We think it’s best to start with what most taxpayers are interested in, and that’s the individual tax provisions. The proposed plan includes tax provisions that would affect Americans of various income levels. Read on to see what the changes would look like.
Tax rates
The new 2024 tax plan calls for a top individual tax rate of 39.6%, up from 37%, for single filers earning more than $400,000 (for married couples, the threshold is $450,000). The marginal income tax rate was previously reduced as part of former President Trump’s signature tax legislation.
Capital gains tax
The new 2024 tax plan would make some changes here as well. The highest capital gains rate is currently 20% (or 23.8% if the NIIT applies—we’ll talk about this later). For individuals who earn a taxable income of more than $1 million, the budget would tax the capital gains at ordinary rates, with 37% usually being the highest rate, or 39.6% if the top tax rate is raised.
