Federal Tax Brackets for 2025
Federal income tax brackets show how much you owe on each part of your "taxable income," which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
- 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly).
- 35% for incomes over $250,525 ($501,050 for married couples filing jointly).
- 32% for incomes over $197,300 ($394,600 for married couples filing jointly).
- 24% for incomes over $103,350 ($206,700 for married couples filing jointly).
- 22% for incomes over $48,475 ($96,950 for married couples filing jointly).
- 12% for incomes over $11,925 ($23,850 for married couples filing jointly).
- 10% for incomes of $11,925 or less ($23,850 for married couples filing jointly).
2025 Social Security Cost of Living Adjustment
What numbers may change in 2025 for the government programs from which our clients receive benefits?
It starts with the Social Security Administration, which announces its cost of living adjustment (COLA). Other government programs then adjust their numbers, often using the same COLA as Social Security.
Since inflation hit a 40 year high in 2022, the COLA rate has dropped, from 8.7% in 2023, to 3.2% for 2024. Inflation has continued to decline this year, as has the COLA. In 2025 Social Security payments will increase by 2.5%. This bump up will be first be seen in January, 2025 monthly payments.