What are the updated IRS tax brackets for 2025? Find the information here.

Understanding Tax Brackets for the Upcoming Tax Season

As tax season draws near, many Americans begin to focus on how their income will be taxed under the current tax brackets.

Each year, the Internal Revenue Service (IRS) updates federal tax brackets, which determine how different portions of your income are taxed under the progressive tax system. Knowing how these brackets work is essential for estimating your tax liability.

Under this system, your income is divided into segments, with each segment taxed at a progressively higher rate. The lowest portion of your income is taxed at the lowest rate, and as your income increases, higher portions are taxed at higher rates. However, only the income within each bracket is taxed at that bracket’s rate, not your entire income.

Tax brackets are adjusted annually to account for inflation. For the 2025 tax year—which you’ll report on your 2026 return—the income thresholds for each bracket have increased slightly compared to 2024.

How Tax Brackets Function

Consider an example: If you are single and your taxable income in 2025 is $75,000, the first $11,925 is taxed at 10%. The next portion, from $11,926 to $48,475, is taxed at 12%. Any income above $48,475 is taxed at 22%. This tiered approach ensures that only the income within each range is taxed at its corresponding rate.

There are a total of seven federal tax brackets, each with its own rate.

The IRS bases these brackets on inflation data. If your income rises in line with inflation, your tax rate may remain similar to the previous year. However, if your earnings increase faster than inflation, you might move into a higher bracket. Conversely, if your income lags behind inflation, you could fall into a lower bracket.

The Highest Federal Tax Rate

The top marginal tax rate for individuals is 37%. For 2025, this rate applies to single filers with taxable income exceeding $626,350. For married couples filing jointly, the 37% rate starts at $751,601.

2025 Federal Tax Brackets

Below are the federal income tax brackets for the 2025 tax year, which will be used when filing your 2026 tax return:

Single Filers

• 37% for taxable income over $626,350
• 35% for income over $205,525
• 32% for income over $197,300
• 24% for income over $103,350
• 22% for income over $48,475
• 12% for income over $11,925
• 10% for income up to $11,925

Married Filing Jointly

• 37% for taxable income above $751,600
• 35% for income over $501,050
• 32% for income over $394,600
• 24% for income over $206,700
• 22% for income over $96,950
• 12% for income over $23,850
• 10% for income up to $23,850

Tax Brackets for Heads of Household

The IRS generally considers a head of household to be someone who pays more than half the costs of maintaining a home, often a parent. Heads of household benefit from higher income thresholds for each tax bracket, reflecting their additional financial responsibilities.

2025 Head of Household Brackets

• 37% for taxable income above $626,350
• 35% for income over $250,500
• 32% for income over $197,300
• 24% for income over $103,350
• 22% for income over $64,850
• 12% for income over $17,000
• 10% for income up to $17,000

Comparing 2026 and 2025 Tax Brackets

The IRS has already published the tax brackets for 2026, which will be used for returns filed in 2027.

2026 Tax Brackets for Single Filers

• 37% for income over $640,600
• 35% for income over $256,225
• 32% for income over $201,775
• 24% for income over $105,700
• 22% for income over $50,400
• 12% for income over $12,400
• 10% for income up to $12,400

2026 Tax Brackets for Married Filing Jointly

• 37% for income above $768,700
• 35% for income over $512,450
• 32% for income over $403,550
• 24% for income over $211,400
• 22% for income over $100,800
• 12% for income over $24,800
• 10% for income up to $24,800

Strategies to Reduce Your Tax Bracket

There are several approaches to potentially lower your tax bracket. For example, married couples may benefit from filing jointly, which could place them in a lower bracket. In some cases, filing separately might be more advantageous, depending on your financial situation.

Contributing to a 401(k) plan is another effective way to reduce your taxable income. If you do not have access to a 401(k) through your employer, making contributions to a traditional Individual Retirement Account (IRA) may also help you qualify for a tax deduction, which can further lower your taxable income and potentially your tax bracket.

Daniel de Visé reports on personal finance for USA Today.

This article was originally published by USA TODAY: Tax brackets 2025: How to know which federal tax bracket I'm in