2025 Federal Income Tax Brackets

(Based on IRS 2025 Updates)

Staying informed about the federal income tax brackets is crucial for effective tax planning and financial management. Below are the updated tax brackets for 2025, reflecting the latest adjustments for inflation by the IRS. These brackets apply to taxable income and vary depending on your filing status.

For Single Filers:

  • 10%: Up to $11,925

  • 12%: $11,926 to $23,850

  • 22%: $23,851 to $48,475

  • 24%: $48,476 to $103,350

  • 32%: $103,351 to $197,300

  • 35%: $197,301 to $250,525

  • 37%: Over $250,525

For Married Couples Filing Jointly:

  • 10%: Up to $23,850

  • 12%: $23,851 to $47,700

  • 22%: $47,701 to $96,950

  • 24%: $96,951 to $206,700

  • 32%: $206,701 to $394,600

  • 35%: $394,601 to $501,050

  • 37%: Over $501,050

For Heads of Households:

  • 10%: Up to $17,625

  • 12%: $17,626 to $35,250

  • 22%: $35,251 to $70,750

  • 24%: $70,751 to $147,950

  • 32%: $147,951 to $247,300

  • 35%: $247,301 to $346,600

  • 37%: Over $346,600

Key Notes for 2025 Tax Brackets

  1. Marginal Tax Rates: The U.S. uses a progressive tax system, meaning your income is taxed at different rates as it increases. Only the income within each bracket is taxed at the corresponding rate.

  2. Standard Deduction: The standard deduction amounts for 2025 are adjusted for inflation. These amounts reduce your taxable income before applying the tax brackets.

    • Single: $14,600

    • Married Filing Jointly: $29,200

    • Married Filing Separately: $14,600

    • Head of Household: $21,900

  3. Tax Planning: Understanding your tax bracket can help you make informed decisions about deductions, credits, and retirement contributions to minimize your tax liability.

Why Understanding Tax Brackets Matters

Knowing your tax bracket helps you:

  • Plan for tax-efficient investments.

  • Maximize deductions and credits.

  • Strategize retirement contributions.

  • Avoid surprises during tax season.

Why Choose Pennywise Consulting Corporation?
Navigating the complexities of federal income tax brackets can be challenging. At Pennywise Consulting Corporation, we provide expert guidance to help you optimize your tax strategy and maximize your savings. Whether you’re an individual, business, or nonprofit, our team is here to ensure compliance and help you achieve your financial goals.

Contact us today to schedule a consultation and take control of your tax planning for 2025!

Disclaimer: The information provided is based on IRS updates for 2025 and is subject to change.