22 October 2024, IRS has officially posted the updated federal income tax brackets applicable to the 2025 tax year. These adjusted for inflation and other economic factors. Their main objective in this regard is to extend relief to the taxpayer from “bracket creep,” where inflation pushes the individuals into higher brackets without any increase in real income.

New 2025 Federal Income Tax Brackets
The IRS indexes tax brackets to inflation on a yearly basis. Below are the updated tax brackets for single filers and married couples filing jointly in 2025:

Single Filers
10%: Up to $12,500
12%: $12,501 – $51,000
22%: $51,001 – $102,000
24%: $102,001 – $185,500
32%: $185,501 – $364,000
35%: $364,001 – $452,500
37%: Over $452,500
Married Filing Jointly
10%: Up to $25,000
12%: $25,001 – $102,000
22%: $102,001 – $204,000
24%: $204,001 – $371,000
32%: $371,001 – $728,000
35%: $728,001 – $905,000
37%: Over $905,000
Standard Deduction Increases for 2025
Along with the bracket changes, the standard deduction will also increase to:

Single filers: $14,400
Married filing jointly: $28,800
This further works to decrease the taxable income and continues to protect the taxpayer against inflationary pressures.

What These Changes Mean for Taxpayers
These changes mean many taxpayers will be able to either stay in lower brackets or experience smaller tax liabilities. People with incomes that rose only slightly, perhaps due to inflation, might avoid moving into a higher bracket and reduce the total amount of taxes owed in the process.

When Will These Changes Go Into Effect?
It means the new brackets would start with the earnings of 2025 and also would apply to tax returns which are to be filed in 2026. According to the IRS, this new bracket may be referred to by taxpayers to ensure they have proper withholding amounts and plan for 2023 accordingly.