2025 Tax Brackets Revealed: What You Need to Know for Your Tax Planning
According to The Street, Despite a decrease in inflation, taxpayers can expect adjustments to their 2025 taxes. On October 22, 2024, the IRS revealed its inflation-adjusted tax brackets for the upcoming year, which includes an increase in the standard deduction and income thresholds. However, this year’s adjustment of about 2.8% marks the smallest increase in three years. This modest adjustment comes as inflation, measured by the consumer price index, reaches its lowest levels since February 2021.
To provide context, previous adjustments included a 5.4% increase for 2024 and a 7.1% boost for 2023. The IRS aims to mitigate “bracket creep,” which occurs when inflation pushes taxpayers into higher tax brackets without a real increase in purchasing power.
Changes to the Standard Deduction
For tax year 2025, the standard deduction has been raised by approximately 2.8%. This deduction is commonly used by taxpayers to lower their taxable income, ultimately reducing their tax bills. The specific standard deduction amounts depend on filing status:
Tax year 2024 standard deductions vs tax year 2025 standard deductions
| Filing Type | Tax Year 2024 | Tax Year 2025 | Change |
|---|---|---|---|
| Single filers | $14,600 | $15,000 | $400 or 2.8% |
| Married filing jointly | $29,200 | $30,000 | $800 or 2.8% |
| Married filing separately | $14,600 | $15,000 | $400 or 2.8% |
| Heads of household | $21,900 | $22,500 | $600 or 2.8% |
Additional Standard Deduction for Seniors and Disabled Individuals
Taxpayers aged 65 and older can claim an additional standard deduction of $2,000 if they are single filers or heads of household. Married couples can receive an additional $800 per qualifying individual. Furthermore, individuals classified as blind by the IRS can also claim extra deductions, which amount to $1,850 for single filers and heads of households, and $1,500 for each qualifying individual in a married couple.
Taxpayers can find their applicable standard deduction using the IRS’ standard deduction calculator.
Other Tax Breaks for 2025
The Earned Income Tax Credit for qualifying taxpayers with three or more children will rise to $8,046 for tax year 2025, an increase of $216 from the $7,830 cap in 2024. Additionally, the Estate Tax Credit has also increased by 2.8%, raising the basic exclusion amount for estates of decedents who pass away in 2025 to $13,990,000 (up from $13,610,000 in 2024).
Tax Brackets for Tax Year 2025
The IRS has outlined seven federal tax brackets for 2025, with income limits adjusted by 2.8% across the board. Here’s a breakdown of the tax rates based on filing status:
2025 tax brackets for single filers
| Taxable Income | Tax rate |
|---|---|
| $0–$11,925 | 10% of the taxable income |
| $11,926–$48,475 | $1,192.50 + 12% of the amount over $11,925 |
| $48,476–$103,350 | $5,578.50 + 22% of the amount over $48,475 |
| $103,351–$197,300 | $17,651 + 24% of the amount over $103,350 |
| $197,301–$250,525 | $40,199 plus 32% of the amount over $197,300 |
| $250,526–$626,350 | $57,231 + 35% of the amount over $250,525 |
| $626,351 and above | $188,769.75 + 37% of the amount over $626,350 |
2025 tax brackets for married couples filing jointly
| Taxable Income | Tax rate |
|---|---|
| $0–$23,850 | 10% of the taxable income |
| $23,851–$96,950 | $2,385 + 12% of the amount over $23,850 |
| $96,951–$206,700 | $11,157 + 22% of the amount over $96,950 |
| $206,701–$394,600 | $35,302 + 24% of the amount over $394,600 |
| $394,601–$501,050 | $80,398 plus 32% of the amount over $394,600 |
| $501,051–$751,600 | $114,462 + 35% of the amount over $501,050 |
| $751,601 and above | $202,154.50 + 37% of the amount over $751,600 |
2025 tax brackets for married couples filing jointly
| Taxable Income | Tax rate |
|---|---|
| $0–$23,850 | 10% of the taxable income |
| $23,851–$96,950 | $2,385 + 12% of the amount over $23,850 |
| $96,951–$206,700 | $11,157 + 22% of the amount over $96,950 |
| $206,701–$394,600 | $35,302 + 24% of the amount over $394,600 |
| $394,601–$501,050 | $80,398 plus 32% of the amount over $394,600 |
| $501,051–$751,600 | $114,462 + 35% of the amount over $501,050 |
| $751,601 and above | $202,154.50 + 37% of the amount over $751,600 |
2025 tax brackets for married couples filing separately
| Taxable Income | Tax rate |
|---|---|
| $0–$11,925 | 10% of the taxable income |
| $11,926–$48,475 | $1,192.50 + 12% of the amount over $11,925 |
| $48,476–$103,350 | $5,578.50 + 22% of the amount over $48,475 |
| $103,351–$197,300 | $17,651 + 24% of the amount over $103,350 |
| $197,301–$250,525 | $40,199 plus 32% of the amount over $197,300 |
| $250,526–$375,800 | $57,231 + 35% of the amount over $250,525 |
| $375,801 and above | $101,077.25 + 37% of the amount over $375,800 |
2025 tax brackets for heads of household
| Taxable income | Tax rate |
|---|---|
| $0–$17,000 | 10% of the taxable income |
| $17,001–$64,850 | $1,700 + 12% of the amount over $17,000 |
| $64,851–$103,350 | $7,442 + 22% of the amount over $64,850 |
| $103,351–$197,300 | $15,912 + 24% of the amount over $103,350 |
| $197,301–$250,500 | $38,460 plus 32% of the amount over $197,300 |
| $250,501–$626,350 | $55,484 + 35% of the amount over $250,500 |
| $626,351 and above | $187,031.50 + 37% of the amount over $626,350 |
Filing Deadlines for 2025 Taxes
Tax brackets are applied to income earned within the year, and the filing period for 2025 taxes will begin in early 2026, concluding in April 2026, unless an extension is granted.
The Future of Trump’s Tax Cuts
The Tax Cuts and Jobs Act of 2017, signed by former President Donald Trump, significantly altered the U.S. tax landscape, including nearly doubling the standard deduction and lowering the corporate tax rate to 21%. This Act is poised to expire in 2026 unless Congress intervenes. Trump has indicated plans to extend the cuts, while Vice President Kamala Harris has committed not to raise taxes for individuals earning under $400,000 annually.
As tax season approaches, taxpayers should stay informed about these changes to maximize their deductions and plan accordingly for the future.
