While tax season may have passed for the 2023 tax year and 2024 is coming up soon, if you’re keeping an eye on your taxes for next year, you’re still keenly interested in what your 2025 income tax burden might look like.
Therefore, which tax bracket you’re in and what tax rate you’ll pay are important pieces of the puzzle. That’s why taxpayers need to know and understand the annual changes to the tax brackets, and how the tax bracket you’re in dictates the rate you’ll pay.
But don’t worry if you’re not quite sure where you stand for the 2025 tax year (income taxes you’ll pay next year but for returns you’ll file in 2026)—you’ve come to the right place. I’ll lay out the seven tax brackets and rates for both 2024 and 2025 in easy-to-understand tables, provide mathematical examples of how the tax brackets work, explain how to get a clearer understanding of what you owe with effective tax rates, offer tips for reducing your tax bill, and more. This should help with your understanding of how they’ve changed from this year to the next one.
Featured Financial Products
Related: The Most Popular Tax Deduction Just Got Bigger for 2025
Federal Income Tax Rates for 2024 and 2025
The federal tax rates themselves haven’t changed from 2024 to 2025, since they’re not impacted by inflation from one year to the next. For both years, the seven federal tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
However, nothing stays the same forever. Most of these tax rates are scheduled to rise starting with the 2026 tax year. That’s because the federal tax rates were lowered by the Tax Cuts and Jobs Act beginning with the 2018 tax year—but the rate reduction is only temporary.
Once the temporary reduction expires, the seven federal income tax rates will be 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
The upcoming rate change isn’t set in stone, though. The scheduled rate hike could be delayed, moved up, or even repealed before 2026. However, we probably won’t have any clarity on potential changes until after the federal elections in November. At that point, we’ll know which political parties will control the White House and Congress starting in 2025 and have more information about their tax policy plans.
Related: There Are States That Tax Social Security Benefits: Here’s the List
How Will Tax Brackets Change for 2025?
Good news: You could see a slight decrease in your federal income taxes next year! Thanks to annual inflation adjustments made each year by the IRS, tax brackets have risen—just not as much as the same big increases taxpayers saw in the past couple of years. Why?
Since tax bracket changes trigger on inflation seen during the year, specifically the chained Consumer Price Index measure from the Bureau of Labor Statistics, tax brackets have changed driven by that statistic. And since inflation has slowed down (significantly compared to years past), that means the tax brackets didn’t increase as much as they did in 2023 and 2024. For 2025, the brackets only increased by 2.8%.
Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested’s free retirement planning newsletter.
2025 Tax Brackets for Single Filers
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $11,925 | 10% of taxable income |
| 12% | $11,926 to $48,475 | $1,192.50 plus 12% of amount over $11,925 |
| 22% | $48,476 to $103,350 | $5,578.50 plus 22% of amount over $48,475 |
| 24% | $103,351 to $197,300 | $17,651 plus 24% of amount over $103,350 |
| 32% | $197,301 to $250,525 | $40,199 plus 32% of amount over $197,300 |
| 35% | $250,526 to $626,350 | $57,231 plus 35% of amount over $250,525 |
| 37% | $626,351 or more | $188,769.75 plus 37% of amount over $626,350 |
2025 Tax Brackets for Married Couples Filing Jointly and Surviving Spouses
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $23,850 | 10% of taxable income |
| 12% | $23,851 to $96,950 | $2,385 plus 12% of amount over $23,850 |
| 22% | $96,951 to $206,700 | $11,157 plus 22% of amount over $96,950 |
| 24% | $206,701 to $394,600 | $35,302 plus 24% of amount over $206,700 |
| 32% | $394,601 to $501,050 | $80,398 plus 32% of amount over $394,600 |
| 35% | $501,051 to $751,600 | $114,462 plus 35% of amount over $501,050 |
| 37% | $751,601 or more | $202,154.50 plus 37% of amount over $751,600 |
2025 Tax Brackets for Married Couples Filing Separately
| 10% | $0 to $11,925 | 10% of taxable income |
|---|---|---|
| 12% | $11,926 to $48,475 | $1,192.50 plus 12% of amount over $11,925 |
| 22% | $48,476 to $103,350 | $5,578.50 plus 22% of amount over $48,475 |
| 24% | $103,351 to $197,300 | $17,651 plus 24% of amount over $103,350 |
| 32% | $197,301 to $250,525 | $40,199 plus 32% of amount over $197,300 |
| 35% | $250,526 to $375,800 | $57,231 plus 35% of amount over $250,525 |
| 37% | $375,801 or more | $101,077.25 plus 37% of amount over $626,350 |
2025 Tax Brackets for Head-of-Household Filers
| 10% | $0 to $11,925 | 10% of taxable income |
|---|---|---|
| 12% | $11,926 to $48,475 | $1,192.50 plus 12% of amount over $11,925 |
| 22% | $48,476 to $103,350 | $5,578.50 plus 22% of amount over $48,475 |
| 24% | $103,351 to $197,300 | $17,651 plus 24% of amount over $103,350 |
| 32% | $197,301 to $250,525 | $40,199 plus 32% of amount over $197,300 |
| 35% | $250,526 to $375,800 | $57,231 plus 35% of amount over $250,525 |
| 37% | $375,801 or more | $101,077.25 plus 37% of amount over $626,350 |
The IRS adjusted tax brackets higher by 2.8% for the 2025 tax year. This is the smallest inflation adjustment in at least three years, following a 5.4% increase in 2024 and a 7.1% boost in 2023.
