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IRS Tax Inflation Adjustments for 2025

I have included the following information in my monthly newsletter each month since the beginning of 2025 and have decided to makes things more easily accessible for all.

You can come back to reference this as you prepare for tax season and plan for your 2025 taxes.

Standard deduction changes

  • $30,000 for married couples filing jointly - up by $800

  • $15,000 for single filers & married filing separately folks - up by $400.

  • $22,500 for heads of households - up by $600.

Marginal rates

  • 37% for incomes over $626,350 ($751,600 for married filing jointly)

  • 35% for incomes over $250,525 ($501,050 for married filing jointly)

  • 32% for incomes over $197,300 ($394,600 for married filing jointly)

  • 24% for incomes over $103,350 ($206,700 for married filing jointly)

  • 22% for incomes over $48,475 ($96,950 for married filing jointly)

  • 12% for incomes over $11,925 ($23,850 for married filing jointly)

  • 10% for incomes of $11,925 or less ($23,850 for married filing jointly)

IRA contribution changes

  • $23,500 for individuals contributing to a 401(k), 403(b), 457, & TSP  - up by $500

Other common benefit changes

  • $4,300 for self-only or $8,550 for family coverage - up by $150 for self-only & $250 for family

  • $3,300 for FSA - up by $100

Standard mileage rate

  • 70 cents for business miles - up by 3 cents

  • 21 cents for medical miles

  • 21 cents for moving miles for qualified active-duty members of the Armed Forces

  • 14 cents for charitable service miles

The contribution limit of $7,000 for Traditional or Roth IRA and $8,000 for folks 50 or over was not adjusted from 2024. For folks who contribute through their employers to an IRA and receive a company match, combined employee and employer contributions cannot exceed $70,000 - up by $1,000.

Source: https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025

Neda Eckhardt