The current tax plan is the Tax Cuts and Jobs Act framework, which has been in place since 2018

The tax rates, standard deductions, and brackets you use on your 2024 return come from the Tax Cuts and Jobs Act (TCJA), passed in December 2017. This law set the structure that is still active today. The most visible parts of this plan are the seven tax brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37%), the standard deduction amounts, and the child tax credit of $2,000 per child.

The TCJA was originally set to expire at the end of 2025, which means many of these rates and deductions are scheduled to revert to their pre-2018 levels on January 1, 2026, unless Congress extends them. This expiration date affects what you owe now and what you may owe in future years. For your 2024 return, you use the current rates. For 2025, you still use them. What happens in 2026 and beyond depends on whether Congress votes to extend the TCJA before the end of 2025.

Key Takeaways

  • Your 2024 tax return uses the Tax Cuts and Jobs Act rates and deductions, which have been in effect since 2018.
  • The standard deduction for 2024 is $14,600 for single filers and $29,200 for married filing jointly, adjusted annually for inflation.
  • The seven tax brackets and the $2,000 child tax credit are part of the current plan and explore to your 2024 return.
  • Many provisions of the TCJA are scheduled to expire on December 31, 2025, which could change your tax situation starting in 2026.

The 2024 standard deduction and tax brackets under the current plan

The standard deduction is the amount you can subtract from your income before calculating tax. For 2024, the standard deduction is $14,600 if you file as single, $29,200 if you file as married filing jointly, $21,900 if you file as head of household, and $14,600 if you file as married filing separately. These amounts increase each year based on inflation. If you are 65 or older, or blind, you get an additional standard deduction on top of the base amount.

The tax brackets determine what percentage of your income you pay in tax. The seven brackets for 2024 are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The income ranges for each bracket depend on your filing status. For example, a single filer in 2024 pays 10% on income up to $11,600, then 12% on income from $11,601 to $47,150, and so on. The highest bracket (37%) applies to income above $578,100 for single filers. These bracket ranges also adjust for inflation each year.

Child tax credit and dependent deductions under the current plan

The child tax credit is $2,000 per may have access to child under age 17 at the end of the tax year. This credit reduces your tax dollar-for-dollar, which makes it more valuable than a deduction. To claim it, the child must be a U.S. citizen, national, or resident alien, have a valid Social Security number, and be claimed as your dependent. You must also provide the child's name and SSN on your return.

If you have a child who does not meet the age requirement for the child tax credit, you may be able to claim a dependent exemption or the credit for other dependents, which is $500 per dependent. The rules for who counts as a dependent are strict: the person must live with you for more than half the year (with some exceptions), be a U.S. citizen or resident alien, have a valid SSN, and not file a joint return with a spouse.

What happens when the Tax Cuts and Jobs Act expires in 2026

Unless Congress acts before December 31, 2025, most of the TCJA provisions will expire and revert to the tax law that was in place before 2018. This means the tax brackets will change, the standard deduction will drop, and the child tax credit will fall from $2,000 to $1,000 per child. The exact amounts are set by law and will take effect automatically if no extension is passed.

Because this expiration is scheduled, Congress may vote to extend the TCJA, modify it, or let it expire. Tax planning for 2025 and 2026 depends partly on what Congress does. If you are making financial decisions that depend on your tax situation — such as whether to take a large deduction this year or next year — it is worth understanding that the rules may change. Your tax professional can help you think through the timing of income and deductions if this affects your situation.

State and local tax deductions under the current plan

The TCJA capped the state and local tax (SALT) deduction at $10,000 per year. This deduction covers state income tax, property tax, and sales tax combined — you choose which ones to deduct, but the total cannot exceed $10,000. This cap applies whether you file as single, married filing jointly, or any other status. The $10,000 limit is the same for everyone and does not adjust for inflation.

Before 2018, there was no cap on the SALT deduction, so this change affected people in high-tax states more than others. If you live in a state with high income or property taxes, you may not be able to deduct all of them. This cap is also scheduled to expire on December 31, 2025, which means the SALT deduction could return to being unlimited starting in 2026 if Congress does not extend the cap.

How to find your specific tax bracket and rate for 2024

To find your tax bracket, you need to know your taxable income — that is, your total income minus the standard deduction (or itemized deductions if you itemize). Once you have your taxable income, you look it up in the tax bracket table for your filing status. The IRS publishes these tables every year on its website and in Publication 17, which is free to read.

Your tax bracket tells you the rate you pay on your last dollar of income, not the rate you pay on all your income. This is called your marginal tax rate. Your effective tax rate — the percentage of your total income that goes to federal tax — is usually lower because you pay lower rates on the income in the lower brackets. Tax software and tax professionals calculate both rates for you, but understanding the difference helps you make sense of your return.

Frequently Asked Questions

Will my tax rate change in 2025?

Your 2025 tax return will use the same rates, brackets, and standard deduction as 2024, because the Tax Cuts and Jobs Act is still in effect. The scheduled expiration is December 31, 2025, so changes would take effect starting with your 2026 return, not 2025.

What was the tax plan before 2018?

Before the Tax Cuts and Jobs Act took effect in 2018, there were different tax brackets, a lower standard deduction, and a child tax credit of $1,000 per child. If the TCJA expires without an extension, the tax law will revert to something similar to the pre-2018 structure, though not identical.

Do I have to itemize deductions or take the standard deduction?

You choose whichever is larger for your situation. Most people take the standard deduction because it is simpler and results in a lower tax. You itemize only if your total itemized deductions (mortgage interest, charitable donations, SALT, and others) exceed your standard deduction. Your tax software will calculate both and use the larger one.

Does the child tax credit phase out if I earn too much?

Yes. The child tax credit begins to phase out at $400,000 of modified adjusted gross income for married filing jointly and $200,000 for single filers. For every $1,000 (or fraction thereof) over these thresholds, the credit reduces by $50. You still may receive some credit even at higher incomes, but it decreases as your income rises.

Where can I find the official 2024 tax brackets and standard deduction?

The IRS publishes the official 2024 tax brackets and standard deduction amounts on its website at irs.gov. You can also find them in IRS Publication 17 (Your Federal Income Tax) and Publication 505 (Tax Withholding and Estimated Tax), both available free as PDFs.