What are the tax brackets for 2025?
- Jacqueline Elizabeth
- 2 days ago
- 1 min read
🔍 What’s Changing 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."
🧮 Why It Matters for our clients
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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