2025 Tax Bracket Breakdown for Married Couples: Filing Jointly Explained
According to Marca, The IRS has recently released its annual adjustments for the 2025 tax year, and there are significant changes that married couples filing jointly should take note of. If you’re curious about what your tax bracket will look like in 2025, let’s break it down in an easy-to-understand way.
Changes to Tax Brackets
Starting with the tax brackets, for 2025, the 10% tax bracket for married couples filing jointly will rise to $23,850, up from $23,200 in 2024. This means that if your taxable income is below this threshold, you will only pay 10% on that portion of your income. Here’s how the brackets break down if you earn more:
- 12% tax rate: Income over $23,850 up to $96,950.
- 22% tax rate: Income from $96,950 to $171,050.
- 24% tax rate: Income from $171,050 to $394,600.
- 32% tax rate: Income from $394,600 to $501,050.
- 35% tax rate: Income from $501,050 to $751,600.
- 37% tax rate: Income over $751,600.
Protecting Against Bracket Creep
These adjustments are part of the IRS’s strategy to guard against what’s known as “bracket creep.” As explained by Alex Durante, an economist at the Tax Foundation, “Bracket creep occurs when inflation, rather than real increases in income, pushes people into higher income tax brackets.” The 2025 adjustments reflect a 2.8% increase in these thresholds, marking the smallest jump we’ve seen in recent years.
Increase in Standard Deduction
Next up is the standard deduction. For married couples filing jointly, it will increase to $30,000, up from $29,200 in 2024. This standard deduction is a powerful tool to reduce your taxable income. For example, if you and your spouse earn $100,000, applying the standard deduction means you’ll only be taxed on $70,000 of your income.
Also read: SNAP Update: Fastest Ways to Access Food Stamps Up to $1,756 in NYC & NY State
Boost in Earned Income Tax Credit
Additionally, the Earned Income Tax Credit (EITC) is also receiving an increase. In 2025, qualifying families with three or more children can claim a maximum credit of $8,046, up from $7,830 in 2024. This credit can have a significant impact on your tax bill and may even result in a refund if you qualify.
Preparing for Tax Season
So there you have it! With these updates in mind, you can better prepare for tax season. Understanding your tax bracket and knowing about deductions can make a significant difference in your financial planning. Stay informed, plan ahead, and let those numbers work for you!
