2025 Tax Rates and other updates
- ront75
- Dec 10, 2024
- 2 min read
Updated: Feb 4
The IRS publishes its annual increase in tax brackets, retirement plan contributions, and other information for tax planning purposes. Below are some of the limits to consider in planning.
Elective deferrals for employer-sponsored plans will increase to $23,500 in 2025, but the catch-up contribution limit for employees aged 50 and over will remain at $7,500.*
In 2025, the limitation for defined contribution plans under section 415(c)(1)(A) will increase from $69,000 to $70,000.*
The annual contribution limit to an IRA remains at $7,000, and the IRA catch-up contribution limit for individuals aged 50 and over remains unchanged at $1,000.*
The annual Qualified Charitable Donation (QCD) limit increased to $108,000 in 2025.**
2025 Income tax brackets
Single Taxpayers (other than surviving spouses and heads of households)***
Taxable income is: | Tax Bracket |
$0 but not over $11,925 | 10% |
Over $11,925 but not over $48,475 | 12% |
Over $48,475 but not over $103,350 | 22% |
Over $103,350 but not over $197,300 | 24% |
Over $197,300 but not over $250,525 | 32% |
Over $250,525 but not over $626,350 $57,231 plus 35% of | 35% |
Over $626,350 | 37% |
Married Individuals Filing Joint Returns and Surviving***
Taxable income is: | Tax Bracket |
Not over $23,850 | 10% |
Over $23,850 but not over $96,950 | 12% |
Over $96,950 but not over $206,700 | 22% |
Over $206,700 but not over $394,600 | 24% |
Over $394,600 but not over $501,050 | 32% |
Over $501,050 but not over $751,600 | 35% |
Over $751,600 | 37% |
Heads of Households***
Taxable income is: | Tax Bracket |
Not over $17,000 | 10% |
Over $17,000 but not over $64,850 | 12% |
Over $64,850 but not over $103,350 | 22% |
Over $103,350 but not over $197,300 | 24% |
Over $197,300 but not over $250,500 | 32% |
Over $250,500 but not over $626,350 | 35% |
Over $626,350 | 37% |
Married Individuals Filing Separate Returns***
Taxable income is: | Tax Bracket |
Not over $11,925 | 10% |
Over $11,925 but not over $48,475 | 12% |
Over $48,475 but not over $103,350 | 22% |
Over $103,350 but not over $197,300 | 24% |
Over $197,300 but not over $250,525 | 32% |
Over $250,525 but not over $375,800 | 35% |
Over $375,800 | 37% |
2025 standard deduction amounts***
Filing Status | Standard Deduction |
Married Individuals Filing Joint Returns and Surviving Spouses | $30,000 |
Heads of Households | $22,500 |
Unmarried Individuals (other than Surviving Spouses and Heads of Households) | $15,000 |
Married Individuals Filing Separate Returns | $15,000 |
Start planning now for 2025. Use the Schedule appointment above to schedule a free consultation.
*Source IRS.gov IRS Notice 2024-80, Notice 2024-80, 2025 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living IRS.gov
**Source IRS.gov IR-20245-289, Give more, tax-free: Eligible IRA owners can donate up to $105,000 to charity in 2024 | Internal Revenue Service
Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors and Synergy Wealth Management are separate entities.
The information in this material is not intended as tax or legal advice. Synergy Wealth Management does not advice tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
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