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.
