Tax bracket inflation adjustments for the past two years rose by 5.4% in 2024 and a whopping 7.1% in 2023. This coming year they will rise 2.8%.
Our tax specialists have reviewed the tax bracket thresholds from 2024 and 2025.
Comparison of 2024 tax brackets to 2025 brackets
|
Individual Income Tax brackets (Married filing jointly) |
||
|
|
2024 |
2025 |
|
10% |
$0 to $23,200 |
$0 to $23,850 |
|
12% |
$23,201 to $94,300 |
$23,851 to $96,950 |
|
22% |
$94,301 to $201,050 |
$96,951 to $206,700 |
|
24% |
$201,051 to $383,900 |
$206,701 to $394,600 |
|
32% |
$383,901 to $487,450 |
$394,601 to $501,050 |
|
35% |
$487,451 to $731,200 |
$501,051 to $751,600 |
|
37% |
$731,201 and above |
$751,601 and above |
|
Individual Income Tax brackets (Single filers) |
||
|
|
2024 |
2025 |
|
10% |
$0 to $11,600 |
$0 to $11,925 |
|
12% |
$11,601 to $47,150 |
$11,926 to $48,475 |
|
22% |
$47,151 to $100,525 |
$48,476 to $103,350 |
|
24% |
$100,526 to $191,950 |
$103,351 to $197,300 |
|
32% |
$191,951 to $243,725 |
$197,301 to $250,525 |
|
35% |
$243,726 to $609,350 |
$250,526 to $623,350 |
|
37% |
$609,351 and above |
$623,351 and above |
|
Standard Deduction |
||
|
Filing status |
2024 |
2025 |
|
Married Filing Jointly/Surviving Spouses |
$29,200 |
$30,000 (+$800) |
|
Heads of Household |
$21,900 |
$22,500 (+$600) |
|
All Other Taxpayers |
$14,600 |
$15,000 (+$400) |
|
Alternative Minimum Tax |
||
|
Filing status |
2024 |
2025 |
|
Married Filing Jointly/Surviving Spouses |
$133,300 |
$137,000 (+$3,700) |
|
Unmarried Individuals |
$85,700 |
$88,100 (+$2,400) |
|
Married Filing Separately |
$66,650 |
$68,650 (+$2,000) |
|
Estates and Trusts |
$29,900 |
|
Plan for the inflation-adjusted tax rates
Knowing that inflation will have an impact on the 2025 filing season, business owners and individuals will need to keep these higher thresholds in mind when planning for 2025. Estate and gift tax planning is one area that benefits from inflation-adjusted rates.
The annual exclusion for gifts has gone from $18,000 in 2024 to $19,000 in 2025, allowing for larger gifts without tax implications. And for any decedent dying in the calendar year, the basic exclusion amount is $13,990,000. Keep in mind that the favorable estate and gift tax exemption will expire in 2025 and revert to pre–Tax Cuts and Jobs Act levels, which will be much lower than current levels.
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