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The Internal Revenue Service (IRS) has announced the annual inflation adjustments for more than 60 tax provisions for the tax year 2025, including the tax rate schedules and other tax changes. The adjustments will apply to income tax returns filed in 2026 for income earned in 2025.
The standard deduction will rise to $15,000 for an individual or $30,000 for a married couple, marking the first time these amounts have reached these levels, according to the Washington Post.
The tax brackets for 2025 have also been adjusted. The lowest rate is 10% for incomes of single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly). The other rates are as follows:
- 12% for incomes over $11,600 ($23,200 for married couples filing jointly)
- 22% for incomes over $47,150 ($94,300 for married couples filing jointly)
- 24% for incomes over $100,525 ($201,050 for married couples filing jointly)
- 32% for incomes over $191,950 ($383,900 for married couples filing jointly)
- 35% for incomes over $243,725 ($487,450 for married couples filing jointly)