2025
Tax Rates
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Tax Rates
Income Tax Brackets
Income tax brackets segment income into various brackets, each associated with a specific tax rate that applies solely to the portion of income within that particular bracket.
Single
| If taxable income is | The tax rate is |
|---|---|
| $0 to $11,925 | 10% of taxable income |
| $11,925 to $48,475 | $1,192.50 + 12% of the amount over $11,925 |
| $48,475 to $103,350 | $5,578.50 + 22% of the amount over $48,475 |
| $103,350 to $197,300 | $17,651 + 24% of the amount over $103,350 |
| $197,300 to $250,525 | $40,199 + 32% of the amount over $197,300 |
| $250,525 to $626,350 | $57,231 + 35% of the amount over $250,525 |
| Over $626,350 | $188,769.75+ 37% of the amount over $626,350 |
Head of Household
| If taxable income is | The tax rate is |
|---|---|
| $0 to $17,000 | 10% of taxable income |
| $17,000 to $64,850 | $1,700 + 12% of the amount over $17,00 |
| $64,850 to $103,350 | $7,442 + 22% of the amount over $64,850 |
| $103,350 to $197,300 | $15,912 + 24% of the amount over $103,350 |
| $197,300 to $250,500 | $38,460 + 32% of the amount over $197,300 |
| $250,500 to $626,350 | $55,484 + 35% of the amount over $250,500 |
| Over $626,350 | $187,031,50 + 37% of the amount over $626,350 |
Married Filing Jointly
| If taxable income is | The tax rate is |
|---|---|
| $0 to $23,850 | 10% of taxable income |
| $23,850 to $96,950 | $2,385 + 12% of the amount over $23,850 |
| $96,950 to $206,700 | $11,157 + 22% of the amount over $96,950 |
| $206,700 to $394,600 | $35,302+ 24% of the amount over $206,700 |
| $394,600 to $501,050 | $80,398 + 32% of the amount over $394,600 |
| $501,050 to $751,600 | $114,462 + 35% of the amount over $501,050 |
| Over $751,600 | $202,154.50 + 37 % of the amount over $751,600 |
Married Filing Separately
| If taxable income is | The tax rate is |
|---|---|
| Not over $11,925 | 10% of taxable income |
| $11,925 to $48,475 | $1,192.50+ 12% of the amount over $11,925 |
| $48,475 to $103,350 | $5,578.50 + 22% of the amount over $48,475 |
| $103,350 to $197,300 | $17,651 + 24% of the amount over $103,350 |
| $197,300 to $250,525 | $40,199 + 32% of the amount over $197,300 |
| $250,525 to $375,800 | $57,231 + 35% of the amount over $250,525 |
| Over $375,800 | $101,077.25 + 37% of the amount over $375,800 |
Standard Mileage Rate
Standard mileage rates are used for calculating the deductible expenses related to using a personal vehicle for work-related purposes. The rates are typically based on the number of miles driven and are meant to cover the cost of operating a vehicle (fully electric, hybrid, gasoline or diesel-powered), including fuel, maintenance, and depreciation.
| USE | RATE |
|---|---|
| Business | 70 cents |
| Medical Care or Move (Military only) | 21 cents |
| Charitable | 14 cents |
Standard Deduction
The standard deduction is a set amount that taxpayers can subtract from their adjusted gross income to reduce their taxable income. It is a flat dollar amount that varies depending on the taxpayer's filing status and is intended to simplify the tax filing process for individuals who may not have many itemized deductions. Taxpayers can choose to take the standard deduction or itemize their deductions, whichever results in a lower taxable income.
| Filing Status: | Standard Deduction: |
|---|---|
| Married Filing Jointly/Surviving Spouses | $30,000 |
| Heads of Households | $22,500 |
| Single | $15,000 |
| Married Filing Separately | $15,000 |
Education
The IRS offers education credits and student loan deductions to help taxpayers save money on education-related expenses. Education credits can help offset the cost of tuition, fees, and other eligible expenses for higher education.
| Name | Maximum Credit |
|---|---|
| American Opportunity Credit (AOTC) | $2,500 |
| Lifetime Learning Credit (LLC) | $2,000 |
| Student Loan Interest Deduction | $2,500 |
Child Tax Credit
The Child Tax Credit (CTC) is a partially refundable financial benefit provided by the government to eligible families or individuals who have dependent children. It is designed to help reduce the financial burden of raising children by providing a tax credit that directly reduces the amount of tax owed. The credit is typically based on the number of qualifying children and their age.
| Maximum Credit | |
|---|---|
| Child Tax Credit | $2,000 |
| Advance CTC (Refundable Portion) | $1,700 |
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a refundable tax credit for low to moderate-income working individuals and families. It is designed to help reduce the tax burden and provide financial support to those who need it.
| Number of Qualifying Children | ||||
|---|---|---|---|---|
| One | Two | Three or More | None | |
| Earned Income Amount | $12,730 | $17,880 | $17,880 | $8,490 |
| Maximum Credit Amount | $4,328 | $7,152 | $8,046 | $649 |
| Threshold Phaseout Amount (Married Filing Jointly) | $30,470 | $30,470 | $30,470 | $17,730 |
| Completed Phaseout Amount (Married Filing Jointly) | $57,554 | $64,430 | $68,675 | $26,214 |
| Threshold Phaseout Amount (All other filing statuses) | $23,350 | $23,350 | $23,350 | $10,620 |
| Completed Phaseout Amount (All other filing statuses) | $50,434 | $57,310 | $61,555 | $19,104 |
Adoption Tax Credit
The Adoption Tax Credit is a nonrefundable tax credit that provides financial assistance to individuals who have adopted a child. The adoption tax credit helps offset some of the costs associated with adoption and provides support to families welcoming a new child into their home.
| Name | Maximum Credit |
|---|---|
| Adoption Tax Credit | $17,280 |
Retirement
The IRS sets annual contribution limits for retirement accounts like 401(k) plans and IRAs to help individuals save for retirement while receiving tax benefits. Contributions to these accounts are often tax-deductible, and the earnings grow tax-deferred until withdrawal.
| Name | Contribution Limit |
|---|---|
| 401(k), 403(b), most 457 plans | $23,500 |
| Traditional/Roth IRAs | $7,000 |
| SIMPLE IRAs | $16,500 |
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