IRS Announces Higher Standard Deduction, New Tax Brackets for 2025

Taxpayers will see higher standard deductions and new tax brackets for 2025, the Internal Revenue Service announced recently.

The standard deduction, which reduces taxable income, will increase to $13,850 for single filers and $27,700 for married couples filing jointly in 2025. This represents an increase of $2,550 for single filers and $4,300 for married couples compared to the 2024 standard deduction amounts.

The new tax brackets for 2025 are as follows:

• 10% for taxable income up to $11,000 for single filers and $22,000 for married couples filing jointly
• 12% for taxable income between $11,001 and $44,725 for single filers and $22,001 and $89,450 for married couples filing jointly
• 22% for taxable income between $44,726 and $89,450 for single filers and $89,451 and $178,900 for married couples filing jointly
• 24% for taxable income between $89,451 and $178,900 for single filers and $178,901 and $268,350 for married couples filing jointly
• 32% for taxable income between $178,901 and $268,350 for single filers and $268,351 and $536,700 for married couples filing jointly
• 35% for taxable income between $268,351 and $536,700 for single filers and $536,701 and $1,073,400 for married couples filing jointly
• 37% for taxable income over $536,700 for single filers and $1,073,401 for married couples filing jointly

These changes are intended to adjust the tax code for inflation and provide tax relief to taxpayers. The IRS encourages taxpayers to use the online Tax Withholding Estimator to make sure their withholding is correct.

For more information, visit the IRS website.