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With the 2024 tax filing season around the corner, practitioners should also keep in mind 2025 tax numbers and rates that will impact their clients for the coming year. The IRS issued these numbers in late October through Revenue Procedure 2024-40, of which the highlights are summarized below.
Individual Filers
The 2025 tax brackets for individual filers are as follows:
|
Tax Rate |
Single |
Married Filing Joint |
Married Filing Separate |
Head of Household |
|
10% |
$0 – $11,925 |
$0 – $23,850 |
$0 – $11,925 |
$0 – $17,000 |
|
12% |
$11,926 – $48,475 |
$23,851 – $96,950 |
$11,926 – $48,475 |
$17,001 – $64,850 |
|
22% |
$48,476 – $103,350 |
$96,951 – $206,700 |
$48,476 – $103,350 |
$64,851 – $103,350 |
|
24% |
$103,351 – $197,300 |
$206,701 – $394,600 |
$103,351 – $197,300 |
$103,351 – $197,300 |
|
32% |
$197,301 – $250,525 |
$394,601 – $501,050 |
$197,301 – $250,525 |
$197,301 – $250,500 |
|
35% |
$250,526 – $626,350 |
$501,051 – $751,600 |
$250,526 – $375,800 |
$250,501 – $626,350 |
|
37% |
Over $626,350 |
Over $751,600 |
Over $375,800 |
Over $626,350 |
Standard Deduction
The 2025 standard deduction across filing statuses has also been raised from the 2024 deduction.
|
Filing Status |
2025 Standard Deduction |
2024 Standard Deduction |
|
Single |
$15,000 |
$14,600 |
|
Married Filing Joint |
$30,000 |
$29,200 |
|
Married Filing Separate |
$15,000 |
$14,600 |
|
Head of Household |
$22,500 |
$21,900 |
Earned Income Credit
The 2025 earned income credit has been adjusted for inflation as well.
|
Item |
1 child |
2 children |
3 or more children |
No children |
|
Earned Income Amount |
$12,730 |
$17,880 |
$17,880 |
$8,490 |
|
Maximum Amount of Credit |
$4,328 |
$7,152 |
$8,046 |
$649 |
|
Threshold Phaseout Amount (Married Filing Jointly) |
$30,470 |
$30,470 |
$30,470 |
$17,730 |
|
Completed Phaseout Amount (Married Filing Jointly) |
$57,554 |
$64,430 |
$68,675 |
$26,214 |
|
Threshold Phaseout Amount (All other filing statuses) |
$23,350 |
$23,350 |
$23,350 |
$10,620 |
|
Completed Phaseout Amount (All other filing statuses) |
$50,434 |
$57,310 |
$61,555 |
$19,104 |
In the realm of the estate and gift tax, the basic exclusion for decedents in 2025 is $13,990,000. The annual gift tax exclusion for individuals in 2025 is $19,000.
While the 2024 tax filing season is shortly upon us, practitioners should be mindful of these updated and changed rates and thresholds to help navigate their clients in tax planning for the current year.
By Chris Korban, CPA
Tax Materials Specialist, U of I Tax School
Disclaimer: The information referenced in Tax School’s blog is accurate at the date of publication. You may contact taxschool@illinois.edu if you have more up-to-date, supported information and we will create an addendum.
University of Illinois Tax School is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information. This blog and the information contained herein does not constitute tax client advice.
