Earlier this week the IRS released the new basic tax table adjustments… think of this as inflation adjusting tables and certain rates.
You may notice not all adjustments are inflated at the same rate… Ex. Annual Gift for 2025 is $19k up from $18k or about 6%, while joint filers standard deductions rose only $800 to $30k or a 3% increase….
Here are some of the high points from the IRS release:
Standard deductions. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024. For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024. For heads of households, the standard deduction will be $22,500 for tax year 2025, an increase of $600 from the amount for tax year 2024.
Annual exclusion for gifts increases to $19,000 for calendar year 2025, rising from $18,000 for calendar year 2024.
Marginal rates. For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:
- 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 $11,925 or less ($23,850 or less for married couples filing jointly).
Our New 2025 Tax Table is in the works… we went with Blue this year to change it up a bit…. The laminated copy that resides in the backpack has been used so much this year, it looks like it has been in the middle of a busy street, run over by automobiles… Good Use and well used!
Will present the full 2025 Tax Table upon completion …which is mainly waiting for the Retirement contribution adjustments- expect lower increases on these if the above calculations hold!
Have a Great “Tax Rate Update” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
