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Income Tax Brackets and Rates
In 2025, the income limits for all tax brackets and all filers will be
adjusted for inflation
and will be as follows (Tables 1). The top
marginal income tax rate of 37 percent
will hit taxpayers with taxable
income of $609,351
and higher for single filers
and $731,201
and higher
for married couples filing jointly.
|
2025 |
Table 1. Tax Brackets and Rates |
|
Rate |
For Unmarried Individuals, Taxable Income Over |
For Married Individuals Filing Joint Returns, Taxable Income
Over |
For Heads of Households, Taxable Income Over |
|
10% |
$0 |
$0 |
$0 |
|
12% |
$11,601 |
$23,201 |
$16,551 |
|
22% |
$47,151 |
$94,301 |
$63,101 |
|
24% |
$100,526 |
$201,051 |
$100,501 |
|
32% |
$191,951 |
$383,901 |
$191,951 |
|
35% |
$243,726 |
$487,451 |
$243,701 |
|
37% |
$609,351 |
$731,201 |
$609,351 |
Table 2. 2025 Standard Deduction and Personal Exemption
|
Filing Status |
Deduction Amount |
|
Single |
$15,750 |
|
Head of Household |
$23.625 |
|
Married Filing Jointly |
$31,500 |
Table 3. 2023 Earned Income Tax Credit Parameters
|
Filing Status |
|
No Children |
One Child |
Two Children |
Three or
More Children |
|
Single
Or
Head of Household |
|
|
|
|
|
|
Maximum Credit |
$649 |
$4328 |
$7,152 |
$8,046 |
|
Phase-out Ends
(Credit Equals Zero) |
$19,104 |
$50,434 |
$57,310 |
$61,555 |
|
Married Filing Jointly |
|
|
|
|
|
|
Maximum Credit |
$649 |
$4328 |
$7,152 |
$8,046 |
|
Phase-out Ends
(Credit Equals Zero) |
$26,214 |
$57,554 |
$64,430 |
$68,675 |
|
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If
your gross income was
$5,200
or more, you usually can’t be claimed as a dependent unless you are a
qualifying child.
Retirement
Contributions
|
TYPE |
2025 |
|
Traditional IRA
or Roth IRA |
$7,000 per
individual |
|
– over 50
“catch up” |
An additional
$1,000 |
|
401K Limits |
$23,500 |
|
401K Limits over 50 |
$31,000 |
|
401K Limits over 60-63 |
$44,750 |
Capital Gains
Capital gains rates are lower than a taxpayer’s ordinary income
rate.
But they depend on the taxpayer’s taxable income and filing status.
The maximum adjusted capital gains rates apply for both the regular
income tax and the alternative minimum tax.
Your capital gains rate for the 2025 tax
year:
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Married, filing
separately
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The applicable capital gains rate is set at 20% for any income amounts
above these ceilings. |