The IRS updated its tax brackets for 2025, which will apply to income earned in 2025 and reported on tax returns filed by April 2026. The seven tax rates remain unchanged from 2024: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
However, the income ranges for each bracket have been adjusted for inflation.
How Federal Tax Brackets Work
The U.S. tax system is progressive, meaning different portions of your taxable income are taxed at increasing rates as your income rises. You do not pay your highest tax rate on all your income; each portion falls into its respective bracket.
The higher you go, the higher the tax rate on that specific step, but you only pay that higher rate on the money that falls into that step, not on everything you earn.
Let’s say you’re single and you make $70,000 in 2025. Here’s how it breaks down:
- The first $11,925 you earn is taxed at just 10%.
- The money you make from $11,926 up to $48,475 is taxed at 12%.
- Anything you earn from $48,476 up to $70,000 is taxed at 22%.
So, if you earn $70,000, you’re not paying 22% on the whole $70,000. You only pay 22% on the dollars that fall into that last bracket. The rest gets taxed at the lower rates for the earlier brackets.
It’s like buying tickets at a movie theater:
- The first few are super cheap,
- The next batch costs a bit more,
- And only the last few are at the highest price.
But you’re not paying the highest price for every ticket, just for the ones in that previous group.
This system means everyone pays the same rates on the same portions of their income, and only higher earners pay those higher rates, but again, just on the income above each threshold.
It’s designed to be fair and ensure people with lower incomes aren’t taxed as heavily as those earning more.
2025 Federal Income Tax Brackets
Below is a comprehensive HTML table showing the 2025 tax brackets for all filing statuses:
| Tax Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|
| 10% | $0 to $11,925 | $0 to $23,850 | $0 to $11,925 | $0 to $17,000 |
| 12% | $11,926 to $48,475 | $23,851 to $96,950 | $11,926 to $48,475 | $17,001 to $64,850 |
| 22% | $48,476 to $103,350 | $96,951 to $206,700 | $48,476 to $103,350 | $64,851 to $103,350 |
| 24% | $103,351 to $197,300 | $206,701 to $394,600 | $103,351 to $197,300 | $103,351 to $197,300 |
| 32% | $197,301 to $250,525 | $394,601 to $501,050 | $197,301 to $250,525 | $197,301 to $250,500 |
| 35% | $250,526 to $626,350 | $501,051 to $751,600 | $250,526 to $375,800 | $250,501 to $626,350 |
| 37% | $626,351 or more | $751,601 or more | $375,801 or more | $626,351 or more |
Key Points for 2025
- No change in tax rates: The seven federal tax rates remain the same as in previous years.
- Bracket income ranges increased: The income thresholds for each bracket have been adjusted upward to account for inflation.
- Progressive structure: Only the portion of your income within each bracket is taxed at that bracket’s rate.
Planning Ahead
Understanding these brackets can help you plan your tax strategy for this year, including decisions about retirement contributions, tax withholding, and other financial moves. Be sure to consult a tax professional for personalized advice.
