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2025 Federal Income Tax Brackets
Posted Date November 1, 2024 Posted Time 12:00 am Published in Service2Client
According to estimates, inflation adjustments to the Internal Revenue Code are expected to yield increases of 2.8 percent compared to 2024 amounts. This means wider tax brackets and increased exemptions, among other things. With the U.S. Bureau of Labor Statistics consumer price index (CPI) moderating, this increase is about 50 percent less than 2024’s inflation adjustment. Below, we’ll look at what the projected 2025 inflation adjustment means in terms of dollars and cents for you and your taxes.Individual Income Tax Brackets
The tables below illustrate the individual income tax rates and brackets for 2025.
Individual Income Tax Brackets & Rates: Tax Year 2025
Single Taxpayers 10% 0 – $11,925 12% $11,926 – $48,475 22% $48,476 – $103,350 24% $103,351 – $197,300 32% $197,301 – $250,525 35% $250,526 – $626,350 37% $626,351 and Over Married Filing Jointly 10% 0 – $23,850 12% $23,851 – $96,950 22% $96,951 – $206,700 24% $206,701 – $394,600 32% $394,601 – $501,050 35% $501,051 – $751,600 37% $751,601 and Over Married Filing Separately 10% 0 – $11,925 12% $11,926 – $48,475 22% $48,476 – $103,350 24% $103,351 – $197,300 32% $197,301 – $250,525 35% $250,526 – $375,800 37% $375,801 and Over Heads of Household 10% 0 – $17,000 12% $17,001- $64,850 22% $64,851 – $103,350 24% $103,351 – $197,300 32% $197,301 – $250,500 35% $250,501 – $626,350 37% $626,351 and Over Trusts & Estates Tax Brackets
The table below illustrates what the income rates and brackets are expected to look like for Trusts and Estates in 2025.
Projected Trusts and Estates Tax Brackets & Rates: Tax Year 2025 10% 0 – $3,150 24% $3,151- $11,450 35% $11,451 – $15,650 37% $15,651 and Over Standard Deduction Amounts
The table below illustrates what the projected standard deduction amounts will be for 2025, with a comparison to 2024.
Projected Standard Deduction Amounts 2024 2025 Single $14,600 $15,750 Married Filing Jointly $29,200 $31,500 Married Filing Separately $14,600 $15,750 Head of Household $21,900 $23,625 Alternative Minimum Tax (AMT)
The table below illustrates the anticipated AMT exemptions for 2025.
AMT Exemption Amounts
Tax Year 2025Single $88,100 Married Filing Jointly $137,000 Married Filing Separately $68,500 Trust & Estates $30,700 Capital Gains
The rates applied to long-term capital gains are not expected to change for 2025; however, the brackets that apply to different rates will expand. Note that, in considering the table below, a 20 percent tax rate applies to capital gains that are over the 37 percent ordinary tax rate threshold. Furthermore, capital gains on art and collectibles are subject to other exceptions.
Maximum Capital Gains Rates for 2025 Zero Rate 15% Rate Single $48,350 $533,400 Married Filing Jointly $96,700 $600,050 Married Filing Separately $48,350 $300,000 Head of Household $64,750 $566,700 Trusts & Estates $3,250 $15,900 Conclusion
First, it’s important to remember that all the figures above are only projections. The IRS will not publish the official numbers until later this year. Moreover, as these rates and brackets have increased, they have done so significantly less than in 2024 and 2023, largely driven by lower inflation.
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