The United States Internal Revenue Service (IRS) adjusts Tax Brackets each year so that inflation does not pose an unduly large problem for beneficiaries. After all, inflation increases wages, Social Security benefits and income in general. If the IRS does not change the Tax Brackets, a citizen may end up paying more taxes.
That is why indexing for inflation makes sense: If there is a higher wage because of inflation it is normal that the tax bracket of taxes will also increase. Otherwise we would be talking about bracket creep, something the IRS tries to avoid at all costs. Therefore, it is possible that next year you will pay taxes in a different way. It all depends on the bracket you belong to.
What will the IRS Tax Bracket look like in 2025?
The best way to see what the Tax Bracket will be is to take a direct look at the IRS table. Thanks to this table we can see what percentage of our income we will have to pay. This way we can plan according to our usual salary.
The new IRS Tax Brackets for 2025 will be as follows:
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 | $0 – $17,000 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 | $17,001 – $64,850 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 | $64,851 – $103,350 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 | $103,351 – $197,300 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 | $197,301 – $250,500 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 | $250,501 – $626,350 |
| 37% | Over $626,350 | Over $751,600 | Over $626,350 |
Remember that if you have problems with your taxes you can go to a professional. Also, try to keep in mind that it is possible to send the documentation digitally to speed up the process. In a very short time the Tax Season will be open, so we must be attentive to pay our taxes on time and send the annual Tax Return.
The most striking thing is that with these new Tax Brackets we will have an important change with respect to 2024. Now the following tax brackets are a little higher, which makes it possible for citizens to have a better standard of living. Do not lose sight of your taxes at any time to avoid problems with the IRS.
