IRS releases new tax brackets, standard deduction

The Internal Revenue Service on Tuesday released details about the new income tax brackets for 2025.

The IRS also released updated numbers on several other tax markers, including the standard deduction, which rose $400 from last year, up to $15,000.

“For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024,” the IRS said in its announcement. “For heads of households, the standard deduction will be $22,500 for tax year 2024, an increase of $600 from the amount for tax year 2024.”

The new tax brackets, adjusted for inflation, from the IRS announcement are below:

37% for incomes over $626,350 ($751,600 for married couples filing jointly)35% for incomes over $250,525 ($501,050 for married couples filing jointly).32% for incomes over $197,300 ($394,600 for married couples filing jointly).24% for incomes over $103,350 ($206,700 for married couples filing jointly).22% for incomes over $48,475 ($96,950 for married couples filing jointly).12% for incomes over $11,925 ($23,850 for married couples filing jointly).10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly)

The IRS also released new details for earned income tax credits, saying the maximum for those with three or more children has risen to $8,046. The IRS also released new alternative minimum tax exemption figures.

“For tax year 2025, the exemption amount for unmarried individuals increases to $88,100 ($68,650 for married individuals filing separately) and begins to phase out at $626,350,” the IRS said. “For married couples filing jointly, the exemption amount increases to $137,000 and begins to phase out at $1,252,700.”

Tax-free personal exemptions and unlimited itemized deductions remain unchanged due to the Tax Cuts and Jobs Act of 2017.

Untaxed Health Savings Account contributions rose to a limit of $3,300, up $100 from the previous year.

The annual exclusion for a gift, meaning how much money you can give gift to someone without being taxed, rose to $19,000, up $1,000 from the previous year.

“For tax year 2025, the exemption amount for unmarried individuals increases to $88,100 ($68,650 for married individuals filing separately) and begins to phase out at $626,350. For married couples filing jointly, the exemption amount increases to $137,000 and begins to phase out at $1,252,700.