10/22/2024

IRS Announces New Federal Income Tax Brackets for 2025

The standard deduction will also increase

On Tuesday, the Internal Revenue Service (IRS) announced new federal income tax brackets and standard deductions for 2025.

In its announcement, the agency raised the income thresholds for each bracket, which applies to tax year 2025 for returns filed in 2026. The top rate of 37 percent applies to individuals with taxable income above $626,350 and married couples filing jointly earning $751,600 or more for 2025.

The IRS also boosted figures for dozens of other provisions, including long-term capital gains brackets, estate and gift tax exemption and eligibility for the child tax credit, among others.

Please select this link to read the complete article from CNBC.