Lower 2024 Taxes For Some PA Residents As IRS Adjusts For Inflation

PENNSYLVANIA— The Internal Revenue Service has introduced new income limits for seven tax brackets for 2024, adjusting thresholds to account for inflation. This means taxpayers in Pennsylvania and across the country might get a break when they go to file taxes in 2025.

The IRS said Thursday that it will adjust 2024 brackets upward by 5.4 percent based on Consumer Price Index changes. This means that taxpayers have a larger threshold before they qualify for higher tax rates, and can provide relief for those in Pennsylvania and around the country whose salaries failed to keep pace with rising inflation.

The standard deduction will also rise by 5.4 percent – up to $14,600 for single filers and $29,200 for married couples filing jointly.

That news may come as a relief to Keystone State residents who continue to see the cost of food, housing, and other commodities rise.

The median household income in Pennsylvania is $71,798 according to the U.S. Census Bureau.

For 2024, the top rate of 37 percent will be applied to individuals with taxable income above $609,350 and married couples filing jointly earning $731,200.

Here are the newly-announced 2024 tax rates, which will apply when you file taxes in 2025:

• 37 percent for incomes over $609,350 ($731,200 for married couples filing jointly).
• 35 percent for incomes over $243,725 ($487,450 for married couples filing jointly)
• 32 percent for incomes over $191,950 ($383,900 for married couples filing jointly)
• 24 percent for incomes over $100,525 ($201,050 for married couples filing jointly)
• 22 percent for incomes over $47,150 ($94,300 for married couples filing jointly)
• 12 percent for incomes over $11,600 ($23,200 for married couples filing jointly)
• 10 percent for incomes of $11,600 or less ($23,200 for married couples filing jointly).

Brackets for 2023 were also adjusted for inflation by a historic 7 percent, reflecting the rising cost of goods and services. The IRS makes these adjustments annually.

Here are the 2023 tax rates, which will apply when you file taxes next year:

• 37 percent for incomes over $578,125, ($693,750 for married couples filing jointly)
• 35 percent for incomes over $231,250 ($462,500 for married couples filing jointly)
• 32 percent for incomes over $182,100 ($364,200 for married couples filing jointly)
• 24 percent for incomes over $95,375 ($190,750 for married couples filing jointly)
• 22 percent for incomes over $44,725 ($89,450 for married couples filing jointly)
• 12 percent for incomes over $11,000 ($22,000 for married couples filing jointly).
• 10 percent for incomes under $11,000 ($22,000 for married couples filing jointly).