IRS Tax Brackets and Standard Deduction Guide

Del Sol CPA
Jan 20
3 min read

Updated: Oct 19

Planning your taxes for the upcoming years? Take a sneak peek at the latest standard deductions and tax brackets for the tax years 2024 and 2025.

Reminder:

Tax Year 2024: File in April 2025 (or October 2025 with an extension)
Tax Year 2025: File in April 2026 (or October 2026 with an extension)

How does the standard deduction work? US Tax Brackets and Standard Deductions

The standard deduction is a valuable tool that can reduce your taxable income when filing your tax return. Updated annually for inflation, the standard deduction varies based on your filing status. However, it's important to note that certain taxpayers cannot claim the standard deduction if they choose to itemize their deductions instead.

Example:

If you earned $99,600 in 2024 and file as a single taxpayer, taking the standard deduction of $14,600 will reduce your taxable income to $85,000.

Standard deductions

Filing Status	2024 Standard Deduction	2025 Standard Deduction
Single/ Married Filing Separately	$14,600	$15,000
Married Filing Jointly/ Qualifying Surviving Spouse	$29,200	$30,000
Head of Household	$21,900	$22,500
Dependent	$1,300	$1,350
65+ Age or Blindness Married/Surviving Spouse	$1,550	$1,600
65+ Age or Blindness Single/Head-of-household	$1,950	$2,000

Source: IRS

Key points you need to know before calculating your tax liability:

1. Tax brackets determine the tax rate you pay on your highest dollar of taxable income.

2. This doesn't mean the entire income gets taxed at that rate.

3. Each bracket has its own tax rate, applied only to the income within that range.

2024 tax brackets

Tax rate	Single Filers	Married Filing Separately	Married Filing Jointly
37%	$609,351 or more	$365,601 or more	$731,201 or more
35%	$243,726 to $609,350	$243,726 to $365,600	$487,451 to $731,200
32%	$191,951 to $243,725	$191,951 to $243,725	$383,901 to $487,450
24%	$100,526 to $191,950	$100,526 to $191,950	$201,051 to $383,900
22%	$47,151 to $100,525	$47,151 to $100,525	$94,301 to $201,050
12%	$11,601 to $47,150	$11,601 to $47,150	$23,201 to $94,300
10%	$0 to $11,600	$0 to $11,600	$0 to $23,200

Example Scenario for 2024

After taking the deduction, your taxable income is $85,000 as a single filer, falling under the 22% bracket. However, you won't pay it on your entire income. Here's how the calculation breaks down:

10% on the first $11,600 = $1,160
12% on amounts between $11,601 and $47,150 = ($47,150 - $11,601 = $35,549) × 12% = $4,265.88
22% on amounts between $47,151 and $85,000 = ($85,000 - $47,151 = $37,849) × 22% = $8,326.78
Total Tax Liability= $1,160 (10%) + $4,265.88 (12%) + $8,326.78 (22%) = $13,752.66

2025 tax brackets

Tax rate	Single Filers	Married Filing Separately	Married Filing Jointly
37%	$626,351 or more	$375,801 or more	$751,601 or more
35%	$250,526 to $626,350	$250,526 to $375,800	$501,051 to $751,600
32%	$197,301 to $250,525	$197,301 to $250,525	$394,601 to $501,050
24%	$103,351 to $197,300	$103,351 to $197,300	$206,701 to $394,600
22%	$48,476 to $103,350	$48,476 to $103,350	$96,951 to $206,700
12%	$11,926 to $48,475	$11,926 to $48,475	$23,851 to $96,950
10%	$0 to 11,925	$0 to $11,925	$0 to $23,850

Staying informed about the latest rules is essential for effective tax planning. As always, if you need help with your tax filing, don't hesitate to contact us. Our team of knowledgeable Certified Public Accountants (CPAs) is ready to provide expert guidance.

US Tax Brackets and Standard Deductions