Tax Brackets Announced for 2025: What’s Changing

Will your 2025 income tax bracket be different than it is in 2024? Each year, the Internal Revenue Service (IRS) evaluates tax provisions and adjusts them if necessary. Due to the continued high inflation rate, the IRS recently released the 2025 federal tax brackets, which again increase the income thresholds of each tax bracket, as well as deduction amounts.

What are tax brackets?

Income tax brackets are ranges of income taxed at specific rates. For example, one range of income may be taxed at 10 percent, the next range at 12 percent, and so on. The rates and bracket thresholds vary based on filing status (single, married filing jointly, etc.).

Tax brackets for 2025

In 2025, the tax brackets range from 10 percent to 37 percent. These rates are the same as 2024, but the difference is the taxable income range for each rate.

If your income is over $626,350 as an individual or $751,600 as a joint filer, your 2025 marginal tax rate is 37 percent. In 2024, the income level for the 37 percent marginal tax rate was $609,350/731,200 for married couples filing jointly.

Here’s a summary of the other tax bracket changes for 2025:

• 35 percent for incomes over $250,525 ($501,050 for married couples filing jointly)
  • 2024 income range: over $243,725 single/$487,450 married filing jointly
• 32 percent for incomes over $197,300 ($394,600 for married couples filing jointly)
  • 2024 income range: over $191,950 single/$383,900 married filing jointly
• 24 percent for incomes over $103,350 ($206,700 for married couples filing jointly)
  • 2024 income range: over $100,525 single/$201,050 married filing jointly
• 22 percent for incomes over $48,475 ($96,950 for married couples filing jointly)
  • 2024 income range: $47,150 single/$94,300 married filing jointly
• 12 percent for incomes over $11,925 ($23,850 for married couples filing jointly)
  • 2024 income range: $11,600 single/$23,200 married filing jointly
• 10 percent for incomes less than $$11,925 ($23,850 for married couples filing jointly)
  • 2024 income range: less than $11,600 single/$23,200 married filing jointly

Video: How IRA Activity Can Affect Tax Brackets

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2025 standard deductions on the rise, too

The IRS increased the 2025 standard deduction amounts as well. The standard deduction is a fixed amount you can deduct from your federal income taxes that reduces your taxable income. The amount varies depending on your filing status.

When you file your taxes, you have two choices:

1. Take the standard deduction: You subtract the standard deduction amount from your total income. The result is your taxable income, which is what your tax is based on.
2. Itemize deductions: List out specific deductible expenses (like mortgage interest, charitable donations, medical expenses, etc.). If these add up to more than the standard deduction, you might choose this route.

[Related: Tax Time Checklist]

The 2025 standard deduction amounts are:

• $30,000 for married couples filing jointly, an increase of $800 from tax year 2024
• $15,000 for single taxpayers and married individuals filing separately, an increase of $400 from 2024
• $22,500 for heads of households, an increase of $600 from the amount for tax year 2024

Calculating your marginal tax rate

The marginal tax rate refers to the tax rate you pay on income exceeding the amount of the standard deduction in your tax bracket. In other words, you won’t be charged that rate on your entire income – just the portion determined to be your taxable income.

The IRS charts explain how to determine your tax responsibility: