IRS Inflation Adjustments For Tax Year 2025
Inflation Adjustments For Tax Year 2025
On October 10, 2024, the Social Security Administration announced a cost of living adjustment announcement of 2.5% for 2025. Starting in January, recipients will see an average increase of $50 per month. Likewise, the Internal Revenue Service announced the 2025 tax rate schedules and other tax changes on October 22, 2024. The standard deduction and marginal rates for the tax year 2025 are listed below.
Standard Deduction:
- Married couples filing jointly: $30,000 ($800 increase from 2024)
- Single taxpayers and married individuals filing separately: $15,000 ($400 increase from 2024)
- Heads of households: $22,500 ($600 increase from 2024)
Marginal Rates:
The seven federal income tax brackets remain in 2025, with rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Federal Income Tax Brackets for 2025 | |||||
|---|---|---|---|---|---|
| Single | Married Filing Jointly | Married Filing Separately | Head of Household | Estates and Trusts | |
| 10% | 0 – $11,925 | $0 – $23,850 | $0 – $11,925 | $0 – $17,000 | $0 – $3,150 |
| 12% | $11,925 –$48,475 | $23,850– $96,950 | $11,925 – $48,475 | $17,000 –$64,850 | |
| 22% | $48,475 – $103,350 | $96,950 – $206,700 | $48,475 – $103,350 | $64,850 – $103,350 | |
| 24% | $103,350 – $197,300 | $206,700– $394,600 | $103,350 – $197,300 | $103,350 – $197,300 | $3,150 – $11,450 |
| 32% | $197,300 – $250,525 | $394,600 – $501,050 | $197,300 – $250,500 | $197,300 – $250,500 | |
| 35% | $250,525 – $626,350 | $501,050 – $751,600 | $250,500 – $375,800 | $250,500 – $626,350 | $11,450 – $15,650 |
| 37% | $626,350+ | $751,600+ | $375,800+ | $626,350+ | $15,650+ |
To read about the inflation adjustments for more than 60 tax provisions, check out IRS Revenue Procedures 2024-40.
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