What the 2023-24 Tax Brackets and Income-Tax Rates Mean for Your Money

Your tax invoice is basically decided by tax brackets. These are actually simply ranges of taxable earnings. As your taxable earnings strikes up this ladder, every layer will get taxed at progressively greater charges.

How do tax brackets work?

A single particular person with $140,000 in taxable earnings in 2024 can be within the 24% tax bracket. This doesn’t imply all of their earnings is taxed at that fee. Their efficient tax fee can be a lot decrease than that prime fee.

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