In 2025, the IRS will implement new tax brackets, offering potential tax relief for many Americans. This shift could mean lower taxes for those who earn more, depending on their income level.
New IRS Tax Brackets for 2025
This Article Includes
Here’s a quick look at the updated tax brackets for 2025:
- 10% Bracket: Single up to $11,600; Married Filing Jointly up to $23,200; Head of Household up to $16,550.
- 12% Bracket: Single $11,601 to $47,150; Married Filing Jointly $23,201 to $94,300; Head of Household $16,551 to $63,100.
- 22% Bracket: Single $47,151 to $100,525; Married Filing Jointly $94,301 to $201,050; Head of Household $63,101 to $100,500.
- 24% Bracket: Single $100,526 to $191,950; Married Filing Jointly $201,051 to $383,900; Head of Household $100,501 to $191,950.
- 32% Bracket: Single $191,951 to $243,725; Married Filing Jointly $383,901 to $487,450; Head of Household $191,951 to $243,700.
- 35% Bracket: Single $243,726 to $609,350; Married Filing Jointly $487,451 to $731,200; Head of Household $234,701 to $609,350.
- 37% Bracket: Single over $609,350; Married Filing Jointly over $731,200; Head of Household over $609,350.
Comparison with 2024 Tax Brackets
The 2025 tax brackets show a significant increase compared to 2024, allowing higher income thresholds before reaching a higher tax rate. For instance, the 10% bracket increases from $11,000 to $11,600 for singles, and the 37% bracket starts at $609,350 compared to $578,125 in 2024.
Planning Ahead: What You Need to Do
To take advantage of these changes, consider your 2024 income and tax planning. If you’ve requested an extension for your 2024 tax return, ensure all documents are submitted by October 15, 2024. Otherwise, the original deadline was April 15, 2024.
Conclusion
The 2025 tax reform provides an opportunity for many Americans to benefit from lower tax rates. Stay informed and plan accordingly to maximize your tax savings.
Source – tododisca