IRS Releases 2025 Tax Inflation Adjustments

Here are some of the highlights. 

The standard deduction for single filers increases to $15,000 from $14,600. 

For married filing jointly the standard deduction increases to $30,000 from $29,200. 

Tax bracket thresholds increased about 2.8%. 

The 37% bracket starts at $626,351 ($609,351 in 2024) for single filers and $751,601 ($731,201 in 2024) for married filing jointly. 

Remember that unless Congress extends the 2017 Tax Cuts and Jobs Act (TCJA), it will sunset at the end of 2025. 

The 37% bracket will automatically increase to the 2017 rate of 39.6%. 

Other brackets will also increase. 

For 2025, an individual can gift up to $19,000 per person without filing a gift tax return. 

An individual can shelter up to $13.99 million without any estate tax in 2025 up from $13.61 in 2024. 

The 0% capital gains tax rate in 2025 for single filers is up to $48,350 in taxable income and $96,700 for married filing jointly.