IRS Bumps Tax Bracket Thresholds 5.4% With Inflation Adjustments

The IRS bumped up income thresholds for tax brackets in its annual inflation adjustment—a smaller tweak than last year’s.

The adjustments look to prevent moving earners whose additional income only keeps up with rising inflation into higher tax brackets.

The agency pushed up income thresholds 5.4%, a smaller uptick from last year’s 7.1%.

The top tax rate of 37% applies to those making over $609,350 for individual single taxpayers, up from $578,125 last year. The lowest threshold—taxed at 10%—rose to cover those making less than $11,600 per year, for single taxpayers, up from $11,000 last year.

The adjustments also ...