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IRS Tax Bracket Changes

Writer's picture: David NguyenDavid Nguyen

The IRS announced today that federal tax brackets for 2025 will be raised, which applies for 2025 tax returns filed in 2026.


Federal income tax brackets show how much you owe on each part of your taxable income, which you can calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income (AGI).


Below are the changes that will go into effect for the 2025 tax year:


37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly).


35% for incomes over $250,525 ($501,050 for married couples filing jointly).


32% for incomes over $197,300 ($394,600 for married couples filing jointly).


24% for incomes over $103,350 ($206,700 for married couples filing jointly).


22% for incomes over $48,475 ($96,950 for married couples filing jointly).


12% for incomes over $11,925 ($23,850 for married couples filing jointly).


10% for incomes of $11,925 or less ($23,850 or less for married couples filing jointly).



In addition, the IRS unveiled 2025 inflation adjustments for the long-term capital gains tax brackets, which applies to investments owned for more than one year.


The capital gains rate you pay is based on which bracket you fall into based on your taxable income.

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