The Internal Revenue Service unveiled its tax brackets for 2025 on Tuesday, with moderate adjustments to the income ranges for marginal rates.
The 2025 tax year, which will have a filing deadline of April 15, 2026, will be the final one under the Tax Cuts and Jobs Act, more commonly known as the “Trump tax cuts,” unless the reduced rates are extended. The starting annual income ranges for each tax rate increased based on inflation, according to the IRS, with each income range going up roughly 2.8% from tax year 2024.
For tax year 2025, the marginal rate for individuals who make $11,925 annually or less, or $23,850 or less for joint married filers, is 10%. Individual filers who make more than $11,925 annually, or more than $23,850 for joint married filers, will have a marginal rate of 12%.
Individuals who make more than $48,475 annually or joint filers who make more than $96,950 annually will have a marginal tax rate of 22% for tax year 2025. Individuals who make more than $103,350 annually or joint filers who make more than 206,700 annually will have a marginal tax rate of 24%.
For individual filers who make more than $197,300 annually or joint filers who make more than $394,600 annually, the marginal tax rate for tax year 2025 is 32%. Individual filers who make more than $250,525 annually or joint filers who make more than $501,050 annually will have a tax rate of 35%.
The highest marginal tax rate of 37% in tax year 2025 is for individuals who make more than $626,350 annually or joint filers making more than $751,600 annually.
The standard deductions also increased for tax year 2025. For individual filers, the standard deduction is $15,000 (up from $14,600 in 2024), and for joint filers, it is $30,000 (up from $29,200 in 2024). For heads of household, the standard deduction will be $22,500 for 2025 (up from $21,900 in 2024).
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Unless Congress extends the lower tax brackets under the Tax Cuts and Jobs Acts, the old brackets of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% will return for tax year 2026.
Congress has until next year to either extend portions or the entirety of the law or let the lower tax rates lapse. The November election determining control of the White House, Senate, and House of Representatives could significantly impact the fate of the lower tax brackets.