The IRS recently published the annual inflation updates for 2025. If you have questions about a particular amount that I do not mention here, you can likely find it in the official IRS announcements:
- Rev. Proc. 2024-40 contains most inflation adjustment figures,
- Notice 2024-80 contains figures relating to retirement accounts, and
- Rev. Proc 2024-25 contains figures relating to health savings accounts (HSAs).
Single 2025 Tax Brackets
| Taxable Income |
Tax Bracket: |
| $0-$11,925 | 10% |
| $11,925-$48,475 | 12% |
| $48,475-$103,350 | 22% |
| $103,350-$197,300 | 24% |
| $197,300-$250,525 | 32% |
| $250,525-$626,350 | 35% |
| $626,350+ | 37% |
Married Filing Jointly 2025 Tax Brackets
| Taxable Income |
Tax Bracket: |
| $0-$23,850 | 10% |
| $23,850-$96,950 | 12% |
| $96,950-$206,700 | 22% |
| $206,700-$394,600 | 24% |
| $394,600-$501,050 | 32% |
| $501,050-$751,600 | 35% |
| $751,600+ | 37% |
Head of Household 2025 Tax Brackets
| Taxable Income |
Tax Bracket: |
| $0-$17,000 | 10% |
| $17,000-$64,850 | 12% |
| $64,850-$103,350 | 22% |
| $103,350-$197,300 | 24% |
| $197,300-$250,500 | 32% |
| $250,500-$626,350 | 35% |
| $626,350+ | 37% |
Married Filing Separately 2025 Tax Brackets
| Taxable Income |
Marginal Tax Rate: |
| $0-$11,925 | 10% |
| $11,925-$48,475 | 12% |
| $48,475-$103,350 | 22% |
| $103,350-$197,300 | 24% |
| $197,300-$250,525 | 32% |
| $250,525-$375,800 | 35% |
| $375,800+ | 37% |
Standard Deduction Amounts
The 2025 standard deduction amounts are as follows:
- Single or married filing separately: $15,000
- Married filing jointly: $30,000
- Head of household: $22,500
The additional standard deduction for people who have reached age 65 (or who are blind) is $1,600 for each married taxpayer or $2,000 for unmarried taxpayers.
IRA Contribution Limits
The contribution limit for Roth IRA and traditional IRA accounts remains at $7,000.
The catch-up contribution limit for people age 50 remains at $1,000.
401(k), 403(b), 457(b) Contribution Limits
The salary deferral limit for 401(k) and other similar plans is increased to $23,500.
The catch-up contribution limit for 401(k) and other similar plans for people age 50 and over remains at $7,500. For people who turn 60, 61, 62, or 63 in 2025, the catch-up contribution limit is $11,250.
The maximum possible contribution for defined contribution plans (e.g., for a self-employed person with a sufficiently high income contributing to a solo 401(k)) is increased to $70,000.
Health Savings Account Contribution Limits
For 2025, the maximum HSA contribution for somebody with self-only coverage under a high deductible health plan is $4,300. The limit for somebody with family coverage under such a plan is $8,550.
The HSA catch-up contribution limit for people age 55 and over is not inflation adjusted, so it remains at $1,000.
Qualified Charitable Distributions
For 2025, the limit for qualified charitable distributions (QCDs) for people age 70.5 and up is increased to $108,000 (per spouse, if married).
Capital Gains and Qualified Dividends
For 2025, long-term capital gains and qualified dividends face the following tax rates:
- 0% tax rate if they fall below $96,700 of taxable income if married filing jointly, $64,750 if head of household, or $48,350 if filing as single or married filing separately.
- 15% tax rate if they fall above the 0% threshold but below $600,050 if married filing jointly, $566,700 if head of household, $533,400 if single, or $300,000 if married filing separately.
- 20% tax rate if they fall above the 15% threshold.
Alternative Minimum Tax (AMT)
The AMT exemption amount is increased to:
- $88,100 for single people and people filing as head of household,
- $137,000 for married people filing jointly, and
- $68,500 for married people filing separately.
Annual Gift Tax Exclusion
For 2025 the annual exclusion for gifts will be $19,000.
Estate Tax
The estate tax exclusion is increased to $13,990,000 per decedent.
Pass-Through Business Income
With respect to the 20% deduction for qualified pass-through income, for 2025, the threshold amount at which the “specified service trade or business” phaseout and the wage (or wage+property) limitations begin to kick in will be $394,600 for married taxpayers filing jointly and $197,300 for single taxpayers, people filing as head of household, and for married people filing separately.
