Tax Brackets 2025

The IRS has announced the new federal income tax brackets and other fiscal thresholds for 2025. Here are some highlights ..

INCOME TAX BRACKETS FOR SINGLE FILERS:
10% $0 to $11,925
12% $11,925 to $48,475
22% $48,475 to $103,350
24% $103,350 to $197,300
32% $197,300 to $250,525
35% $250,525 to $626,350
37% $626,350 or more

INCOME TAX BRACKETS FOR MARRIED INDIVIDUALS FILING JOINT RETURNS:
10% $0 to $23,850
12% $23,850 to $96,950
22% $96,950 to $206,700
24% $206,700 to $394,600
32% $394,600 to $501,050
35% $501,050 to $751,600
37% $751,600 or more

INCOME TAX BRACKETS FOR HEADS OF HOUSEHOLDS:
10% $0 to $17,000
12% $17,000 to $64,850
22% $64,850 to $103,350
24% $103,350 to $197,300
32% $197,300 to $250,500
35% $250,500 to $626,350
37% $626,350 or more
  
STANDARD DEDUCTION:
The standard deduction will increase in 2025 by $400 for single filers and by $800 for joint filers. Seniors over age 65 may claim an additional standard deduction of $2,000 for single filers and $1,600 for joint filers.

- Standard Deduction Amounts :
Tax Filing: Single $15,000
Tax Filing: Married Filing Jointly $30,000
Tax Filing: Head of Household $22,500

CAPITAL GAINS TAX:
Short term capital gains are added to taxable income and are therefore taxed at your marginal income tax rate as shown above. Long-term capital gains (> one year between purchase and sale) use different brackets and rates.

- For Unmarried Individuals, Taxable Income Over: 
0% / $0
15% / $48,350
20% /  $533,400

- For Married Individuals Filing Joint Returns, Taxable Income Over:
0% / $0
15% /  $96,700
20% / $600,050

- For Heads of Households, Taxable Income Over:
0% / $0
15% / $64,750
20% / $566,700

ANNUAL GIFT TAX EXCLUSION:
In 2025, the first $19,000 of gifts per year to any person are excluded from tax, up from $18,000 the previous year. The annual exclusion limit for gifts to spouses who are not citizens of the United States is increased from $185,000 to $190,000. Gifts between U.S. citizen spouses are not subject to any exclusion limits and can therefore be unlimited with no gift tax consequences.

ESTATE AND GIFT TAX EXEMPTION:
The Estate and Gift Tax exemption is $13.99 million per individual for 2025 gifts and deaths, up from $13.61 million in 2024. This increase means that a married couple can shield a total of $27.98 million without having to pay any federal estate or gift tax.

Source: The Tax Foundation

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