Tax brackets 2025
Discover what the 2025 tax bracket updates and adjustments mean for your income and deductions. Or, if you want to speak to a financial advisor, answer a few simple questions below, and we’ll connect you to an expert.
Summary
The top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 and $751,600 for married couples filing jointly.
The Tax Cuts and Jobs Act is set to expire after 2025, potentially raising tax rates in 2026.
Unbiased will match you with a financial advisor to help you navigate the 2025 tax brackets and optimize your financial planning.
What do the 2025 federal income tax brackets look like?
If you’ve been wondering, "What will the tax brackets be in 2025?" the IRS has finalized its figures.
Understanding where your income fits into these 2025 tax brackets can help you better plan for the year ahead.
Single filers
For single filers, the tax brackets for 2025 have been adjusted for inflation.
These adjustments are designed to provide relief, particularly for lower and middle-income earners, by ensuring that a larger portion of income is taxed at lower rates.
| Tax rate | Income range |
|---|---|
| Tax rate | Income range |
| 10% | Up to $11,925 |
| 12% | $11,926 to $48,475 |
| 22% | $48,476 to $103,350 |
| 24% | $103,351 to $197,300 |
| 32% | $197,301 to $250,525 |
| 35% | $250,526 to $626,350 |
| 37% | Over $626,350 |
Married couples filing jointly
For married couples filing jointly, the 2025 tax brackets provide expanded thresholds, helping couples manage their tax burdens with a broader range for each bracket and ensuring that tax liabilities align more closely with real earnings.
| Tax rate | Income range |
|---|---|
| Tax rate | Income range |
| 10% | Up to $23,850 |
| 12% | $23,851 to $96,950 |
| 22% | $96,951 to $206,700 |
| 24% | $206,701 to $394,600 |
| 32% | $394,601 to $501,050 |
| 35% | $501,051 to $751,600 |
| 37% | Over $751,600 |
Head of household filers
The 2025 tax brackets for head of household filers offer incremental adjustments designed to ease the tax burden for those supporting dependents.
These updates ensure that taxpayers in this category benefit from inflation-based changes, especially as they often face unique financial responsibilities.
| Tax rate | Income range |
|---|---|
| Tax rate | Income range |
| 10% | Up to $17,000 |
| 12% | $17,001 to $64,850 |
| 22% | $64,851 to $103,350 |
| 24% | $103,351 to $197,300 |
| 32% | $197,301 to $250,500 |
| 35% | $250,501 to $626,350 |
| 37% | Over $626,350 |
In 2025, you’ll be filing taxes for your 2024 income, so it’s essential to reference the official 2024 tax rates and brackets when preparing your return.
What are the key 2025 tax changes beyond brackets?
Beyond the 2025 tax bracket changes, there are other changes, such as:
Expiration of 2017 tax cuts
The Tax Cuts and Jobs Act (TCJA) of 2017 brought significant tax relief to many Americans, but several of its provisions are set to expire at the end of 2025. If no new legislation is passed, tax rates could revert to pre-2017 levels, which would mean an increase for many filers.
This would affect a range of brackets, likely increasing the tax burden across income levels and impacting deductions and credits that were temporarily increased or expanded under the TCJA.
For taxpayers, this could mean higher marginal rates starting in 2026 unless Congress intervenes.
Standard deduction adjustments
The standard deduction for the 2025 tax year has been raised to keep pace with inflation, offering taxpayers some additional relief.
For single filers, the deduction increases to $15,000, up from $14,600 in 2024.
Married couples filing jointly will see their deduction rise to $30,000 from $29,200.
Head of household filers will benefit from a new deduction of $22,500, up from $21,900.
These changes can reduce taxable income, providing a small buffer against inflation.
As a result, taxpayers in all filing categories can expect to retain more of their income.
What are some other notable 2025 tax adjustments?
These adjustments are worthwhile taking note of:
Capital gains tax updates
The capital gains tax rates in 2025 are also adjusted with inflation-based income thresholds.
For long-term capital gains, the 0% rate applies to income up to $48,350 for single filers and $96,700 for married couples filing jointly.
The 15% rate will cover incomes from $48,351 to $533,400 for single filers and $96,701 to $600,050 for married couples.
Those with income above these amounts will pay the top rate of 20% on capital gains.
These updates may impact taxpayers who rely on investment income and need to consider the timing of asset sales.
Careful planning will help ensure that taxpayers can make the most of these adjusted thresholds.
Changes to the child tax credit
The child tax credit for 2025 remains unchanged, with a maximum of $2,000 per qualifying child under the age of 17.
Parents can claim this credit as long as their modified adjusted gross income is below $200,000 for single filers or $400,000 for married couples filing jointly. However, only $1,700 of this credit is refundable, meaning that families with zero tax liability can still receive up to this amount as a refund.
It’s important to note that the current terms of the Child Tax Credit are set to expire after the 2025 tax year.
Unless Congress acts to extend the current structure, the maximum credit is scheduled to drop to $1,000 per child starting in 2026.
Families who rely on this credit should plan ahead for potential changes in their tax liabilities.
Earned income tax credit (EITC)
The EITC parameters are adjusted annually for inflation.
For 2025, the maximum credit for a family with three or more children rises to $8,046, up from $7,830 in 2024.
Additionally, the income limits to qualify for the EITC have been raised slightly, helping low- to moderate-income earners retain more of their income by qualifying for this refundable credit. These adjustments make the EITC more accessible, providing valuable support for working families.
How will the 2025 tax brackets & changes affect you?
Tax brackets 2025 changes may affect you as follows:
Impact on middle-income households
Middle-income households stand to benefit from the inflation-adjusted tax bracket 2025 thresholds and higher standard deductions, which could lower overall tax bills.
However, if the TCJA provisions expire after 2025, these households might face a higher tax burden starting in 2026, emphasizing the importance of long-term tax planning.
Considerations for high-income earners
High-income earners should prepare for a potential rise in tax liabilities if the TCJA sunsets.
While the 2025 capital gains thresholds and tax brackets provide some short-term relief, planning is essential to minimize taxes on investments and income, particularly if top tax rates increase.
How to prepare for 2025 tax bracket changes
Proactive preparation is key to managing the effects of the 2025 tax bracket changes.
Here’s how to stay ahead:
Adjust withholdings: Review your current withholdings to ensure they align with the updated tax brackets for 2025.
Consult a tax professional: Seek professional advice to navigate complex scenarios, such as capital gains planning or maximizing deductions.
Revisit financial plans: Use the higher standard deduction and adjusted thresholds to reassess your investment strategy and optimize tax savings.
Plan for the future: Evaluate your 2024 tax strategy as a baseline to anticipate how the 2025 adjustments will affect your overall financial outlook.
By staying informed and planning effectively, you can take full advantage of the finalized 2025 tax bracket changes and avoid surprises in the year ahead.
Get expert financial advice
With the tax brackets 2025 and other updates, there’s plenty of room to make the most of these changes - if you plan ahead.
Staying informed, reviewing your finances, and making small adjustments now can help you maximize your benefits and avoid surprises. A little preparation today can go a long way toward smoother tax seasons in the future.
Let Unbiased match you with a financial advisor for expert financial advice on navigating the 2025 tax brackets and maximizing your tax savings.
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