2025 Tax Brackets, Standard Deduction, and Other Changes — Oblivious Investor

The IRS recently published the annual inflation updates for 2025. If you have questions about a particular amount that I do not mention here, you can likely find it in the official IRS announcements:

Single 2025 Tax Brackets

Taxable Income	Tax Bracket:
$0-$11,925	10%
$11,925-$48,475	12%
$48,475-$103,350	22%
$103,350-$197,300	24%
$197,300-$250,525	32%
$250,525-$626,350	35%
$626,350+	37%

 

Married Filing Jointly 2025 Tax Brackets

Taxable Income	Tax Bracket:
$0-$23,850	10%
$23,850-$96,950	12%
$96,950-$206,700	22%
$206,700-$394,600	24%
$394,600-$501,050	32%
$501,050-$751,600	35%
$751,600+	37%

 

Head of Household 2025 Tax Brackets

Taxable Income	Tax Bracket:
$0-$17,000	10%
$17,000-$64,850	12%
$64,850-$103,350	22%
$103,350-$197,300	24%
$197,300-$250,500	32%
$250,500-$626,350	35%
$626,350+	37%

 

Married Filing Separately 2025 Tax Brackets

Taxable Income	Marginal Tax Rate:
$0-$11,925	10%
$11,925-$48,475	12%
$48,475-$103,350	22%
$103,350-$197,300	24%
$197,300-$250,525	32%
$250,525-$375,800	35%
$375,800+	37%

 

Standard Deduction Amounts

The 2025 standard deduction amounts are as follows:

• Single or married filing separately: $15,000
• Married filing jointly: $30,000
• Head of household: $22,500

The additional standard deduction for people who have reached age 65 (or who are blind) is $1,600 for each married taxpayer or $2,000 for unmarried taxpayers.

IRA Contribution Limits

The contribution limit for Roth IRA and traditional IRA accounts remains at $7,000.

The catch-up contribution limit for people age 50 remains at $1,000.

401(k), 403(b), 457(b) Contribution Limits

The salary deferral limit for 401(k) and other similar plans is increased to $23,500.

The catch-up contribution limit for 401(k) and other similar plans for people age 50 and over remains at $7,500. For people who turn 60, 61, 62, or 63 in 2025, the catch-up contribution limit is $11,250.

The maximum possible contribution for defined contribution plans (e.g., for a self-employed person with a sufficiently high income contributing to a solo 401(k)) is increased to $70,000.

Health Savings Account Contribution Limits

For 2025, the maximum HSA contribution for somebody with self-only coverage under a high deductible health plan is $4,300. The limit for somebody with family coverage under such a plan is $8,550.

The HSA catch-up contribution limit for people age 55 and over is not inflation adjusted, so it remains at $1,000.

Capital Gains and Qualified Dividends

For 2025, long-term capital gains and qualified dividends face the following tax rates:

• 0% tax rate if they fall below $96,700 of taxable income if married filing jointly, $64,750 if head of household, or $48,350 if filing as single or married filing separately.
• 15% tax rate if they fall above the 0% threshold but below $600,050 if married filing jointly, $566,700 if head of household, $533,400 if single, or $300,000 if married filing separately.
• 20% tax rate if they fall above the 15% threshold.

Alternative Minimum Tax (AMT)

The AMT exemption amount is increased to:

• $88,100 for single people and people filing as head of household,
• $137,000 for married people filing jointly, and
• $68,500 for married people filing separately.

Annual Gift Tax Exclusion

For 2025 the annual exclusion for gifts will be $19,000.

Estate Tax

The estate tax exclusion is increased to $13,990,000 per decedent.

Pass-Through Business Income

With respect to the 20% deduction for qualified pass-through income, for 2025, the threshold amount at which the “specified service trade or business” phaseout and the wage (or wage+property) limitations begin to kick in will be $394,600 for married taxpayers filing jointly and $197,300 for single taxpayers, people filing as head of household, and for married people filing separately.