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Your payday could get a boost this year now that it’s… Updated income tax brackets from the Internal Revenue Service Higher standard deductibles have taken effect. Depending on your income level, this means your take-home pay may increase this year or your tax bill may decrease next year.
Even if your salary doesn’t change, you may have fallen to a lower tax bracket in 2025, reducing your tax rate. So you may see a slight increase in the amount of money you take home each pay period. A higher standard deduction can also help lower your tax bill or increase your income, in some cases.
It’s normal for the IRS to make changes to the tax law every year Economic inflation. This helps preventTax bracket creep“- That’s when inflation pushes you into a higher tax bracket Without a real increase in income.
These new tax changes went live on January 1st. Here’s everything you need to know about this year’s income tax brackets, increasing the standard deduction and how tax changes could affect your finances.
Read more: Will we see more tax breaks next year? Who benefits from Trump’s tax plan?
How tax law changes affect your salary
When the IRS raises your federal income tax brackets, you may fall into a different tax bracket than you were in the previous year — even if your income stays the same.
For example, if you made $48,000 last year, you fell into the 22% tax bracket. But if your income stays at the same level throughout 2025, it will drop to the 12% bracket. This means you’ll be on the hook for less federal taxes and will have less money taken from your paycheck.
If you earn more in 2025 than you did in 2024, the amount your salary increased will determine where you fall. You could still fall into a lower or the same tax bracket. In some cases, your tax bracket and tax rate may increase.
2025 income tax brackets
Your federal income tax bracket helps determine how much you will pay in taxes for a given tax year, excluding the standard deduction or any Itemized tax deductions.
2025 Income Tax Brackets for Sole Filers
| Taxable income | Federal tax rate |
|---|---|
| $11,925 or less | 10% |
| $11,926 to $48,475 | $1,192.50 plus 12% of income over $11,925 |
| $48,476 to $103,350 | $5,578.50 plus 22% of income over $48,475 |
| $103,351 to $197,300 | $17,651 plus 24% of income over $103,350 |
| $197,301 to $250,525 | $40,199 plus 32% of income over $197,300 |
| $250,526 to $626,350 | $57,231 plus 35% of income over $250,525 |
| $626,351 or more | $609,350 $188,769.75 plus 37% of income over $626,350 |
2025 income tax brackets for married filers filing jointly
| Taxable income | Federal tax rate |
|---|---|
| $23,850 or less | 10% |
| $23,851 to $96,950 | $2,385 plus 12% of income over $23,850 |
| $96,951 to $206,700 | $11,157 plus 22% of income over $96,950 |
| $206,701 to $394,600 | $35,302 plus 24% of income over $206,700 |
| $394,601 to $501,050 | $80,398 plus 32% of income over $394,600 |
| $501,051 to $751,600 | $114,462 plus 35% of income over $501,050 |
| $751,601 or more | $202,154.50 plus 37% of income over $751,600 |
2025 Income Tax Brackets for Head of Household
| Taxable income | Federal tax rate |
|---|---|
| $17,000 or less | 10% |
| $17,001 to $64,850 | $1,700 plus 12% of income over $17,000 |
| $64,851 to $103,350 | $7,442 plus 22% of income over $64,850 |
| $103,351 to $197,300 | $15,912 plus 24% of income over $103,350 |
| $197,301 to $250,500 | $38,460 plus 32% of income over $197,300 |
| $250,501 to $626,350 | $55,484 plus 35% of income over $250,500 |
| $626,351 or more | $187,031.50 plus 37% of income over $626,350 |
Standard deduction 2025
For 2025, the standard tax deduction for single filers is raised to $15,000, an increase of $400 from 2024. For married couples filing jointly, the standard deduction is raised to $30,000, an increase of $800 from the previous year.
Standard IRS deduction
| Deposit status | 2024 | 2025 |
|---|---|---|
| Single or married, filing separately | $14,600 | $15,000 |
| Married, filing jointly | $29,200 | $30,000 |
| Head of household | $21,900 | $22,500 |
Source for all charts: IRS (PDF).
Most taxpayers with Simple tax returns Claiming the standard deduction, which reduces their taxable income. If you only receive your wages from your employer as a W-2 employee, the standard deduction is usually the best way to maximize your tax refund. If you are self employed Or you have specific deductions you’d like to claim, it will itemize your deductions instead.
Other 2025 tax changes that may help you
There are other tax changes coming next year that could add more money to your paycheck. If you collect Social Security, you will receive… 2.5% cost of living adjustment in 2025. The Earned Income Tax Credit also increased to $8,046 for filers with three or more qualifying children.
The exclusion of foreign earned income, the exclusion of estate tax credits, the annual gift exclusion and the adoption credit have also increased.
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