Taxpayers in the US will get a lot of help from the Internal Revenue Service (IRS) in 2025 because tax brackets will have changed.
These changes, which are part of a plan to account for inflation and the rising cost of living, will let many people keep more of their yearly income without having to pay more in attorney’s fees.
One important thing the IRS does every year to keep up with changes in the economy is change the tax brackets. In 2025, the IRS raised the income limits for each tax bracket.
This means that people can make more money before they have to move up to the next tax bracket. This change is meant to make the tax burden more fair by letting people’s incomes and wages change without making them pay more in taxes right away.
For many people, this change means they can make more money, which is especially important right now when inflation is still making things less affordable.
We will talk about how these changes might affect people with different amounts of income, as well as ways to get the most out of the new IRS tax rules.
IRS Tax Bracket Changes for 2025
The IRS changes tax brackets every year to account for changes in the economy, especially inflation. These tax brackets show how much tax a person has to pay on their taxable income.
Each bracket is for a certain range of income. The income limits for each of these tax brackets have gone up since 2025. This means that people can make more money before they have to move up to a higher tax bracket.
Here is a list of the most important changes that were made to the tax brackets for individual returns from the old limits:
- 10% bracket: for income up to $11,000, adjusted from $10,275.
- 12% bracket: for income from $11,001 to $44,725, previously from $10,276 to $41,775.
- 22% bracket: for income from $44,726 to $95,375, formerly from $41,776 to $89,075.
- 24% bracket: for income from $95,376 to $182,100, previously up to $170,050.
- 32% bracket: for income from $182,101 to $231,250, instead of the previous $215,950.
- 35% bracket: for income from $231,251 to $578,125, previously from $539,900.
- 37% bracket: for income above $578,125, adjusted from $539,900.
People will benefit from these changes, but married couples filing jointly will also benefit because the limits in each bracket will go up.
Because the tax brackets have been changed, many workers and families will not have to jump to a higher tax rate right away, even if their wages go up.
Take advantage of the new tax brackets
Taking advantage of the changes to the attorney tax brackets requires planning ahead to get the most out of these changes. Making the new IRS tax system work for taxpayers is possible in a number of ways. One of the best ways is to remember these important points.
- Review salary and additional income: With the new brackets, it can be a good opportunity to negotiate salary increases without worrying about automatically jumping into a higher tax bracket. In many cases, the increased bracket limit allows for an increase that is still in the same tax bracket.
- Take advantage of retirement plan contributions: Contributing to retirement plans such as a 401(k) or IRA reduces taxable income, which can help stay in a lower tax bracket. This is particularly helpful for those near the limits of each bracket.
- Evaluate the standard deduction and other tax benefits: The standard deduction has also increased, which reduces the amount of income on which taxes are paid. Considering available deductions and tax credits may be an additional strategy to reduce the tax burden, especially in a year when the brackets have been expanded.
The IRS wants these changes to bring the tax system into line with the current economy, in which the cost of living has gone up a lot.
If taxpayers think about these things, they will be able to better plan their money and keep more of the money they earn without having to pay more in taxes.