2024 Federal Tax Rates and Contribution Limits

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New Tax Rates for 2024

The table above shows the new Federal Income tax rates, standard deduction amounts and the Social Security Income Tax limit for 2024.

New IRA and 401K Limits for 2024

The maximum 401K contribution for 2024 is $23,000 -- with an additional $7,500 allowed for anyone age 50 and above.

For those eligible for IRA and Roth IRA contributions, the limit has increased to $7,000 and $8,000 for those over age 50

Gift Tax Annual Exclusion

Effective January 1, 2024, the gift tax annual exclusion will increase to $18,000 per recipient. This means you can gift this amount to as many people as you wish in 2024 without using up your lifetime gift and estate tax exemption or paying gift tax. Married couples who gift-split may gift a combined $36,000 per person in 2024 without making a taxable gift.

Combined Gift and Estate Tax Exemption

Another significant change, effective January 1, 2024, is the combined gift and estate tax exclusion increase. It rises from $12.92 million to $13.61m ($27.22 million for a married couple) effective Jan 1, 2024. The combined gift and estate tax exemption is the total amount of gifts a person may make during their lifetime, including transfers made at death, before being on the hook for gift or estate tax.