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Now that we are here in 2025, the The Internal Revenue Service’s updated income tax bracket and a higher standard deduction takes effect. Depending on your income level, these changes may put more money into your paycheck or increase your tax return next year.
If you fall into a lower tax bracket this year, you’ll pay a lower tax rate, which could slightly increase the amount of money you take home each pay period. A higher standard deduction can also help lower your tax bill or increase your income, in some cases.
It is normal for the IRS to make changes to the tax code each year to account inflation. It helps prevent”tax bracket creep,” which pushes you into a higher tax bracket, even though inflation is eating away at your salary.
These new tax changes went live on Jan. 1. Here’s everything you need to know about next year’s income tax brackets, the standard deduction increase and how the tax changes will affect your money.
Read more: Will We See More Tax Breaks Next Year? Who Benefits Under Trump’s Tax Plan
How changes to the tax code affect your paycheck
When the IRS raises federal income tax brackets, you may fall into a different tax bracket than you did last year — even if your income remains the same.
For example, if you made $48,000 last year, you fall into the 22% tax bracket. But if your income stays at the same level throughout 2025, you’ll fall into the 12% bracket. That means you’re on the hook for less federal taxes and have less money taken out of your paycheck.
If you make more in 2025 than you did in 2024, however, the amount your salary increases will determine where you fall. You may still fall into a lower tax bracket or the same tax bracket. In some cases, your tax bracket and tax rate may increase.
2025 income tax brackets
Your federal income tax bracket helps determine how much you’ll pay in taxes for a tax year, not including the standard deduction or anything else. itemized tax deductions.
2025 income tax brackets for single filers
| Taxable income | Federal tax rate |
|---|---|
| $11,925 or less | 10% |
| $11,926 to $48,475 | $1,192.50 plus 12% of income over $11,925 |
| $48,476 to $103,350 | $5,578.50 plus 22% of income over $48,475 |
| $103,351 to $197,300 | $17,651 plus 24% of income over $103,350 |
| $197,301 to $250,525 | $40,199 plus 32% of income over $197,300 |
| $250,526 to $626,350 | $57,231 plus 35% of income over $250,525 |
| $626,351 or more | $609,350 $188,769.75 plus 37% of income over $626,350 |
2025 income tax brackets for filers who are married, filing jointly
| Taxable income | Federal tax rate |
|---|---|
| $23,850 or less | 10% |
| $23,851 to $96,950 | $2,385 plus 12% of income over $23,850 |
| $96,951 to $206,700 | $11,157 plus 22% of income over $96,950 |
| $206,701 to $394,600 | $35,302 plus 24% of income over $206,700 |
| $394,601 to $501,050 | $80,398 plus 32% of income over $394,600 |
| $501,051 to $751,600 | $114,462 plus 35% of income over $501,050 |
| $751,601 or more | $202,154.50 plus 37% of income over $751,600 |
2025 income tax brackets for head of household filers
| Taxable income | Federal tax rate |
|---|---|
| $17,000 or less | 10% |
| $17,001 to $64,850 | $1,700 plus 12% on income over $17,000 |
| $64,851 to $103,350 | $7,442 plus 22% of income over $64,850 |
| $103,351 to $197,300 | $15,912 plus 24% of income over $103,350 |
| $197,301 to $250,500 | $38,460 plus 32% of income over $197,300 |
| $250,501 to $626,350 | $55,484 plus 35% of income over $250,500 |
| $626,351 or more | $187,031.50 plus 37% of income over $626,350 |
2025 standard deduction
For 2025, the standard tax deduction for single filers is increased to $15,000, a $400 increase from 2024. For married filers filing jointly, the standard deduction is increased to $30,000, up $800 from last year.
IRS Standard deduction
| Filing status | 2024 | 2025 |
|---|---|---|
| Single or married, file separately | $14,600 | $15,000 |
| Married, filing jointly | $29,200 | $30,000 |
| Head of household | $21,900 | $22,500 |
Source of all charts: IRS (PDF).
Most taxpayers with simple tax returns claim the standard deduction, which will reduce their taxable income. If you only receive your wages from an employer as a W-2 employee, the standard deduction is often the best way to maximize your tax refund. If you self-employed or have certain deductions you want to claim, you itemize your deductions.
Other tax changes in 2025 that may help you
There are other tax changes happening next year that could put more money in your paycheck. When you collect Social Security, you will receive a 2.5% cost-of-living-adjustment in 2025. The Earned Income Tax Credit also increases to $8,046 for filers with three or more qualifying children.
The Foreign Earned Income Exclusion, estate tax credits exclusion, annual exclusion for gifts and adoption credit also increased.
