The IRS has announced key tax changes for 2025, including adjustments to income tax brackets, standard deductions, and capital gains rates due to inflation. These updates will affect how much Americans pay in taxes when filing in 2026.
For income taxes, the top bracket remains at 37%, applying to single filers earning over $626,350 or married couples with income over $751,600.
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The lowest rate, 10%, applies to incomes under $11,925 for individuals and under $23,850 for couples. Meanwhile, standard deductions will increase slightly, with single filers able to claim $15,000 and married couples deducting $30,000. Heads of households will see their deduction rise to $22,500.
Capital gains tax rates will also be adjusted. Single filers with income up to $48,350 and married couples earning up to $96,700 will continue to qualify for the 0% rate on long-term capital gains.
Additionally, the Earned Income Tax Credit will increase to a maximum of $8,046 for those with three or more children. These changes are designed to provide relief for taxpayers as they face rising inflation.
