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Tax Brackets for 2025 Revealed
The IRS has introduced updated federal income tax brackets and standard deductions for the year 2025.
The agency increased the income limits for each category in their announcement on Tuesday, affecting tax year 2025 for filings done in 2026. Individuals with taxable income exceeding $626,350 and married couples filing jointly making $751,600 or higher for 2025 are subject to a 37% tax rate.
The IRS also increased amounts for numerous other aspects, such as long-term capital gains thresholds, estate and gift tax exclusion, and qualification for the child tax credit, among various others.
Federal tax brackets for 2025
Federal income tax brackets determine the amount you need to pay based on each portion of your “taxable income,” calculated by subtracting the standard or itemized deductions from your adjusted gross income.
Tax Bracket For Single Filers
Tax Bracket For Married Filers
Tax Bracket For Head Of Household
Lower taxes enacted by former President Donald Trump will automatically expire after 2025 if Congress does not take action. Should the provision end, tax rates will go back to what they were in 2017: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
Higher standard deduction
In 2025, the standard deduction for married couples filing jointly will increase to $30,000, up from $29,200 in 2024. Beginning in 2025, individuals filing taxes on their own can request $15,000, an increase from $14,600.
Trump’s tax cuts also involved an increase in standard deductions, which will expire in 2025 unless Congress prolongs the tax break.
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