New Year, New You! Or, maybe not. Not everyone likes the idea that a new year requires a resolution for change. But, the IRS does, and one thing you can count on is a change to your taxes. Maybe the quote should be, “New Year, New Rules”.
Below are changes that affect most taxpayers.
Standard Deduction
Filing Status | 2024 Amount | 2025 Amount |
|---|---|---|
Single |
$14,600 |
$15,000 |
Married Filing Jointly |
$29,200 |
$30,000 |
Head of Household |
$15,500 |
$22,500 |
Individual Tax Rates
Rate | Single Income Range | Married Filing Jointly Income Range |
|---|---|---|
10% |
$0 – 11,925 |
$0 – 23,850 |
12% |
$11,926 – 48,475 |
$23,851 – 96,950 |
22% |
$48,476 – 103,350 |
$96,651 – 206,700 |
24% |
$103,351 – 197,300 |
$206,701 – 394,600 |
32% |
$197,301 – 250,525 |
$394,601 – 501,050 |
35% |
$250,526 – 626,350 |
$501,051 – 751,600 |
37% |
$626,351+ |
$751,601+ |
Standard Mileage Rates
- Business miles: 70 cents per mile (up from .67 in 2024)
- Medical mile: 21 cents per mile (no change)
- Charity miles: 14 cents per mile (no change)
Retirement Contribution Limits
- 401(k) – $23,500 + $7,500 catch-up contribution for taxpayers age 50-59
- NEW – $11,250 catch-up contribution for taxpayers age 60-63
- IRA – $7,000 + $1,000 catch-up contribution for taxpayers over age 50
Child and Dependent Tax Credit
- Child under age 17 – $2,000
- Child age 17 or older and other dependents – $500
Gift and Estate Tax
The amount of a gift that can be excluded from gift tax for 2025 is $19,000 per individual, up $1,000 from 2024.
The estate tax exclusion is $13,990,000 for 2025, up from $13,610,000 in 2024.
