Now in 2025, Internal Revenue Service Updated Income Tax Classifications And a higher standard deduction went into effect. Depending on your income level, these changes could increase your paycheck or increase your tax bill next year.
If you fall into a lower tax bracket this year, you'll pay a lower tax rate and could see a small increase in the amount you take home each pay period. In some cases, a higher standard deduction can reduce your tax bill or increase your income.
This story is part of 2025 taxesCNET covers the best tax software, tax tips, and everything else you need to file your return and track your refund.
It's normal for the IRS to change tax laws every year to account for inflation. This helps prevent '.tax creep”, which can push you into a higher tax bracket, even though inflation is eating away at wages.
These new tax changes went into effect on January 1st. Here's everything you need to know about next year's income tax brackets, basic deduction hikes and how tax changes will affect your money.
read more: Will there be more tax cuts next year? Who will benefit from President Trump's tax plan?
Impact of tax law changes on salaries
If the IRS increases your federal income tax rate, you may be in a different tax bracket than you were the previous year, even if your income is the same.
For example, if you earned $48,000 last year, your tax rate would be 22%. However, if income were to remain at the same level throughout 2025, it would drop to the 12% range. That means less federal taxes and less money taken out of your paycheck.
However, if you earn more in 2025 than you did in 2024, the amount of your salary increase will determine where you fall. You may also fall into a lower tax bracket or the same tax bracket. In some cases, tax rates and tax rates may increase.
2025 income tax bracket
Your federal income tax bracket helps you determine how much tax you pay in a given tax year, excluding the standard deduction or itemized tax deductions.
2025 income tax bracket for single filers
| taxable income | federal tax rate |
|---|---|
| Under $11,925 | 10% |
| $11,926 to $48,475 | $1,192.50 plus 12% of income above $11,925 |
| $48,476 – $103,350 | 22% of income above $5,578.50 plus $48,475 |
| $103,351 to $197,300 | $17,651 plus 24% of income above $103,350 |
| $197,301 – $250,525 | 32% of income above $40,199 plus $197,300 |
| $250,526 to $626,350 | 35% of income above $57,231 and $250,525 |
| Over $626,351 | $609,350 $188,769.75 plus 37% of income above $626,350 |
2025 income tax brackets for married filers filing jointly
| taxable income | federal tax rate |
|---|---|
| Under $23,850 | 10% |
| $23,851 – $96,950 | $2,385 plus 12% of income above $23,850 |
| $96,951 to $206,700 | 22% of income above $11,157 plus $96,950 |
| $206,701 to $394,600 | $35,302 + 24% of income above $206,700 |
| $394,601 to $501,050 | 32% of income above $80,398 plus $394,600 |
| $501,051 to $751,600 | 35% of income above $114,462 plus $501,050 |
| Over $751,601 | $202,154.50 plus 37% of income above $751,600 |
2025 income tax classification of household head filer
| taxable income | federal tax rate |
|---|---|
| Under $17,000 | 10% |
| $17,001 to $64,850 | $1,700 plus 12% of income over $17,000 |
| $64,851 to $103,350 | $7,442 + 22% of income above $64,850 |
| $103,351 to $197,300 | 24% of income above $15,912 and $103,350 |
| $197,301 to $250,500 | 32% of income above $38,460 plus $197,300 |
| $250,501 to $626,350 | $55,484 plus 35% of income above $250,500 |
| Over $626,351 | $187,031.50 plus 37% of income above $626,350 |
Basic deduction for 2025
In 2025, the standard deduction for single filers increases to $15,000, an increase of $400 from 2024. For married filers filing jointly, the standard deduction increases to $30,000, an $800 increase from the previous year.
IRS standard deduction
| Application status | 2024 | 2025 |
|---|---|---|
| Single or married, file separately | $14,600 | $15,000 |
| Married person, filing joint return | $29,200 | $30,000 |
| head of household | $21,900 | $22,500 |
Source of all graphs: IRS (PDF).
Most taxpayers who file a simple tax return claim the standard deduction, which reduces their taxable income. If you receive wages solely from your 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 want to claim, itemize your deductions instead.
Other 2025 tax changes that may help
There are other tax changes coming next year that could increase your paycheck even more. When you collect social security, 2.5% cost of living adjustment in 2025. For filers with three or more qualifying children, the Earned Income Tax Credit also increased to $8,046.
Annual deductions for the foreign earned income deduction, inheritance tax deduction deduction, and gift and adoption deduction also increased.
