The Internal Revenue Service (IRS) makes yearly adjustments on several tax provisions to mitigate the effect of inflation. Just recently, October 22, 2024, the IRS released the yearly inflation adjustments under Revenue Procedure 2024-40. Listed below are some of its highlights.
Year 2025 Income Tax Table
Below are the updated income tax margins for the year 2025 (for 2026 filing):
| Tax Rate | For Dollar ($) Taxable Income Over | |||
| Married Filing Jointly / Surviving Spouses | Married Filing Separately | Head of Households | Single Filers | |
| 12% | 23,850 | 11,925 | 17,000 | 11,925 |
| 22% | 96,950 | 48,475 | 64,850 | 48,475 |
| 24% | 206,700 | 103,350 | 103,350 | 103,350 |
| 32% | 394,600 | 197,300 | 197,300 | 197,300 |
| 35% | 501,050 | 250,525 | 250,500 | 250,525 |
| 37% | 751,600 | 375,800 | 626,350 | 626,350 |
Note that a 10% tax rate shall be applied to income earned below the dollar margin for the 12% bracket.
Standard Deduction
The amount of standard deduction depends on your filing status, age, if you’re blind, or if someone can claim you as their dependent.
The table below shows the standard deduction based on your filing status for the tax year 2025:
| Filing Status | Standard Deduction |
| Married Filing Jointly / Surviving Spouses | $30,000 |
| Married Filing Separately | $15,000 |
| Head of Households | $22,500 |
| Single Filers | $15,000 |
Capital Gains Tax
The updated margins for long-term capital gains for the tax year 2025 are shown below.
| Filing Status | 0% | 15% | 20% |
| Married Filing Jointly / Surviving Spouses | $0 to $96,700 | $96,701 to $600,050 | Over $600,050 |
| Married Filing Separately | $0 to $48,350 | $48,351 to $300,000 | Over $300,000 |
| Head of Households | $0 to $64,750 | $64,751 to $566,700 | Over $566,700 |
| Single Filers | $0 to $48,350 | $48,351 to $533,400 | Over $533,400 |
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