Please see the following changes that may affect your tax situation:
2025 Federal Tax Updates (for 2025 returns filed in 2026)
This page summarizes key federal tax changes that apply to tax year 2025 (income earned in 2025; returns filed in 2026). Most changes come from (1) annual IRS inflation adjustments and (2) federal law changes effective in 2025.
2025 Federal income tax brackets (ordinary income)
Married Filing Jointly (MFJ) / Qualifying Surviving Spouse (QSS)
10%: $0 – $23,850
12%: $23,851 – $96,950
22%: $96,951 – $206,700
24%: $206,701 – $394,600
32%: $394,601 – $501,050
35%: $501,051 – $751,600
37%: $751,601+
Head of Household (HOH)
10%: $0 – $17,000
12%: $17,001 – $64,850
22%: $64,851 – $103,350
24%: $103,351 – $197,300
32%: $197,301 – $250,500
35%: $250,501 – $626,350
37%: $626,351+
Single
10%: $0 – $11,925
12%: $11,926 – $48,475
22%: $48,476 – $103,350
24%: $103,351 – $197,300
32%: $197,301 – $250,525
35%: $250,526 – $626,350
37%: $626,351+
Married Filing Separately (MFS)
10%: $0 – $11,925
12%: $11,926 – $48,475
22%: $48,476 – $103,350
24%: $103,351 – $197,300
32%: $197,301 – $250,525
35%: $250,526 – $375,800
37%: $375,801+
Standard deduction (2025)
For 2025, the standard deduction amounts are:
$31,500 – Married Filing Jointly
$15,750 – Single and Married Filing Separately
$23,625 – Head of Household
SALT deduction cap (State & Local Taxes) – 2025
If you itemize deductions, you may deduct certain state and local taxes paid (generally state income tax or sales tax, plus real estate taxes and certain personal property taxes)—but the deduction is capped.
2025 SALT cap amounts
$40,000 maximum SALT deduction for most taxpayers
$20,000 maximum for Married Filing Separately (MFS)
High-income phase-down (2025)
For tax year 2025, the increased SALT cap is reduced for higher-income taxpayers:
The cap is reduced by 30% of the amount that Modified AGI exceeds:
$500,000 (most filers), or
$250,000 (MFS)
The cap will not be reduced below $10,000 ($5,000 if MFS).
Phase-down example (2025)
Example (MFJ): A couple has Modified AGI of $550,000.
MAGI exceeds $500,000 by $50,000
Phase-down = 30% × $50,000 = $15,000
2025 SALT cap = $40,000 − $15,000 = $25,000 So, even if they paid $40,000+ of SALT, their itemized SALT deduction would be capped at $25,000 for 2025.
Key additional 2025 changes (federal)
Child Tax Credit (CTC)
Federal law changes effective in 2025 include changes to the Child Tax Credit. Eligibility, amounts, and phase-outs depend on filing status and income.
Qualified Business Income (QBI / §199A)
Federal law changes effective in 2025 include changes to the Qualified Business Income (QBI) deduction for eligible pass-through business owners.
Alternative Minimum Tax (AMT)
Federal law changes effective in 2025 include changes affecting the AMT exemption and/or phaseout thresholds.
Tips and overtime provisions
Federal law changes effective in 2025 include new provisions commonly described as “no tax on tips” and “no tax on overtime” (eligibility rules and limits apply).
Energy and vehicle credits (timing matters in 2025)
Federal law changes effective in 2025 include modifications affecting certain clean energy and vehicle-related credits, with timing rules that can affect 2025 purchases.
Important note
This page is a general summary. Many items have income limits, phase-outs, and special definitions, and the correct result depends on your situation. The IRS maintains an overview page and guidance links for 2025 law changes.
