Updates to 2024 Federal Taxes

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

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.