The Internal Revenue Service (IRS) released new tax bracket information for 2025. Most tax thresholds increased by 2.8% compared to 2024. The report, released ahead of the election, claims these changes will prevent “bracket creep” where inflation propels taxpayers into higher brackets. However, the tax breaks imposed under former President Donald Trump come to an end after 2025 if no action is taken and this could be the lowest tax season for many years to come.
The bottom 10% level now applies to those earning up to $11,925 for single filers and $23,850 for married couples filing jointly. The top 37% rate covers incomes over $626,350 for single filers and $751,600 for married couples filing jointly. The standard deduction has risen to $15,000 for single filers, up from $14,600 in 2024, while married couples can claim $30,000, up from $29,200.
The 2.8% modification for 2025 is less than the inflation adjustments made in recent years when we saw an adjustment of 5.4% in 2024 and 7.1% for 2023.
Now, the Tax Cuts and Jobs Act (TCJA) of 2017 enacted by Trump will expire next year if Congress fails to take action. If this legislation expires, we will revert to pre-2017 tax levels. The media highlights that the dreaded rich would be forced back into a 39.6% tax bracket compared to the 37% they now pay, but everyone could see a sharp rise in the money they owe Uncle Sam.
The state and local tax (SALT) deduction would also expire. This program currently places a $10,000 cap on state and local tax deductions. State and local governments would have the ability to raise taxes if this is repealed. Some agencies estimate reversing this measure would up federal revenues by $1.1 trillion over the next decade – they’re eager to destroy this provision.
A reversal of TCJA would bring standard deductions down to $16,525 for joint filers and the personal exemption rate would be $5,272. Small businesses were awarded a 0% deduction under TCJA for S-corporations, sole proprietorships, and partnerships. Twenty percent is significant for small businesses that are largely struggling to stay afloat in this economy.
Trump’s tax plan actually increased the child tax credit, doubling it from $1,000 to $2,000 not adjusted for inflation. Brookings Institute believes that repealing this measure would make the real value of this credit 25% lower than 2017 due to inflation.
Estate tax exemptions doubled under Trump’s tax plan. If this measure dies the exemption will be about $14.3 million for married couples and $7 million for individuals.
The government will become more totalitarian as it sees costs rise significantly in the face of war. Per usual, the people of the United States will be expected to foot the bill. The last revolution began through taxation. It is a matter of time before we see how the next one begins.
Marginal tax brackets for tax year 2025
Single filers
| Taxable income | Tax rate |
| $11,925 or less | 10% |
| $11,926 to $48,475 | $1,192.50 Plus 12% of amount over $11,925 |
| $48,476 to $103,350 | $5,578.50 Plus 22% of amount over $48,475 |
| $103,351 to $197,300 | $17,651 Plus 24% of amount over $103,350 |
| $197,301 to $250,525 | $40,199 Plus 32% of amount over $197,300 |
| $250,526 to $626,350 | $57,231 Plus 35% of amount over $250,525 |
| $626,351 and above | $188,769.75 Plus 37% of amount over $626,350 |
Source: IRS
Marginal tax brackets for tax year 2025
Married filing jointly
The table shows the income brackets for married couples filing jointly for the 2025 tax year.
| Taxable income | Tax rate |
| $23,850 or less | 10% |
| $394,601 to $501,050 | $80,398 Plus 32% of amount over $394,600 |
| $206,701 to $394,600 | $35,302 Plus 24% of amount over $206,700 |
| $751,601 and above | $202,154.50 Plus 37% of amount over $751,600 |
| $23,851 to $96,950 | $2,385 Plus 12% of amount over $23,850 |
| $501,051 to $751,600 | $114,462 Plus 35% of amount over $501,050 |
| $96,951 to $206,700 | $11,157 Plus 22% of amount over $96,950 |
