The IRS has announced new federal income tax brackets and standard deductions for 2025, with the top rate of 37% applying to individuals with taxable income above $626,350 and married couples filing jointly earning $751,600 or more. The agency also increased figures for other provisions, such as long-term capital gains brackets and the child tax credit eligibility. For 2025, federal income tax brackets include 37% for incomes over $626,350 for single taxpayers, 35% for incomes over $250,525, and 32% for incomes over $197,300, among others. If Congress takes no action, tax brackets will revert to 2017 levels after 2025. The standard deduction will also rise in 2025 to $30,000 for married couples filing jointly and $15,000 for single filers, both increases from the previous year. These changes are a result of former President Donald Trump’s tax cuts, which also included higher standard deductions that will expire after 2025 without legislative action.
Photo credit
www.nbcnews.com
New Federal Income Tax Brackets for 2025 Revealed by IRS
