The IRS recently announced new tax brackets for 2025, providing essential updates for married couples filing jointly. These adjustments, which consider inflation and the cost of living, are set to impact deductions and credits for millions of Americans.
Here’s a breakdown of the changes, including new income thresholds and adjustments to the standard deduction.
Tax Brackets for Married Couples in 2025
The 2025 tax brackets for married couples filing jointly introduce revised income ranges for each tax rate. Here’s how it breaks down:
- 10% Bracket: Income up to $23,850 falls into this rate, providing the lowest tax for qualified couples.
- 12% Bracket: Income above $23,850 up to $96,950.
- 22% Bracket: Income ranging from $96,950 to $171,050.
- 24% Bracket: Income from $171,050 up to $394,600.
- 32% Bracket: Income from $394,600 to $501,050.
- 35% Bracket: Income between $501,050 and $751,600.
- 37% Bracket: The highest rate, applicable to incomes exceeding $751,600.
These adjustments help reduce the impact of “bracket creep,” where inflation shifts taxpayers into higher brackets without a real increase in their purchasing power.
Standard Deduction Increase for 2025
In 2025, the standard deduction for married couples filing jointly rises to $30,000, up from $29,200 in 2024. This deduction is crucial for reducing taxable income and provides a straightforward way to lower tax liability.
For instance, if a couple earns $100,000, applying the standard deduction means they would only be taxed on $70,000, potentially saving thousands.
Earned Income Tax Credit Adjustments
The Earned Income Tax Credit (EITC) is also experiencing an increase. This credit, designed to assist low-to-moderate-income households, has a maximum value of $8,046 for families with three or more children, up from $7,830 in 2024.
The EITC can result in significant savings or even refunds, helping families reduce their tax bill and receive additional financial support.
Tax Brackets and Deductions in 2025
| Tax Rate | Income Range | Standard Deduction | EITC for 3+ Children | COLA Adjustment (%) |
|---|---|---|---|---|
| 10% | Up to $23,850 | $30,000 | $8,046 | 2.8% |
| 12% | $23,850 – $96,950 | – | – | – |
| 24% | $171,050 – $394,600 | – | – | – |
| 37% | Over $751,600 | – | – | – |
These details highlight the latest tax structure, enabling couples to better understand their tax obligations and make strategic financial decisions.
FAQs
Tax brackets for 2025 range from 10% on incomes up to $23,850 to 37% on incomes over $751,600.
The standard deduction for married couples filing jointly increases to $30,000, providing greater reductions in taxable income.
Bracket creep occurs when inflation pushes income into higher tax brackets without actual increases in purchasing power, increasing tax liability.
The EITC for families with three or more children rises to a maximum of $8,046, offering enhanced tax benefits for qualifying families.
Yes, all married couples filing jointly will see adjustments, but the exact impact depends on income, deductions, and credits.
