Individuals who are married and want to determine their tax rate according to their income bracket can easily do this using the tax rate ratio. The ratio is split into seven in terms of percentages, with the rates being 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
These rates are for taxes to be paid in 2024 and will be useful in helping married couples earning an income to calculate how much they are expected to file jointly in taxes.
What are the tax rates for couples filing jointly?
The tax rates for couples filing jointly will result in the following amount using the tax rate ratios.
The 10% ratio.
- Couples filing jointly will pay between $0 and $23,200.
The 12% ratio.
- Couples will pay between $23,200 and $94,300.
The 22% ratio.
- Couples in this category will pay between $94,300 and $201,050.
The 24 ratio.
- Couples who are within this ratio will pay $201,050 to $383,900.
The 32% ratio.
- Americans within this category will pay between $383,900 and $487,450.
The 35% ratio
- Couples in this category will pay between $487,450 and $731,200.
The 37% ratio
- Couples will pay $731,201 or more.
How do I determine the tax rates?
Calculating the amount to be paid in taxes is easy, as the IRS provides the tax rates. However, two factors must be considered for the rates to be adequately determined.
First is the filing status of the individual. The filing status categories are split into single, married filing jointly, married filing separately, head of household, or qualified surviving spouse. These categories will determine how much tax is expected to be paid in line with the tax rates.
Next is your taxable income. Contrary to popular belief, your taxable income does not equal your wages. Rather, it’s the sum of your taxable income (like wages, investment interest, and retirement distributions) minus any adjustments and tax deductions.
2024 adjustment to taxes
The IRS has made some adjustments to tax inflation in 2024. These changes affected more than 60 tax provisions, including tax rate schedules.
The information will be useful in helping taxpayers, irrespective of the category they fall under, pay their taxes at the right time and use the appropriate rates that align with their income bracket.
