Inflation Causes IRS to Raise Tax Brackets, Standard Deduction by 5.4%

Here’s an upside to persistent inflation: More of your income will be taxed at lower rates next year.

The Internal Revenue Service announced its annual inflation adjustments to federal income-tax brackets for 2024 Thursday, an increase that slightly outpaces the current inflation rate. This means some Americans will pay less in taxes, said Jim Young, an accounting professor at Northern Illinois University.