The Internal Revenue Service announced last week the annual inflation adjustments for tax year 2025.
For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024.
For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024. For heads of households, the standard deduction will be $22,500 for tax year 2024, an increase of $600 from the amount for tax year 2024.
For tax year 2025, the top tax rate remains 37 percent for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:
—35 percent for incomes over $250,525 ($501,050 for married couples filing jointly);
—32 percent for incomes over $197,300 ($394,600 for married couples filing jointly);
—24 percent for incomes over $103,350 ($206,700 for married couples filing jointly);
—22 percent for incomes over $48,475...