In short: The smaller adjustment for 2025 comes amid rapidly cooling inflation, which dropped to a three-year low in August after touching a 40-year high in 2022. Now, we’ll look at how tax brackets work and then how the 2024 brackets stack up in comparison.
Featured Financial Products
Related: 11 Education Tax Credits and Deductions
How Do the Tax Brackets Work?
Before getting to the 2024 tax brackets, it’s probably worthwhile at this point to explain how the tax brackets work (the explanation might also make more sense now that you’ve seen the 2025 brackets).
Related: Should You File Taxes Early? 9 Benefits of Filing Early
Many people think that all their income is taxed at the rate tied to their tax bracket. However, that’s not how the federal income tax brackets work. Instead, unless you’re in the 10% bracket, at least some of your income will be taxed at a lower tax rate than the rate connected to your tax bracket.
Related: How to Get Your Tax Refund Fast
The U.S. tax code uses marginal tax rates, which basically means that only the income that falls within the taxable income range for each tax bracket is taxed at that bracket’s corresponding tax rate. Income below your marginal tax bracket is taxed at lower rates according to the income ranges for any lower tax bracket. As a result, marginal tax rates reduce income taxes for almost everyone.
Related: 30 Tax Statistics and Facts That Might Surprise You
Example
Nicholas is a single filer and has $60,000 of taxable income for the 2024 tax year. That puts him in the 22% tax bracket. However, he doesn’t owe 22% of $60,000, which would be $13,200 ($60,000 x .22 = $13,200). He actually owes less.
The first $11,600 of Nicholas’s income is taxed at the 10% marginal tax rate, which results in $1,160 of tax.
The next $35,550 of his income (i.e., from $11,601 to $47,150) is taxed at the 12% marginal tax rate, which adds $4,266 of tax.
And, finally, the remaining $12,850 of Nicholas’s income (i.e., from $47,151 to $60,000) is taxed at the 22% rate, which comes to $2,827 of tax.
As a result, Nicholas’s total tax, when all of the separate amounts are added up, comes to $8,253, which is $4,947 less than the $13,200 tax if a flat 22% applied to all his income.
You can also see this calculation method play out in the various federal income tax brackets shown above. You’ll notice that, except for the 10% tax bracket, the tax calculations always begin with a dollar amount that is added to the amount taxed at the bracket’s corresponding marginal tax rate. The dollar amounts represent the tax due on all taxable income in each lower tax bracket.
So, looking at the 22% tax bracket above for single filers, you can see that the tax on income from the 10% and 12% brackets for the 2024 tax year equals $5,426—which is exactly the amount calculated for Nicholas in the example above ($1,160 + $4,266 = $5,426). Then, to determine the total tax amount, the tax rate tied to the taxpayer’s tax bracket is applied to the remaining income (i.e., the amount over the previous bracket’s upper threshold). The resulting amount is added to the tax from the lower brackets.
It’s important to note, though, that the tax amount resulting from use of the tax brackets isn’t necessarily what you will owe the IRS when your tax return is finished. After the tax is calculated, your final tax bill could be lower once any tax credits, withheld taxes, or estimated tax payments are subtracted from the total.
In some cases, your credits, withholding, and estimated payments can surpass the amount calculated using the tax brackets, in which case you might be due a refund.
Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested’s free retirement planning newsletter.
Federal Income Tax Brackets for 2024
If you’re working on your 2024 taxes, you’ll want to know the tax brackets for the 2024 tax year, which can be found below. You’ll use these brackets for filing your 2024 tax return, which is due April 15, 2025.
