The IRS has recently announced the new federal income tax brackets for 2025. These brackets will have an impact on how taxpayers calculate their liabilities.

For individual single taxpayers earning over $626,350, the highest bracket will be 37%. Married couples filing jointly will face this rate at incomes exceeding $751,600. Other brackets include 35% for incomes over $250,525 ($501,050 for couples), 32% for incomes over $197,300 ($394,600 for couples), and lower rates down to 10% for those earning $11,925 or less ($23,850 for couples).

Along with the tax brackets, the standard deduction will also increase in 2025. For married couples, the deduction will rise to $30,000, up from $29,200 in 2024. Single filers will see their deduction increase to $15,000, a rise from $14,600. These changes are part of the tax cuts enacted during former President Donald Trump's administration. However, they are set to expire after 2025 unless Congress takes action to extend them. If the provisions expire, tax brackets will revert to 2017 levels, which include rates of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.