According to estimates, inflation adjustments to the internal revenue code are expected to yield increases of 2.8 percent compared to 2024 amounts. This means wider tax brackets and increased exemptions, among other things. With the U.S. Bureau of Labor Statistics consumer price index (CPI) moderating, this increase is about 50 percent less than 2024’s inflation adjustment. Below, we’ll look at what the projected 2025 inflation adjustment means in terms of dollars and cents for you and your taxes.
Individual Income Tax Brackets
The tables below illustrate what the individual income tax rates and brackets are projected to be for 2025.
Projected Individual Income Tax Brackets & Rates: Tax Year 2025
| Single Taxpayers | |
| 10% | 0 - $11,925 |
| 12% | $11,926 - $48,475 |
| 22% | $48,476 - $103,350 |
| 24% | $103,351 - $197,300 |
| 32% | $197,301 - $250,525 |
| 35% | $250,526 - $626,350 |
| 37% | $626,351 and Over |
| Married Filing Jointly | |
| 10% | 0 - $23,850 |
| 12% | $23,851 - $96,950 |
| 22% | $96,951 - $206,700 |
| 24% | $206,701 - $394,600 |
| 32% | $394,601 - $501,050 |
| 35% | $501,051 - $751,600 |
| 37% | $751,601 and Over |
| Married Filing Separately | |
| 10% | 0 - $11,925 |
| 12% | $11,926 - $48,475 |
| 22% | $48,476 - $103,350 |
| 24% | $103,351 - $197,300 |
| 32% | $197,301 - $250,525 |
| 35% | $250,526 - $375,800 |
| 37% | $375,801 and Over |
| Heads of Household | |
| 10% | 0 - $17,000 |
| 12% | $17,001- $64,850 |
| 22% | $64,851 - $103,350 |
| 24% | $103,351 - $197,300 |
| 32% | $197,301 - $250,500 |
| 35% | $250,501 - $626,350 |
| 37% | $626,351 and Over |
Trusts & Estates Tax Brackets
The table below illustrates what the income rates and brackets are expected to look like for Trusts and Estates in 2025.
| Projected Trusts and Estates Tax Brackets & Rates: Tax Year 2025 | |
| 10% | 0 - $3,150 |
| 24% | $3,151- $11,450 |
| 35% | $11,451 - $15,650 |
| 37% | $15,651 and Over |
Standard Deduction Amounts
The table below illustrates what the projected standard deduction amounts will be for 2025, with a comparison to 2024.
| Projected Standard Deduction Amounts | ||
| 2024 | 2025 | |
| Single | $14,000 | $15,000 |
| Married Filing Jointly | $29,200 | $30,000 |
| Married Filing Separately | $14,000 | $15,000 |
| Head of Household | $21,900 | $22,500 |
Alternative Minimum Tax (AMT)
The table below illustrates the anticipated AMT exemptions for 2025.
| AMT Exemption Amounts Tax Year 2025 | |
| Single | $88,100 |
| Married Filing Jointly | $137,000 |
| Married Filing Separately | $68,500 |
| Trust & Estates | $30,700 |
Capital Gains
The rates applied to long-term capital gains are not expected to change for 2025; however, the brackets that apply to different rates will expand. Note that, in considering the table below, a 20 percent tax rate applies to capital gains that are over the 37 percent ordinary tax rate threshold. Furthermore, capital gains on art and collectibles are subject to other exceptions.
| Maximum Capital Gains Rates for 2025 | ||
| Zero Rate | 15% Rate | |
| Single | $48,350 | $53,340 |
| Married Filing Jointly | $96,700 | $600,050 |
| Married Filing Separately | $48,350 | $300,000 |
| Head of Household | $64,750 | $566,700 |
| Trusts & Estates | $3,250 | $15,900 |
Conclusion
First, it’s important to remember that all the figures above are only projections. The IRS will not publish the official numbers until later this year. Moreover, as these rates and brackets have increased, they have done so significantly less than in 2024 and 2023, largely driven by lower inflation.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact their CPA regarding the topics in these articles.
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