Your Take-Home Pay May Get a Boost, Thanks to 2025 Tax Bracket Changes. Here’s Why
Now, your payday could take a bump this year IRS updated income tax coverage Higher standard deductions are in effect. Depending on your income level, this means your take-home pay could go up this year, or your tax bill could go down next year.
Even if your salary doesn’t change, you may be in a lower tax bracket in 2025, thereby lowering your tax rate. As a result, you may see a slight increase in the amount of money you take home each pay period. In some cases, a higher standard deduction can also help lower taxes or increase income.
It is normal for the IRS to make tax law changes every year inflation. This helps prevent”tax bracket creep” – That’s when inflation pushes you into a higher tax bracket No real increase in revenue.
These new tax changes will take place on January 1st. Here’s everything you need to know about this year’s income tax coverage, increases in the standard deduction and how tax changes will affect your money.
Read more: Will we see more tax relief next year? Who benefits under Trump’s tax plan
How tax law changes affect your paycheck
When the IRS increases federal income tax brackets, you may be in a different tax bracket than you were the year before, even if your income stays the same.
For example, if you made $48,000 last year, you would fall into the 22% tax rate. However, if your income stays at the same level throughout 2025, you’ll drop into the 12% bracket. This means you’ll receive less federal taxes and less money will be withdrawn from your paycheck.
If you make more in 2025 than you did in 2024, the amount your salary increases will determine where you fall. You can still be stuck in a lower tax rate or the same tax rate. In some cases, your tax rate and rate may increase.
2025 Income Tax Brackets
Your federal income tax bracket helps determine your tax for a given tax year, not including the standard deduction or any Itemized tax deductions.
Income Tax Brackets for 2025 Single File
| taxable income | federal tax rate |
|---|---|
| $11,925 or less | 10% |
| $11,926 to $48,475 | $1,192.50 plus 12% on income over $11,925 |
| $48,476 to $103,350 | $5,578.50 plus 22% of income over $48,475 |
| $103,351 to $197,300 | $17,651 plus 24% on income over $103,350 |
| $197,301 to $250,525 | $40,199 plus 32% of income over $197,300 |
| $250,526 to $626,350 | $57,231 plus 35% of income over $250,525 |
| $626,351 or more | $609,350 $188,769.75 plus 37% of income over $626,350 |
2025 income tax brackets for married filers, filing jointly
| taxable income | federal tax rate |
|---|---|
| $23,850 or less | 10% |
| $23,851 to $96,950 | $2,385 plus 12% on income over $23,850 |
| $96,951 to $206,700 | $11,157 plus 22% of income over $96,950 |
| $206,701 to $394,600 | $35,302 plus 24% of income over $206,700 |
| $394,601 to $501,050 | $80,398 plus 32% of income over $394,600 |
| $501,051 to $751,600 | $114,462 plus 35% of income over $501,050 |
| $751,601 or more | $202,154.50 plus 37% of income over $751,600 |
2025 income tax totals for household filers
| taxable income | federal tax rate |
|---|---|
| $17,000 or less | 10% |
| $17,001 to $64,850 | $1,700 plus 12% on income over $17,000 |
| $64,851 to $103,350 | $7,442 plus 22% of income over $64,850 |
| $103,351 to $197,300 | $15,912 plus 24% on income over $103,350 |
| $197,301 to $250,500 | $38,460 plus 32% of income over $197,300 |
| $250,501 to $626,350 | $55,484 plus 35% on income over $250,500 |
| $626,351 or more | $187,031.50 plus 37% of income over $626,350 |
2025 Standard Deduction
For 2025, the standard single-file tax deduction has been increased to $15,000, an increase of $400 from 2024. For those married and filing jointly, the standard deduction has been raised to $30,000, an increase of $800 from the previous year.
IRS standard deduction
| Application status | 2024 | 2025 |
|---|---|---|
| Single or married, submit separately | $14,600 | $15,000 |
| Married, filing jointly | $29,200 | $30,000 |
| Head of household | $21,900 | $22,500 |
Source of all charts: IRS (PDF).
most taxpayers Simple tax return Claim the standard deduction to reduce their taxable income. If you only receive wages from your employer as a W-2 employee, the standard deduction is usually the best way to maximize your tax refund. if you are self employed Or there are specific deductions you want to claim, and you will itemize the deductions.
Other 2025 tax changes that may help you
There are other tax changes coming next year that could cost you more money in your paycheck. If you collect Social Security, you will receive 2.5% cost of living adjustment for 2025. The earned income tax credit also increases to $8,046 for filers with three or more qualifying children.
There are also increases in the foreign earned income exclusion, estate tax credit exclusion, annual exclusion for gifts and adoption credit.