2024 Tax Brackets for Single Filers
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $11,600 | 10% of taxable income |
| 12% | $11,601 to $47,150 | $1,160 plus 12% of amount over $11,600 |
| 22% | $47,151 to $100,525 | $5,426 plus 22% of amount over $47,150 |
| 24% | $100,526 to $191,950 | $17,168.50 plus 24% of amount over $100,525 |
| 32% | $191,951 to $243,725 | $39,110.50 plus 32% of amount over $191,150 |
| 35% | $243,726 to $609,350 | $55678.50 plus 35% of amount over $243,725 |
| 37% | $609,351 or more | $183,647.25 plus 37% of amount over $609,350 |
2024 Tax Brackets for Married Couples Filing Jointly and Surviving Spouses
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $23,200 | 10% of taxable income |
| 12% | $23,201 to $94,300 | $2,320 plus 12% of amount over $23,200 |
| 22% | $94,301 to $201,050 | $10,852 plus 22% of amount over $94,300 |
| 24% | $201,051 to $383,900 | $34,337 plus 24% of amount over $201,050 |
| 32% | $383,901 to $487,450 | $78,221 plus 32% of amount over $383,900 |
| 35% | $487,451 to $731,200 | $111,357 plus 35% of amount over $487,450 |
| 37% | $731,201 or more | $196,669.50 plus 37% of amount over $731,200 |
2024 Tax Brackets for Married Couples Filing Separately
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $11,600 | 10% of taxable income |
| 12% | $11,601 to $47,150 | $1,160 plus 12% of amount over $11,600 |
| 22% | $47,151 to $100,525 | $5,426 plus 22% of amount over $47,150 |
| 24% | $100,526 to $191,950 | $17,168.50 plus 24% of amount over $100,525 |
| 32% | $191,951 to $243,725 | $39,110.50 plus 32% of amount over $191,150 |
| 35% | $243,726 to $365,600 | $55,678.50 plus 35% of amount over $243,725 |
| 37% | $365,601 or more | $98,334.75 plus 37% of amount over $365,600 |
2024 Tax Brackets for Head-of-Household Filers
| Tax Rate | Taxable Income Range | Tax Calculation |
|---|---|---|
| 10% | $0 to $16,550 | 10% of taxable income |
| 12% | $16,551 to $63,100 | $1,655 plus 12% of amount over $16,550 |
| 22% | $63,101 to $100,500 | $7,241 plus 22% of amount over $63,100 |
| 24% | $100,501 to $191,950 | $15,469 plus 24% of amount over $100,500 |
| 32% | $191,951 to $243,700 | $37,417 plus 32% of amount over $191,150 |
| 35% | $243,701 to $609,350 | $53,977 plus 35% of amount over $243,700 |
| 37% | $609,351 or more | $181,954.50 plus 37% of amount over $609,350 |
Related: Child Tax Credit FAQs [What Every Parent Needs to Know]
Featured Financial Products
Inflation Adjustments for 2025 Tax Brackets From 2024
As noted above, the tax rates for 2025 are the same as the rates for 2024—10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, the taxable income ranges for each federal income tax bracket are adjusted each year to account for inflation. As a result, the tax brackets for 2025 are different than the 2024 brackets.
Inflation adjustments increase both the “floor” and “ceiling” of each tax bracket. They also expand the “width” of each bracket’s taxable income range (i.e., the gap between the bracket’s lower and upper income thresholds).
For instance, the 22% tax bracket for single filers applies to $50,650 of income for the 2023 tax year (i.e., income from $44,726 to $95,375), but it applies to $53,375 of income for 2024 (i.e., income from $47,151 to $100,525) and $54,875 of income in 2025 ($48,475 to $103,350). That’s an increase of about 5.4% to the bracket’s width from 2023 to 2024 and but only 2.8% for 2024 to 2025. (For reference, the bracket ranges increased an eye-popping 7.1% from 2022 to 2023.)
But don’t worry—the annual adjustments for inflation are actually a good thing. They help prevent “bracket creep,” which is when you find yourself in a higher tax bracket from one year to the next even though your income grows slower than the rate of inflation.
For example, if Nicholas, who is a single filer, sees his taxable income grow from $100,000 to $105,000 from 2024 to 2025, he’s still going to be in the 22% bracket when he completes his 2025 tax return. However, if the bracket’s width had increased by a more modest amount for 2025—say, by 1.0%—then Nicholas would find a portion of his income in the 24% bracket, which would apply to single filers once 2025 income exceeds about $101,530 under a 1.0% increase scenario.
Related: Charitable Tax Deduction: What to Know Before Donating
What’s Your Effective Tax Rate?
There’s a different tax rate that you may have heard of: an effective tax rate. It refers to the percentage of your taxable income paid in income tax. Because use of marginal tax rates results in your income being taxed at different rates, it’s not necessarily the best indicator of your overall income tax burden. Many people believe using your effective tax rate provides a clearer picture.
Related: Retirement Plan Contribution Limits and Deadlines for 2024 + 2025
To calculate your effective tax rate, divide your tax as calculated using the tax brackets or tax tables (Line 16 on your 2024 Form 1040) by your taxable income (Line 15 on your 2023 return). (Form 1040 for 2025 hasn’t yet been released.)
