What are the tax brackets for 2025?

The seven core federal income tax rates remain at 10%, 12%, 22%, 24%, 32%, 35% and 37%. Ameriprise Financial
Inflation adjustments have shifted the income thresholds upward for each bracket. https://www.ameriprise.com/financial-goals-priorities/taxes/retirement-limits-tax-brackets?utm_source=chatgpt.com

Tax Rate	For Single Filers	For Married Individuals Filing Joint Returns	For Heads of Households
10%	$0 to $11,925	$0 to $23,850	$0 to $17,000
12%	$11,925 to $48,475	$23,850 to $96,950	$17,000 to $64,850
22%	$48,475 to $103,350	$96,950 to $206,700	$64,850 to $103,350
24%	$103,350 to $197,300	$206,700 to $394,600	$103,350 to $197,300
32%	$197,300 to $250,525	$394,600 to $501,050	$197,300 to $250,500
35%	$250,525 to $626,350	$501,050 to $751,600	$250,500 to $626,350
37%	$626,350 or more	$751,600 or more	$626,350 or more

Source: Internal Revenue Service, "Revenue Procedure 2024-40."

Progressive system reminder: The top rate (37%) only applies to the portion of taxable income above the threshold — not their entire income. IRS
Planning opportunities: With thresholds shifting upward, clients might have more breathing room before moving into a higher bracket, which can influence timing of income recognition, deductions, and tax-deferral strategies.
High-income focus: For those nearing the 32%, 35%, or 37% brackets, careful planning around taxable income, bonus timing, capital gains, and retirement contributions can make a meaningful difference.
Standard deduction and inflation adjustments: These changes affect the effective taxable income and therefore bracket placement—worth discussing when reviewing a client’s 2025 strategy. U.S. Bank

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