Now that we’re in 2025, the Internal Revenue Service’s updated income tax brackets and higher standard deductions have gone into effect. Depending on your income level, these changes could put more money into your paycheck or increase your tax return next year.
If you fall into a lower tax bracket this year, you’ll pay a lower rate of tax, which could slightly increase the amount of money you take home each pay period. A higher standard deduction can also help lower your tax bill or increase your income, in some cases.
This story is part of Taxes 2025CNET’s coverage of the best tax software, tax tips, and everything else you need to file your return and track your refund.
It is normal for the IRS to make changes to the tax code each year to account for inflation. This helps prevent “tax bracket creep,” which can push you into a higher tax bracket even as inflation is raising your wages.
These new tax changes were published on January 1st. Here’s everything you need to know about next year’s income tax brackets, the increase in the standard deduction and how the tax changes could affect your money.
Read more: Will we see more tax cuts next year? Who benefits from Trump’s tax plan?
How changes to the tax code affect your salary
When the IRS raises your federal income tax brackets, you may 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 last year, you fell into the 22% tax bracket. But if your income stays the same throughout 2025, you’ll drop into the 12% bracket. That means you’ll be on the hook for less federal taxes and have less money taken out of your paycheck.
If you earn more in 2025 than in 2024, however, the amount your salary has increased will determine where you fall. You may 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 earnings 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 deduction for single filers has increased to $15,000, an increase of $400 from 2024. For those married filing jointly, the standard deduction has increased to $30,000, an increase of $800 from 2025. passed.
The standard IRS deduction
| File status | 2024 | 2025 |
|---|---|---|
| Single or married, filing separately | 14600 dollars | $15,000 |
| Married, filing jointly | 29200 dollars | 30 thousand dollars |
| Head of Household | 21900 dollars | 22500 dollars |
Source for all graphics: IRS (PDF).
Most taxpayers with simple tax returns claim the standard deduction, which reduces their taxable income. If you only receive your wages from one 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, you’ll itemize your deductions instead.
Other 2025 tax changes that may help
There are other tax changes coming up next year that could put more money into your paycheck. If you collect Social Security, you will receive one 2.5% cost of living adjustment in 2025. The Earned Income Tax Credit also increased to $8,046 for applicants with three or more qualifying children.
The foreign earned income exclusion, the estate tax credit exclusion, the annual gift exclusion and the adoption credit have also been increased.
