IRS Tax Brackets - 2024

IRS Tax Brackets for 2024 Tax Year

Here are the brackets from the Internal Revenue Service for the tax year stated above. This means these are the rates applied for money earned in this given year. Paying taxes is a critical part of building wealth whether we like them or not. A great number of people have lost a fortune trying to avoid taxes, or worse, going to prison.

As you start your passive income journey, the additional money you make per year (say $1,000 - $5,000 USD) may not substantially change your overall tax liability from a gross income standpoint if you're working a full-time job. At some point, if the passive income is not a replacement, but in addition to your W-2 income, you may get bumped into a higher tax bracket. That means the portion that is over the previous bracket will get taxed at the higher rate. 

Tax RateSingle FilersMarried (Filing Jointly)
37%$609,351 or more$731,201 or more
35%$243,726 - $609,350$487,451 - $731,200
32%$191,951 - $243,725$383,901 - $487,450
24%$100,526 - $191,950$201,051 - $383,900
22%$47,151 - $100,525$94,301 - $201,050
12%$11,601 - $47,150$23,201 - $94,300
10%$11,600 or less$23,200 or less