Here's How Your Taxes Will Change in 2025

US taxpayers got a sense of how their tax bill will change for 2025 on Tuesday, when the IRS announced its annual inflation adjustment for that tax year. The Wall Street Journal reports it was a roughly 2.8% tweak. How that shakes out:

• Single taxpayers and married individuals filing separately will see the standard deduction rise to $15,000, up $400 from 2024.
• For couples who file jointly, that standard deduction will be $30,000 for 2025, an $800 year-over-year rise.
• Heads of households will get a $22,500 standard deduction, a $600 increase from 2024.
• The increases aren't as significant as those announced in recent years, per the AP, which gives the example of single filers' standard deduction, which increased by $750 between the 2023 and 2024 tax years.

• Income thresholds for all seven federal tax bracket levels were also adjusted upward. The top tax rate, which holds at 37%, will apply to incomes greater than $626,350 for single taxpayers, for example, up from $609,350 in 2024. For married couples, the threshold for the top bracket will rise about $20,000, to income north of $751,600. (See the full list of marginal rates here.)
• The Journal notes that some tax parameters are excluded from the inflation adjustments: "The $2,000 child tax-credit maximum and the $3,000 limit on capital losses that can be deducted from ordinary income aren't indexed for inflation."
• On the estate and gift-tax fronts, the federal estate-tax exclusion figure will rise to $13.99 million for deaths in 2025, up from $13.61 million this year. Separately, the threshold for tax-free gifts will be $19,000 for 2025, up from $18,000 in 2024.
• An asterisk from the Journal: Under the 2017 Tax Cuts and Jobs Act enacted by then-President Trump, a number of provisions for individual taxpayers will expire at the end of 2025, unless Congress extends them. For example, the top ordinary income-tax rate will revert to the 2017 level of 39.6% and apply to a lower level of income.

(More income tax stories.)