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IRS announces new federal income tax brackets for 2025

Tom Robbins by Tom Robbins
October 22, 2024
in Investing
IRS announces new federal income tax brackets for 2025
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Federal tax brackets for 2025

Federal income tax brackets show how much you owe on each part of your “taxable income,” which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

  • 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly)
  • 35% for incomes over $250,525 ($501,050 for married couples filing jointly)
  • 32% for incomes over $197,300 ($394,600 for married couples filing jointly)
  • 24% for incomes over $103,350 ($206,700 for married couples filing jointly)
  • 22% for incomes over $48,475 ($96,950 for married couples filing jointly)
  • 12% for incomes over $11,925 ($23,850 for married couples filing jointly)
  • 10% for incomes of $11,925 or less ($23,850 or less for married couples filing jointly)

After 2025, lower taxes enacted by former President Donald Trump will sunset without action from Congress. If the provision expires, the tax brackets will revert to 2017 levels, shifting to 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.

Higher standard deduction

The standard deduction will also increase in 2025, rising to $30,000 for married couples filing jointly, up from $29,200 in 2024. Starting in 2025, single filers can claim $15,000, a bump from $14,600.

Trump’s tax cuts also included higher standard deductions, which will sunset after 2025 if Congress doesn’t extend that tax break. 



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