Let’s get everything up to speed for the upcoming year.
The IRS adjusts the tax brackets every year to ensure that people aren’t moved into a higher tax bracket just because prices have gone up, not because they’ve actually earned more money. The tax brackets, which include seven levels with corresponding tax rates: 10, 12, 22, 24, 32, 35 and 37 percent, won’t be changing in 2025.
Your tax payment is based on how much you earn and your marital status, like being single or married. Unlike a flat rate, the federal government taxes you on different parts of your income at varying rates, with different rates applying to different amounts of earnings.
Tax Changes for 2025
For the period from January 1 to December 31, 2025, the following rates will apply:
If you made about $50,000 in taxable income and filed as a single person in 2024, the tax system would require you to pay 10 percent in taxes on the first $11,600 you earned. For the next chunk of income, between $11,601 and $47,150, the tax rate would be 12 percent. Any amount above $47,150 would be taxed at a 22 percent rate. In this scenario, your total tax bill would be roughly $6,053, but this calculation doesn’t account for any additional deductions you might be eligible for.
Standard Deductions
For the year 2025, singles and married people filing separately will see an increase in their standard deduction – the portion of income that isn’t taxable – to $14,600, a $750 increase from 2023.
Married couples who file tax returns jointly will receive a higher standard deduction, now at $29,200, a $1,500 increase from the previous year. The standard deduction for single people who head households will be $22,500 in 2025, a $600 increase after inflation.
Other changes
- For married couples filing separately, the exemption amount is $133,300, but it begins to phase out at an income level of $626,350. Filing jointly, married couples enjoy a higher exemption amount of $137,000, starting to phase out at $1,252,700.
- For eligible taxpayers with three or more dependents, the maximum Earned Income Tax Credit (EITC) for the 2024 tax year is $7,830.
- This will cost $126,500, up from its previous amount of $120,000 in the 2023 tax year.
No changes
As a result of the 2017 Tax Cuts and Jobs Act, there will be no adjustments to personal exemptions or itemized deductions. Personal exemptions will continue to be zero, and there is no ceiling on the amount of itemized deductions.
To find out about all the tax changes happening in 2025, visit the IRS website for the latest details.
Tax Filing Deadline Reminders for 2025:
**Important Deadlines:**
* Monday, April 15, 2025: Extended Tax Filing Deadline
* Wednesday, April 15, 2025: Payment Deadline for Tax Returns without Extensions
**Key Filing Dates:**
1. IRS Opens for Tax Filing: January 28, 2025
2. Individual Tax Filing Deadline: Monday, April 15, 2025 (without extensions)
3. Postmark Date for Mailed Tax Returns: April 15, 2025
4. IRS Filing Address: See IRS.gov for addresses or IRS Form 8822 to change address
- Final quarterly tax payments for 2024 are due, covering income earned between September 1st and December 31st of this year. This deadline applies to individuals who are self-employed or don’t have taxes withheld automatically.
- The Internal Revenue Service is now accepting tax returns for the year 2024.
- The first estimated tax payment for the year 2025 is now due, covering the taxes on income earned between January 1 and March 31 of this year.
- The upcoming deadlines for Maine and Massachusetts to file their estimated payments for 2025 are approaching.
- The second estimated tax payment for the year 2025 is due, which pertains to earnings from April 1 through May 31.
- The third estimated tax payment for the 2025 tax year is due and applies to income earned between June 1 and August 31.
- Today is the last day to submit your 2024 tax return, assuming you’ve received permission to delay filing until this point by filing for a six-month extension.
2026
Here are the new tax adjustments announced by the IRS in October for the 2025 tax year, which takes effect on January 1, 2026:
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