Good news: The IRS bumped up income thresholds by 2.8% for 2025, which basically means less of your paycheck goes to Uncle Sam (if your income stayed flat year-over-year).
Quick breakdown:
Standard deduction jumped to $15,000 (single) / $30,000 (married)
Seven tax brackets remain unchanged at rates from 10% to 37%
But the income ranges shifted upward across the board
What this means: If you earned the same in 2025 as 2024, your tax bill should drop or your refund should grow. You might even slide into a lower bracket depending on where you landed.
The brackets at a glance (2025):
10% kicks in at $0–$11,925 (single) | 12% at $11,925–$48,475 | 22% at $48,475–$103,350 | Top rate (37%) starts at $626,350+
This annual adjustment is the IRS’s way of keeping inflation from quietly pushing Americans into higher tax brackets. TL;DR: Your real tax burden just got a tiny bit lighter — courtesy of bracket creep protection.
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2025 US Tax Brackets Just Shifted — Here's What It Means for Your Paycheck
Good news: The IRS bumped up income thresholds by 2.8% for 2025, which basically means less of your paycheck goes to Uncle Sam (if your income stayed flat year-over-year).
Quick breakdown:
What this means: If you earned the same in 2025 as 2024, your tax bill should drop or your refund should grow. You might even slide into a lower bracket depending on where you landed.
The brackets at a glance (2025): 10% kicks in at $0–$11,925 (single) | 12% at $11,925–$48,475 | 22% at $48,475–$103,350 | Top rate (37%) starts at $626,350+
This annual adjustment is the IRS’s way of keeping inflation from quietly pushing Americans into higher tax brackets. TL;DR: Your real tax burden just got a tiny bit lighter — courtesy of bracket creep protection.