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What’s Changing for the 2025 Filing Year (New Tax Brackets and Standard Deductions)

Tax season isn’t just about deadlines and paperwork,  it’s also about understanding how changes to tax rules affect your bottom line.

For the 2025 tax year (the returns you’ll file in 2026), there are key updates to both tax brackets and standard deductions that every taxpayer should know. Staying informed now helps you plan smarter and potentially keep more of what you earn.

What’s Staying the Same and What’s Moving

 

  1. Federal Income Tax Brackets (2025)

The federal income tax system still uses a progressive tax structure meaning your income is taxed at increasing rates as it goes up through a series of brackets. The tax rates themselves remain at the familiar seven levels: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Tax Foundation

What does change each year are the income thresholds, the ranges of income that correspond with each rate. For 2025, these thresholds are adjusted for inflation so that taxpayers aren’t pushed into higher brackets simply because of rising wages. Tax Foundation

Here’s a snapshot of how brackets look for 2025 (taxable income ranges):

  • 10%: Lowest portion of income
  • 12%–35%: Mid-level ranges
  • 37%: Top end  for example above $626,350 for single filers and $751,600+ for married filing jointly. Tax Foundation

(Exact amounts vary by filing status and taxable income. These are adjusted each year for inflation.)

  1. Standard Deduction Increases

The standard deduction is one of the biggest tools taxpayers use to reduce taxable income  especially if you don’t itemize.

For tax year 2025, the IRS announced adjusted standard deduction amounts:

  • $15,750 for single filers (and married filing separately)

  • $31,500 for married couples filing jointly

  • $23,625 for head of household
     These figures reflect both inflation updates and provisions from new tax legislation. IRS+1

Putting these amounts in context:

  • These are higher than the 2024 figures (e.g., single filers had a $14,600 deduction).
  • A higher standard deduction means more tax-free income for most taxpayers before they owe anything. IRS

 Bonus Deduction for Seniors (2025–2028)
 If you (or your spouse) are age 65 or older, you may qualify for an extra bonus deduction – up to $6,000 per person and you can take it even if you itemize deductions. Fidelity

So What Does This Mean for You?

  1. More Income Tax-Free

A higher standard deduction means more of your income is tax-free, a tangible benefit you can claim without extra paperwork. Most taxpayers will find this helpful in reducing taxable income.

  1. Bracket Adjustments Help Prevent “Bracket Creep”

Because income thresholds rose with inflation, you’re less likely to move into a higher tax bracket just because of wage increases. This keeps tax burdens more predictable year over year.

  1. Planning Matters (Especially for Business Owners)

If you run a business or report self-employment income:

  • Pay attention to taxable income projections now. Knowing where you fall in the brackets helps you estimate taxes before filing.

  • Consider year-end moves  like timing expenses or deductions  to make the most of standard and itemized options before filing season.

Don’t wait until January or February to understand your tax picture. These changes are already in effect for 2025 filings, and early planning can make tax season smoother and potentially save you money.

Whether you need help interpreting your year-end numbers or want CPA-ready bookkeeping before filing, Basc Expertise is here to help you stay organized, strategic, and confident through tax season.

 

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