Tax season 2025: what are the federal tax brackets for next year?
The IRS has released the adjusted tax brackets for 2025. Find out which one you are in based on your income and how much tax you’ll have to pay.
The IRS has released the adjusted tax brackets for 2025. These will apply to income tax retunrs filed in 2026 but can help you plan ahead if you are expceting changes in your financial situation or filing status next year.
Every year the Internal Revenue Service (IRS) adjusts the earnings amounts for each of the tax brackets to account for inflation during the year.
The seven brackets remain the same next year 10%, 12%, 22%, 24%, 32%, 35% and 37% which were set after the 2017 Tax Cuts and Jobs Act. These will be in place through the 2025 fiscal year, after which time, with no Congressional action, the tax rate will increase for all except the lowest tax brackets.
The annual adjustment is designed to avoid “bracket creep” when people are pushed into a higher income bracket or inflation reduces the value of other deductions or credits. So, for example instead of 10% being applied to the first $11,600 of income as in 2024, it will now be applied to the first $11,925 of income earned in 2025 for a taxpayer filing individually.
| Tax rate | Single filers & Married Filing Seperately | Married filing jointly | Head of household |
|---|---|---|---|
| 37% | for incomes over $626,350 | for incomes over $751,600 | for incomes over $626,350 |
| 35% | for incomes over $250,525 to $626,350 | for incomes over $501,050 to $751,600 | for incomes over $250,500 to $626,350 |
| 32% | for incomes over $197,300 to $250,525 | for incomes over $394,600 to $501,050 | for incomes over $197,300 to $250,500 |
| 24% | for incomes over $103,350 to $197,300 | for incomes over $206,700 to $394,600 | for incomes over $103,350 to $197,300 |
| 22% | for incomes over $48,475 to $103,350 | for incomes over $96,950 to $206,700 | for incomes over $64,850 to $103,350 |
| 12% | for incomes over $11,925 to $48,475 | for incomes over $23,850 to $96,950 | for incomes over $17,000 to $64,850 |
| 10% | incomes of $11,925 or less | for incomes of $23,850 or less | for incomes of $17,000 or less |
To help taxpayers determine which filing status applies to them the IRS has an online tool “What Is My Filing Status?”
The tax brackets are progressive, so if you file as a single filer and have a taxable income of $50,000, you don’t pay 22 percent on the whole of your taxable income. You would pay 10 percent on the first $11,925 ($1,192.50), 12 percent on the income between $11,925 and $48,475 ($4,386), and then 22 percent on the remaining $1,525 ($335.50) for a total of $5,914.00 as opposed to $11,000. That amount is $139.00 less than you would be taxed for the same income in 2024.