IRS Income Tax Brackets 2025: A Comprehensive Guide
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IRS Income Tax Brackets 2025: A Comprehensive Guide
The Internal Revenue Service (IRS) periodically adjusts income tax brackets to account for inflation and ensure that taxpayers are taxed fairly. For 2025, the IRS has released updated income tax brackets that will impact individual filers and married couples filing jointly.
Individual Filers
| Tax Bracket | Taxable Income | Tax Rate |
|---|---|---|
| 10% | $0 – $12,950 | 10% |
| 12% | $12,951 – $47,750 | 12% |
| 22% | $47,751 – $95,500 | 22% |
| 24% | $95,501 – $165,550 | 24% |
| 32% | $165,551 – $215,950 | 32% |
| 35% | $215,951 – $539,900 | 35% |
| 37% | $539,901 – $1,077,350 | 37% |
| 39.6% | $1,077,351 and above | 39.6% |
Married Couples Filing Jointly
| Tax Bracket | Taxable Income | Tax Rate |
|---|---|---|
| 10% | $0 – $25,900 | 10% |
| 12% | $25,901 – $84,200 | 12% |
| 22% | $84,201 – $171,050 | 22% |
| 24% | $171,051 – $323,900 | 24% |
| 32% | $323,901 – $431,900 | 32% |
| 35% | $431,901 – $539,900 | 35% |
| 37% | $539,901 – $1,077,350 | 37% |
| 39.6% | $1,077,351 and above | 39.6% |
Standard Deduction and Personal Exemptions
In addition to income tax brackets, the IRS also adjusts the standard deduction and personal exemptions for inflation. For 2025, the standard deduction will be as follows:
- Single: $13,850
- Married filing jointly: $27,700
- Married filing separately: $13,850
- Head of household: $20,800
Personal exemptions have been eliminated for tax years beginning after 2017.
Tax Rate Schedule
The tax rate schedule for 2025 is as follows:
| Taxable Income | Tax |
|---|---|
| $0 – $12,950 | $0 |
| $12,951 – $47,750 | $1,554 + 12% of excess over $12,950 |
| $47,751 – $95,500 | $5,662 + 22% of excess over $47,750 |
| $95,501 – $165,550 | $18,665 + 24% of excess over $95,500 |
| $165,551 – $215,950 | $33,701 + 32% of excess over $165,550 |
| $215,951 – $539,900 | $50,479 + 35% of excess over $215,950 |
| $539,901 – $1,077,350 | $152,628 + 37% of excess over $539,900 |
| $1,077,351 and above | $381,034 + 39.6% of excess over $1,077,350 |
Impact on Taxpayers
The updated income tax brackets for 2025 will have the following impact on taxpayers:
- Individuals and married couples filing jointly will have slightly higher standard deductions.
- The tax brackets have been adjusted for inflation, meaning that taxpayers will pay slightly less in taxes at each income level.
- The highest tax bracket remains unchanged at 39.6%.
Conclusion
The IRS income tax brackets for 2025 provide taxpayers with a clear understanding of the taxes they will owe based on their income. By understanding the brackets and standard deductions, taxpayers can plan their finances accordingly and minimize their tax liability.
Closure
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