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In October, the Internal Revenue Service announced increases to the federal income tax brackets and standard deduction for 2025. Depending on where your income falls, you could see a slight bump in your paycheck starting in January.
The IRS typically makes tax code changes each year to account for inflation. This also helps prevent “tax bracket creep,” which could push you into a higher tax bracket, despite inflation eating into your wages.
Here’s everything you need to know about next year’s tax brackets and the standard deduction increases.
Read more: Supplemental Security Income: How Much More Money Will You Get With Next Year’s COLA Increase?
How tax code changes affect your paycheck
When the IRS raises federal income tax brackets, you might fall into a different tax bracket than you did the year before — even if your income has stayed the same.
For example, if you made $48,000 this year, you’ll fall into the 22% tax bracket. But if your income remains at the same throughout 2025, you’ll drop down to the 12% bracket. That means you’ll be on the hook for less federal tax next year and will have less money withdrawn from your paycheck.
If you make more in 2025 than you did in 2024, the amount your pay has increased will determine where you fall. You could still fall into a lower tax bracket 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’ll pay in taxes for a given tax year, excluding the standard deduction or any itemized tax deductions.
2025 income tax brackets for single 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 filers who are married, 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 filers
| 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 |
2025 standard deduction
For 2025, the standard tax deduction for single filers has been raised to $15,000, a $400 increase from 2024. For those married and filing jointly, the standard deduction has been raised to $30,000, up $800 from the previous year.
IRS Standard deduction
| Filing 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 claim the standard deduction, which reduces their taxable income. If you receive your wages solely from an employer as a W-2 employee, the standard deduction is usually the best way to maximize your tax refund. If you’re self-employed or have specific deductions you’d like to claim, you’ll itemize your deductions instead.
Other 2025 tax changes that may help you
There are other tax changes happening next year that could put more money in your paycheck. If you collect Social Security, you’ll receive a 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 Foreign Earned Income Exclusion, estate tax credits exclusion, annual exclusion for gifts and adoption credit also increased.
