Some American workers may see a minor rise in their take-home pay in 2025 due to changes to the IRS federal tax brackets. And for fortunate Americans, this is definitely excellent news.
Compared to the 5.4% adjustment made in 2024, these tax rates grew by 2.8%, reflecting more moderate inflation but still inflation.
The rise in standard deductions, which are now $30,000 for married couples filing jointly and $15,000 for individuals, may result in some taxpayers paying less in taxes if salaries stay the same as they were in 2024, which is a regular occurrence.
Even if their income goes up a little, this gain can put them in a lower tax rate. Their position in the tax brackets at the end of the year will determine everything.
However, given the high cost of commodities like food, gas, and cars, the benefits of this move might be limited.
Furthermore, since under-withholding can result in a tax penalty and over-withholding can result in a refund, it is imperative to routinely examine state and federal tax withholdings to prevent surprises.
Therefore, even if we pay less in taxes up front, we still need to be aware of our limitations, so everything pertaining to taxes needs to be carefully watched.
New
IRS
Tax Brackets for 2025
We will have sufficient knowledge to decide whether or not we will pay higher taxes in 2025 if we just verify this data.
Most of the time, after taking inflation, hikes, and other factors into consideration, we won’t have to pay extra taxes because of these IRS modifications.
We now have new tax brackets as a result. It is important to remember that certain tax brackets are different for individuals and couples.
Additionally, we must remember that we shouldn’t ignore the following exceptions in particular tax brackets:
|
Taxable Income (Single Filers) |
Taxable Income (Married Couples Filing Jointly) |
Tax Rate |
|---|---|---|
| $11,925 or less | $23,850 or less | 10% |
| $11,926 to $48,475 | $23,851 to $96,950 | $1,192.50 (Single) / $2,385 (Married) plus 12% of the amount over $11,925 (Single) / $23,850 (Married) |
| $48,476 to $103,350 | $96,951 to $206,700 | $5,578.50 (Single) / $11,157 (Married) plus 22% of the amount over $48,475 (Single) / $96,950 (Married) |
| $103,351 to $197,300 | $206,701 to $394,600 | $17,651 (Single) / $35,302 (Married) plus 24% of the amount over $103,350 (Single) / $206,700 (Married) |
| $197,301 to $250,525 | $394,601 to $501,050 | $40,199 (Single) / $80,398 (Married) plus 32% of the amount over $197,300 (Single) / $394,600 (Married) |
| $250,526 to $626,350 | $501,051 to $751,600 | $57,231 (Single) / $114,462 (Married) plus 35% of the amount over $250,525 (Single) / $501,050 (Married) |
| $626,351 and above | $751,601 and above | $188,769.75 (Single) / $202,154.50 (Married) plus 37% of the amount over $626,350 (Single) / $751,600 (Married) |
We must consider that we have paid all of our taxes for the year while preparing our tax return. We do not have to pay less in taxes just because we are in a lower tax rate.
Paying all of our taxes is essential to preserving economic stability and preventing any kind of fear.
Also Read: US Government Notifies Members of Requirements for February Supplemental Security Income (SSI) Payment
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.