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IRS Unveils 2025 Tax Brackets, Raises Standard Deduction to $30,000

Oct 22, 2024, 04:24 PM

The Internal Revenue Service (IRS) has announced new federal income tax brackets and standard deductions for the tax year 2025. The adjustments, reflecting smaller inflation increases compared to previous years, will allow taxpayers to shield more of their income from taxation. The standard deduction has increased to $30,000 for joint filers and $15,000 for single filers. Taxpayers may see lower federal income taxes due to these bracket shifts. Capital gains tax brackets have been raised, with single filers able to earn up to $48,350 and married couples up to $96,700 in taxable income while paying 0% on long-term capital gains. Additionally, the estate and gift tax exemption amounts have been increased, and alternative minimum tax exemption amounts have been adjusted.