA from 2018 to 2025. You are not able to reduce the income that is subject to tax by the exemption amount for each person included on your tax return as you have in previous years such as yourself, your spouse, or your dependents.

INDIVIDUAL INCOME TAX BRACKETS

The Federal income tax has 7 rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The amount of tax you owe depends on your income level and filing status. The top marginal income tax rate of 37 percent will hit taxpayers with a taxable income of $578,125 and higher for single filers and $63,750 and higher for married couples filing jointly.

Here are the 2024 tax rates and brackets organized by filing status:

Here are the 2023 tax rates and brackets organized by filing status:

STANDARD DEDUCTION AMOUNTS

There are 2 main types of tax deductions: the standard deduction and itemized deductions. You are allowed to claim one type of deduction on your tax return, but not both.

For instance, if you claim the standard deduction, you cannot claim itemized deductions – and vice versa. You can use whichever type of deduction results in the lowest tax. Here are the standard deduction amounts by filing status:

LONG-TERM CAPITAL GAINS TAX BRACKETS

Long-term capital gains are re-taxed using different brackets and rates than ordinary income.

Here are the 2024 tax brackets organized by filing status:

With an additional net investment income tax at a 3.8% rate for a MAGI above $200,000 for unmarried individuals and heads of household and a MAGI above $250,000 for married individuals filing joint returns.

Here are the 2023 tax brackets organized by filing status:

STATE INDIVIDUAL INCOME TAX RATES & CORRESPONDING BRACKETS

Here are the 2024 NY tax brackets organized by filing status:

New York state income tax rates are 4%, 4.5%, 5.25%, 5.85%, 6.25%, 6.85%, 9.65%, 10.3% and 10.9%.
New York City and Yonkers have their own local income tax on top of the state tax. New York City income tax rates are 3.078%, 3.762%, 3.819%, and 3.876%.

Here are the 2024 CA tax brackets organized by filing status:

California state income tax rates are 1%, 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3% and 12.3%. Mental Health Services tax rate is 1% for taxable income in excess of $1,000,000