The IRS has released tax inflation adjustments for the year 2025. You can find the full details at the IRS website here. Below, we will break down the tax brackets for individuals and married couples for 2025.
Marginal Rates for Individuals and Married Couples
- 37% (top rate) for income over $626,350 ($751,600 for married couples filing jointly).
- 35% for incomes over $250,525 ($501,050 for married couples filing jointly).
- 32% for incomes over $197,300 ($394,600 for married couples filing jointly).
- 24% for incomes over $103,350 ($206,700 for married couples filing jointly).
- 22% for incomes over $48,475 ($96,950 for married couples filing jointly).
- 12% for incomes over $11,925 ($23,850 for married couples filing jointly).
- 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).
The above rates are progressive, which means you are taxed 10% for the first $11,925 you earn, and then 12% for the next $36,550 you earn, and so on.
Example Calculation
Imani is single, and she makes $75,000/year. Her total tax bill is $11,414. Below is a breakdown of her total taxes.
$11,925 is taxed at 10% = $1,192.50
$36,550 is taxed at 12% = $4,386
$26,525 is taxed at 22% = $5,835.50
Many believe that Imani’s bill would be $75,000 taxed at a 22% rate, leaving her bill at $16,500, but that would be incorrect. Instead, the progressive tax rate means she only pays a portion of her income at that rate anytime she stays below a bracket.