To illustrate, assume you’re a single taxpayer with a 2024 taxable income of $50,000. According to the 2024 tax bracket for single filers, you owe $6,053 in tax. In that case, your effective tax rate is rounded to 12.1% ($6,053 ÷ $50,000 = 0.12106), even though you fall within the 22% tax bracket.
Featured Financial Products
Related: 8 Free Tax Filing Options for 2024
Tips for Lowering Your Tax Rate for the 2025 Tax Year
What can you do if it looks like you might be in a higher tax bracket for the 2025 tax year? My advice is to do whatever you can between now and the end of the year to lower your taxable income. If you can bring your taxable income down enough, you just might find yourself in a lower tax bracket when you file your federal tax return next year.
Here are a few common ways to bring down your taxable income for the year.
Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested’s free retirement planning newsletter.
Contribute to “Pre-Tax” Retirement Savings Accounts
With “pre-tax” retirement accounts, you get a tax break when you put money in the account. For example, if you squirrel away money in a traditional IRA, you can generally claim a tax deduction for the amount contributed. Likewise, if you have money taken out of your paycheck and deposited into a traditional 401(k) account, that money isn’t included as income on your W-2 form. Either way, your taxable income for the year is lower, which could put you in a lower tax bracket.
Young and the Invested Tip: If you’re self-employed or a small business owner, you can get similar results by opening and contributing to a SEP IRA, SIMPLE IRA, or solo 401(k) plan.
However, make sure you don’t exceed the contribution limits for these types of retirement accounts. Doing so can result in a stiff penalty from the IRS.
For 2024, the annual contribution limit for all your IRAs is $7,000 if you’re under age 50, or $8,000 if you’re 50 or older. (This extra $1,000, which is only allowed for people who are at least 50 years old, is called a “catch-up” contribution.) The same limits apply for 2025.
The 2024 contribution limit for 401(k) plans is $23,000 if you’re under 50 years ($23,500 in 2025). If you’re at least 50 years old, you can put in up to $30,500 ($31,000 in 2025). In 2025, if you turn 60-63, you can take advantage of a “super” catch-up contribution of $11,250 courtesy of a provision included in the SECURE Act 2.0.
Related: Should You Max Out Your 401(k) Each Year? [Yes…and No]
Put Money Into a Health Savings Account
If you’re covered by a qualified high-deductible health plan (HDHP), you can also make “pre-tax” contributions to a health savings account (HSA). The tax deduction you get for the money contributed to an HSA will lower your taxable income … just like contributions to a traditional IRA.
Related: Best Vanguard Funds to Hold in an HSA
You also have to worry about the annual HSA contribution limits … just like with a traditional IRA or 401(k) plan. The 2024 HSA contribution limits are:
- $4,150 if you have self-only coverage under a HDHP ($4,300 in 2025)
- $8,300 if you have family coverage under a HDHP ($8,550 in 2025)
If you’re at least 55 years old at the end of the year, you can contribute an additional $1,000 for the year.
Related: How to Use Your HSA for Retirement
Give More to Charity
If you plan to itemize instead of claiming the standard deduction, giving more to charity can lower your taxable income. That’s because itemizers can claim a charitable tax deduction for donations to religious, charitable, educational, scientific, or literary organizations.
You can get a deduction for cash or non-cash donations. So, if you want to declutter your house, empty out those closets of any no-longer-needed linens, clothes, shoes, household goods, and anything else you can think of to donate. Doing so could lower your taxable income and cut your 2024 and 2025 tax bills.
If you volunteer for a charitable organization, you can also deduct 14¢ for every mile you drive during the year while volunteering. Parking fees and tolls you pay while volunteering for a charitable organization are also deductible, as long as you aren’t reimbursed for those costs.
You might also get an income tax deduction for donating stock to charity (although the deduction could be limited to a percentage of your adjusted gross income). If you donate appreciated property like stock to a charitable organization, you also won’t have to pay capital gains tax on the increase in value.
However, you generally can’t deduct donations or gifts for which you received a benefit in return (e.g., food, entertainment, or merchandise). In that case, you can only deduct the value of your gift or donation that’s more than the value of the benefit you received.
Pre-Pay Deductible Expenses
When we get closer to the end of the year, paying certain expenses in 2024, instead of in 2025, could also lower your taxable income for the year.
For example, if your child is attending college and you have a tuition bill due in January, paying the bill in December could allow you to claim the American Opportunity tax credit for the 2024 tax year—or claim a larger credit for 2024.
If you itemize, scheduling medical or dental appointments in 2024 that you otherwise wouldn’t bother with until next year could also help lower this year’s taxable income. Just be aware that you can only deduct medical or dental expenses that exceed 7.5% of your adjusted gross income. So, if you’re still not going to spend that much on medical or dental procedures, then it’s not worth scheduling appointments early. However, if you’ve already exceeded that threshold, then pack as many other medical or dental expenses into the year as possible, since you might not be able to deduct the additional medical bills next year.
