With the holidays right around the corner, it’s a hard pill to swallow that tax season is also coming up. Inflation has impacted many American wallets, and to help taxpayers prepare to file in 2025, the Internal Revenue Service has announced annual inflation adjustments that highlight changes to more than 60 tax provisions.
Last year, the IRS released adjustments for the 2024 tax year and encouraged taxpayers to look for the standard deduction for single and married people filing, USA Today reported.
The standard deduction went up by $750 to $14,600 for single taxpayers and married payers filing separately. The deduction for married couples filing together increases by $1,500 to $29,200. For those filing as a head of household, the standard deduction went up to $21,900, an $1,100 increase.
Ahead of next year’s tax season, here’s what you need to know about last year’s findings and what to expect in 2025.
Tax year 2024 brackets and tax rates
In last year’s adjustments release, the IRS shared a breakdown of its seven income brackets and tax rates. In addition to noting that the top tax rate remained at “37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly),” it also noted the following:
- 37% — Single income over $609,350 and married couples filing jointly with income over $731,200
- 35% — Single income over $243,725 and married couples filing jointly with income over $487,450
- 32% — Single income over $191,950 and married couples filing jointly with income over $383,900
- 24% — Single income over $100,525 and married couples filing jointly with income over $201,050
- 22% — Single income over $47,150 and married couples filing jointly with income over $94,300
- 12% — Single income over $11,600 and married couples filing jointly with income over $23,200
- 10% — Single income of $11,600 or less and married couples filing jointly with income less than $23,200
When does tax season start?
Though Tax Day is April 15, it’s unclear when the official start of tax season will be. According to KGW8, the IRS typically designates when it will begin to accept and process tax returns in early to mid-January.
Tax year 2025 adjustments
In October, the IRS announced adjustments for the tax year 2025, noting that filers should expect higher standard deductions. Single taxpayers and married individuals filing separately should look out for the standard deduction to rise to $15,000. For couples who file jointly, that standard deduction will climb to $30,000. It also noted the following:
- 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)