The IRS annually adjusts over 60 tax provisions for inflation to prevent “bracket creep,” where inflation, not income growth, pushes taxpayers into higher brackets or reduces deductions. Since 2018, the IRS has used the Chained Consumer Price Index (C-CPI) for more accurate adjustments. For tax year 2025, filed in 2026, tax parameters will rise by an average of 2.8%, ensuring fairness amid inflation.
Revenue Procedure 2024-40 PDF provides detailed information on adjustments and changes to more than 60 tax provisions that will impact taxpayers when they file their returns in 2026.
Federal Tax Rates and Brackets for 2025
The tax rates remain unchanged, but income thresholds have been adjusted for inflation to prevent “bracket creep.” Here’s how they break down for different filing statuses:
10% Tax Rate
- Single Filers: Up to $11,925
- Married Filing Jointly: Up to $23,850
- Head of Household: Up to $17,000
12% Tax Rate
- Single Filers: $11,925 to $48,475
- Married Filing Jointly: $23,850 to $96,950
- Head of Household: $17,000 to $64,850
22% Tax Rate
- Single Filers: $48,476 to $103,350
- Married Filing Jointly: $96,950 to $206,700
- Head of Household: $64,850 to $103,350
24% Tax Rate
- Single Filers: $103,351 to $197,300
- Married Filing Jointly: $206,700 to $394,600
- Head of Household: $103,350 to $197,300
32% Tax Rate:
- Single Filers: $197,300 to $250,525
- Married Filing Jointly: $394,600 to $501,050
- Head of Household: $197,300 to $250,500
35% Tax Rate:
- Single Filers: $250,525 to $626,350
- Married Filing Jointly: $501,050 to $751,600
- Head of Household: $250,501 to $626,350
37% Tax Rate:
- Single Filers: Over $626,350
- Married Filing Jointly: Over $751,600
- Head of Household: Over $626,350
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