Taxpayers will get higher standard deductions in 2025, IRS announces

You May Be Interested In:7 Signs It’s Time to Take Your Memory Problems Seriously


NEW YORK — U.S. taxpayers will again see higher standard deductions for 2025, allowing them to shield more of their money from taxation on future returns.

The Internal Revenue Service detailed the increases in its annual inflation adjustments announced Tuesday. For single taxpayers and married individuals filing separately in tax year 2025, the standard deduction is rising to $15,000 — up $400 from 2024.

For couples who file jointly, that standard deduction will be $30,000 for 2025, an $800 jump from the year prior. And heads of households will get a $22,500 standard deduction, up $600 from 2024.

Income thresholds for all seven federal tax bracket levels were also revised upward. The top tax rate, which remains 37%, will cover incomes greater than $626,350 for single taxpayers in tax year 2025, for example — compared to $609,350 in 2024.

The IRS makes such adjustments for each tax year to account for inflation, which has recently been on a downward trend. Last month, inflation in the U.S. dropped to its lowest point in more than three years, marking some encouraging economic news — but Americans are still feeling some key price pressures.

“Core” prices, a gauge of underlying inflation, remained elevated in September, driven up by rising costs for medical care, clothing, auto insurance and airline fares.

While taxpayers will again see higher standard deductions for 2025, the increases announced Tuesday are less than those seen in recent years. In tax adjustments announced last year, for example, the IRS raised single filers’ standard deduction by $750 between the 2023 and 2024 tax years — and by $1,500 and $1,100 for married couples and heads of households, respectively.

share Paylaş facebook pinterest whatsapp x print

Similar Content

What to know about Biden letting Ukraine use long-range U.S. missiles against Russia
What to know about Biden letting Ukraine use long-range U.S. missiles against Russia
3 important facts to know if your credit card debt goes to collections
3 important facts to know if your credit card debt goes to collections
Nature: White-throated bee-eaters
Nature: White-throated bee-eaters
Full Interview: FEMA Administrator Deanne Criswell, January 12
Full Interview: FEMA Administrator Deanne Criswell, January 12
JD Vance is leaving the Senate for the vice presidency. That's set off a scramble for his Ohio seat
JD Vance is leaving the Senate for the vice presidency. That’s set off a scramble for his Ohio seat
What to know about Russia-Ukraine war after approval of American-made weapons for Ukraine
What to know about Russia-Ukraine war after approval of American-made weapons for Ukraine
Vista News | © 2024 | News