The IRS recently released annual inflation adjustments for the 2025 tax year. The Revenue Procedure 2024-40 document outlines updates and modifications to 60+ tax provisions that will affect taxpayers submitting returns in 2026.

How Will This Affect My Taxes During 2025?

Many tax payers will benefit from these inflation-driven adjustments and potentially see more money when filing their 2025 taxes in 2026. While tax rate brackets remain the same, adjustments have been made to income levels for all tax brackets with the exception of the top tax rate (37%).

To see how your tax rate may be affected, please view the adjusted tax brackets below comparing tax years 2024 to 2025:

2024 Single Filer	Tax Bracket	2025 Single Filer
$626,351+	37%	$626,351+
$243,726 to $609,350	35%	$250,526 to $626,350
$191,951 to $243,725	32%	$197,301 to $250,525
$100,526 to $191,950	24%	$103,351 to $197,300
$47,151 to $100,525	22%	$48,476 to $103,350
$11,601 to $47,150	12%	$11,926 to $48,475
$11,600 or less	10%	$0 to $11,925

2024 Married Filing Jointly or Qualifying Widow	Tax Bracket	2025 Married Filing Jointly or Qualifying Widow
$731,201+	37%	$751,601+
$487,451 to $731,200	35%	$501,051 to $751,600
$383,901 to $487,450	32%	$394,601 to $501,050
$201,051 to $383,900	24%	$206,701 to $394,600
$94,301 to $201,050	22%	$96,951 to $206,700
$23,201 to $94,300	12%	$23,851 to $96,950
$0 to $23,200	10%	$0 to $23,850

2024 Married Filing Separately	Tax Bracket	2025 Married Filing Separately
$365,601+	37%	$375,801+
$243,726 to $365,600	35%	$250,526 to $375,800
$191,951 to $243,725	32%	$197,301 to $250,525
$100,526 to $191,950	24%	$103,351 to $197,300
$47,151 to $100,525	22%	$48,476 to $103,350
$11,601 to $47,150	12%	$11,926 to $48,475
$0 to $11,600	10%	$0 to $11,925

Standard Deductions for 2025 Tax Year

The IRS has also increased standard deductions for both single taxpayers and those married and filing separately for the 2025 tax year.

Standard Deductions for Single Filer & Married Couples Filing Separately

2024 Standard Deductions	2025 Standard Deductions	Change YoY
$14,600	$15,000	+$400

Standard Deductions for Married Couples Filing Jointly

2024 Standard Deductions	2025 Standard Deductions	Change YoY
$29,200	$30,000	+$800

Standard Deductions for Head of Household

2024 Standard Deductions	2025 Standard Deductions	Change YoY
$21,900	$22,500	+$600

Why It Matters

Factoring in these adjustments will provide much needed insight to project tax liabilities for simplistic calculations moving into 2025. Effectively planning for this will help maximize deductions and reduce tax liability.