Now that we are in 2025, the Updated Internal Revenue Service income tax brackets and higher standard deductions took effect. Depending on your income level, these changes could 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 rate of tax, 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 for them inflation. This helps prevent “tax bracket creeps“, which could push you into a higher tax bracket, even though inflation eats away at your wages.
These new tax changes went into effect on January 1. Here's everything you need to know about next year's income tax brackets, the increase in the standard deduction, and how tax changes could affect your money.
Read more: Will we see more tax breaks next year? Who benefits from Trump's tax plan
How changes in the tax code affect your pay
When the IRS raises your federal income tax brackets, you may fall into a different tax bracket than you did the previous year—even if your income is the same.
For example, if you earned $48,000 last year, you fell into the 22% tax bracket. But if your income stays the same through 2025, you'll drop into the 12% bracket. That means you'll owe less in federal taxes and have less money withdrawn from your paycheck.
If you earn more in 2025 than in 2024, however the amount your salary is increased 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 helps determine how much tax you'll pay for a given tax year, excluding the standard deduction or any itemized tax deductions.
2025 Income Tax Brackets for Individual 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 married filers 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% of 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 |
Standard deduction from 2025
For 2025, the standard tax deduction for singles is increased to $15,000, an increase of $400 from 2024.
IRS Standard Deduction
| Submission status | 2024 year | 2025 year |
|---|---|---|
| Single or married, filing separately | $14,600 | 15,000 dollars |
| Married, filing jointly | $29,200 | 30,000 dollars |
| Head of household | $21,900 | $22,500 |
Source for all charts: IRS (PDF).
Most taxpayers with simple tax returns claim the standard deduction, which reduces their taxable income. If you receive your wages solely from an employer as a W-2 employee, the standard deduction is usually the best way to maximize your tax refund. If you are self employed or you have specific deductions you'd like to claim, you'll itemize your deductions instead.
Other tax changes in 2025 that may help you
There are other tax changes coming next year that could put more money into your paycheck. If you are collecting Social Security, you will receive a 2.5% cost of living adjustment in 2025. The Earned Income Tax Credit also increased to $8,046 for filers with three or more qualifying children.
Also increased were the foreign earned income exclusion, the estate tax credit exclusion, the annual gift exclusion, and the adoption credit.