December 27, 2023  |  4 MIN READ

Numbers You Need to Know: 2023 and 2024

Key numbers to consider as you ponder crucial goals

Below you’ll find key numbers to consider as you ponder crucial goals like saving enough for retirement and college expenses, amounts to give to charities, and planning for changes in your estate. Keep in mind that, while averages are interesting, your individual situation may differ. As you think about goals such as how to save for your children’s college costs and how to limit this year’s tax bill, please consult a Citi Personal Wealth Management Wealth Advisor, who can coordinate financial planning strategies with your tax advisor.

Figure 1: Cost of Living
Item Expense ($) in dollar amount
Raising a child through age 17 $310,605
Public university for four years $104,108
Private college for four years $223,360
Emergency fund Six months of living expenses
Home $416,100
Retirement 30-plus years of living expenses
Medical costs in retirement $315,000
Annual nursing-home costs $115,008
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This table shows the average cost of living for raising children, paying for education, home ownership, retirement, medical expenses, and nursing home costs in the U.S.
Sources: Future estimated annual expenditures of raising a child, assuming a higher inflation rate of 4 percent after 2020 from Brookings Institution (Released August 2022). Average Cost of College & Tuition from Education Data Initiative (released September 2023). Median Sales Price of Houses Sold for the United States from Federal Reserve Bank of St. Louis (released October 2023). How to plan for rising health care costs from Fidelity (released June 2023). Seniorliving.org.
Figure 2: Family Financial Snapshot
Item % of U.S. Population
Retirement Accounts 40%
Their Own Home 66%
A Residence That Isn't Their Main Home 13%
A Car Or Other Vehicle 90%
Some Form Of Debt 80%
A Credit-Card balance 44%
Mortgages And Other Home-Secured Debt 47%
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This table indicates the percentages of U.S. families who have retirement accounts, own their own homes and vehicles, have debt with credit card balances, mortgages or other home-secured debt.
Sources: Changes in U.S. Family Finances from 2019 to 2022 from the Survey of Consumer Finances (released October 2023).

Please note: With the “Cost of Living” and “Family Financial Snapshot” sections, some data is based on studies and surveys conducted prior to 2023, where updated versions of the studies and surveys were not available.

Figure 3: Taxes
  2023 2024
Earnings subject to Social Security payroll tax: $160,200 $168,600
Maximum federal income-tax rate of 37% if
income above:
$693,750 if married filing jointly
$578,125 if single
$731,200 if married filing jointly
$609,350 if single
3.8% Medicare surtax applies to net
investment income if total income above:
$250,000 if married filing jointly
$200,000 if single
$250,000 if married filing jointly
$200,000 if single
Standard deduction:1 $27,700 if married filing jointly
$13,850 if single
$29,200 if married filing jointly
$14,600 if single
Personal exemption: None None
Gift tax exclusion: $17,000 $18,000
Estate tax exclusion: $12.92 million $13.61 million
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This table compares some key U.S. Federal Income Tax numbers between 2023 and 2024, from payroll taxes and income tax rates to gift and estate tax exclusions.
Sources: IRS and Social Security Administration.
1 For 2024, as in 2023, 2022, 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.
Figure 4: Retirement
2023 2024
Traditional and Roth IRA contribution limit.1 $6,500 ($7,500 if age 50 or older) $7,000 ($8,000 if age 50 or older)
If covered by retirement plan at work, traditional IRA deduction phases out at: $116,000 to $136,000 if married filing jointly
$73,000 to $83,000 if single
$123,000 to $143,000 if married filing jointly
$77,000 to $87,000 if single
If spouse covered by retirement plan but you, aren't, your IRA deduction phases out at: $218,000 to $228,000 in joint income $230,000 to $240,000 in joint income
Eligibility to fund a Roth IRA phases out at these incomes: $218,000 to $228,000 if married filing jointly
$138,000 to $153,000 if single
$230,000 to $240,000 if married filing jointly
$146,000 to $161,000 if single
401(k) contribution limit: $22,500 ($30,000 if age 50 or older) $23,000 ($30,500 if age 50 or older)
SIMPLE IRA contribution limit: $15,500 ($19,000 if age 50 or older) $16,000 ($19,500 if age 50 or older)
SEP IRA contribution limit:2 25% of employee annual compensation, up to $66,000 25% of employee annual compensation, up to $69,000
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This table compares retirement related U.S. Federal Income Tax numbers between 2023 and 2024, from IRA contribution limits to deduction phase out dollar amounts based upon various scenarios.
Sources: IRS and Social Security Administration.
1 There are no income eligibility limits for contributions to a Traditional IRA. But if you or your spouse are covered by a workplace retirement plan, income limits apply for deducting annual contributions. With a Roth IRA, various income eligibility limits apply. Note that earned income is generally required in order to contribute to an IRA. Please see the IRS website for current information: irs.gov/retirement-plans/traditional-and-roth-iras.
2 The employer makes contributions to a SEP IRA for employees. Contribution limits listed in the table are for the employer. Employee contributions are not permitted.
Figure 5: College
2023 2024
UGMA/UTMA account: Up to $17,000 without worrying about gift tax1 Up to $18,000 without worrying about gift tax1
Kiddie tax on unearned income: First $1,250 covered by child’s exemption2 First $1,300 covered by child’s exemption2
529 college savings plans: Can contribute $85,0003 and count it as your gift for next five years ($170,000 per married couple) Can contribute $90,0003 and count it as your gift for next five years ($180,000 per married couple)
Coverdell education savings account: $2,000 maximum contribution $2,000 maximum contribution
Eligibility to contribute phases out at these incomes $190,000 to $220,000 if married filing jointly
$95,000 to $110,000 if single
$190,000 to $220,000 if married filing jointly
$95,000 to $110,000 if single
Hope Scholarship/American Opportunity Credit: $2,500 maximum per student $2,500 maximum per student
Phases out at these incomes: Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single
Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single
Lifetime Learning Credit: $2,000 maximum $2,000 maximum
Phases out at these incomes: Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single
Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single
Education loan interest deduction: $2,500 maximum $2,500 maximum
Phases out at these incomes: $155,000 to $185,000 if married filing jointly
$75,000 to $90,000 if single
$165,000 to $195,000 if married filing jointly
$80,000 to $95,000 if single
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This table compares college expense related U.S. Federal Income Tax numbers between 2023 and 2024, from UGMA/UTMA accounts, 529 plans and Coverdell savings accounts to Lifetime Learning Credits and education loan interest deductions.
Sources: IRS and Social Security Administration.
1 There is no limit but annual gifts above $17,000 in 2023 and $18,000 in 2024 a year typically require a gift tax return to be filed with the IRS. Any amount in excess of $17,000/$18,000 in a year must be counted toward the individual’s lifetime gift-tax exclusion limits referenced above.
2 In 2023 the next $1,250 is taxed at the child’s marginal tax rate. All amounts above $2,500 are taxed at the parents’ marginal tax rate. In 2024 the next $1,300 is taxed at the child’s marginal tax rate. All amounts above $2,600 are taxed at the parents’ marginal tax rate.
3 Five times annual gift-tax exclusion. Consult a tax advisor for important considerations regarding the five times annual gift-tax exclusion.