New IRS Tax Brackets for 2025 Key Changes That Could Affect Your Taxes

The Internal Revenue Service (IRS) stated changes to taxes for 2025, such as new tax brackets, amounts for the Earned Income Tax Credit (EITC), and standard deductions. This means that it should be easy to get caught up on time.

The announced rules are for the 2025 tax year, so the results will show up on tax returns for 2026. The next tax season, from January to April 2025, is for the 2024 tax year, and those rules have been in place for a year.

The most important change for the 2025 tax year is that the tax rates will be changed. These changes are made to account for inflation and keep people from having to pay more tax when their wages rise to keep up with inflation but not by a large amount.

What are the new tax rates from the IRS for 2025?

The general system will stay the same. There will still be seven tax brackets, and the top rate will still be 37%. To account for inflation, the remaining tax bands have been changed by 2.8%. This helps some taxpayers because it means they can pay less tax on more of their income. Here are the new tax rates and ranges:

• Tax / Rate, Individual Income Range, Income Range for Joint Filers
• Tax / Rate: 10% | Individual income bracket: Up to $11,925 | Income bracket for joint filers: Up to $23,850
• Tax / Rate: 12% | Individual income range: $11,926 – $48,475 | Joint filer income range: $23,851 – $96,950
• Tax / Rate: 22% | Individual income range: $48,476 – $103,350 | Income range for joint filers: $96,951 – $206,700
• Tax / Rate: 24% | Range of individual income: $103,351 – $197,300 | Range of income for joint filers: $206,701 – $394,600
• Tax / Rate: 32% | Individual income range: $197,301 – $250,525 | Joint filer income range: $394,601 – $501,050
• Tax / Rate: 35% | Range of individual income: $250,526 – $626,350 | Range of income for joint filers: $501,051 – $751,600
• Tax / Rate: 37% | Individual Income Range: More than $626,351 | Income Range for joint filers: Over $751,601
• As we have explained, the 37% tax rate is the only one that remains unchanged as of 2024.

Increase in the standard deduction for the year 2025 

A rise in the standard deduction is another change that has been made. There are two types of deductions: itemized deductions and standard deductions. Both lower the amount of taxed income that people have to pay.

Itemized deductions don’t change because they are filed separately and for a set amount of money that changes each year. The standard deduction, on the other hand, is the same for everyone and should keep up with inflation since it is meant to make filing easier. These are what the new minimum deductions are:

• For single payers, the tax rate will go up by $400 to $15,000.
• Joint filers: their tax bill will go up by $800, to $30,000.
• For heads of household, the pay will go up by $600, to $22,500.
• The Earned Income Tax Credit (EITC) has changed.

People and families with low to middle incomes can get tax breaks through the EITC. Even though families with kids are more likely to get it, you don’t have to have kids to get it. Here are the new amounts:

• Taxpayers who qualify and don’t have any kids: highest credit of $649.
• Taxpayers who qualify and have one child can get a credit of up to $4,328.
• Taxpayers who are eligible and have two children can get a credit of up to $7,152.
• Taxpayers who qualify and have three or more children can get a credit of up to $8,046.