(KNSI) – As the rate of inflation slows down, the changes to brackets in the U.S. tax code are stabilizing.
The Internal Revenue Service released the 2025 brackets this week, with income thresholds adjusting up by 2.8%. That means an individual’s first $11,925 will be taxed at 10%. Income between $11,925 and $48,475 sees 12% going to the federal government. It scales up progressively until $626,350. Any income over that amount is dinged at 37%.
Married couples filing jointly begin at $23,850, and it ramps up until your income reaches $751,600. The changes affect a lot more than just the tax brackets, including the earned income tax credit for families and the alternative minimum tax thresholds.
Another positive change for taxpayers is the increase in the standard deduction. In 2025, it is set at $30,000 for married couples and $15,000 for single filers.
A link to the new tax brackets is here.
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