The Internal Revenue Service (IRS) has announced new federal tax brackets for 2025, reflecting adjustments for inflation. The standard deduction will rise to $30,000 for married couples filing jointly and $15,000 for individual taxpayers.
Additionally, there will be modifications to long-term capital gains brackets, the estate tax exemption, and eligibility criteria for the child tax credit, among other changes.
In its announcement, the IRS increased the income thresholds for each bracket, applicable to the tax year 2025 for returns submitted in 2026. The highest tax rate of 37% will apply to individuals with taxable income exceeding $626,350 and to married couples filing jointly with earnings of $751,600 or more by 2025.
The IRS has also raised the limits for numerous other provisions, including long-term capital gains brackets, the estate and gift tax exemption, and eligibility for the earned income tax credit, among others.
The federal income tax brackets determine the tax owed on each segment of your “taxable income,” which is derived by subtracting the greater of the standard or itemized deductions from your adjusted gross income
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IRS: Federal Tax Brackets for 2025
Following 2025, the lower tax rates established by former President Donald Trump will lapse unless Congress takes action. If this provision expires, the tax brackets will revert to the 2017 levels of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
🔴 Marginal tax brackets for tax year 2025: Single filers
| Taxable income | Tax rate |
| $11,925 or less | 10% |
| $11,926 to $48,475 | $1,192.50 – Plus 12% of amount over $11,925 |
| $48,476 to $103,350 | $5,578.50 – Plus 22% of amount over $48,475 |
| $103,351 to $197,300 | $17,651 – Plus 24% of amount over $103,350 |
| $197,301 to $250,525 | $40,199 – Plus 32% of amount over $197,300 |
| $250,526 to $626,350 | $57,231 – Plus 35% of amount over $250,525 |
| $626,351 and above | $188,769.75 – Plus 37% of amount over $626,350 |
🔴 Marginal tax brackets for tax year 2025: Married filing jointly
| Taxable income | Tax rate |
| $23,850 or less | 10% |
| $23,851 to $96,950 | $2,385 – Plus 12% of amount over $23,850 |
| $96,951 to $206,700 | $11,157 – Plus 22% of amount over $96,950 |
| $206,701 to $394,600 | $35,302 – Plus 24% of amount over $206,700 |
| $394,601 to $501,050 | $80,398 – Plus 32% of amount over $394,600 |
| $501,051 to $751,600 | $114,462 – Plus 35% of amount over $501,050 |
| $751,601 and above | $202,154.50 – Plus 37% of amount over $751,600 |
Increased Standard Deduction
The standard deduction is set to rise in 2025, increasing to $30,000 for married couples filing jointly, up from $29,200 in 2024.
Single filers will be able to claim $15,000, an increase from $14,600.
The tax cuts implemented by Trump also included higher standard deductions, which will cease after 2025 unless Congress extends this tax relief.
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