IRS announces new federal income tax brackets for 2025

• The IRS has unveiled higher federal tax brackets for 2025 to adjust for inflation.
• The standard deduction will increase to $30,000 for married couples filing together and $15,000 for single taxpayers.
• There are also changes to the long-term capital gains brackets, estate tax exemption, child tax credit eligibility and more.

The IRS has announced new?federal income tax brackets?and standard deductions for 2025.

In its?announcement?Tuesday, the agency raised the income thresholds for each?bracket, which applies to tax year 2025 for returns filed in 2026. The top rate of 37% applies to individuals with?taxable income?above $626,350 and married couples filing jointly earning $751,600 or more for 2025.

The IRS also boosted figures for dozens of other provisions, including?long-term capital gains brackets,?estate and gift tax exemption?and eligibility for the?earned income tax credit, among others.

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