Each year, the IRS adjusts federal income tax brackets for inflation, and 2025 is no exception. While the seven tax rates themselves haven’t changed (they remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%), the income ranges for each bracket have increased slightly.
Understanding how tax brackets work is key to planning ahead and avoiding surprises when you file. Here’s what you need to know about how your income is taxed in 2025.
How Tax Brackets Work
Federal income tax in the U.S. is progressive, meaning you don’t pay one flat rate on your entire income. Instead, your income is divided into chunks, and each chunk is taxed at a different rate.
For example, if your taxable income is $50,000 as a single filer, part of your income is taxed at 10%, the next part at 12%, and the remainder at 22%. This means your marginal tax rate (the highest rate applied to your income) might be 22%, but your effective tax rate (what you actually pay overall) is lower.
2025 Federal Income Tax Brackets
Below are the taxable income ranges for each filing status in 2025.
Single Filers:
- 10% on income up to $11,925
- 12% on $11,925 up to $48,475
- 22% on $48,475 up to $103,350
- 24% on $103,350 up to $197,300
- 32% on $197,300 up to $250,525
- 35% on $250,525 up to $626,350
- 37% on $626,350 and above
Married Filing Jointly:
- 10% on income up to $23,850
- 12% on $23,850 up to $96,950
- 22% on $96,950 up to $206,700
- 24% on $206,700 up to $394,600
- 32% on $394,600 up to $501,050
- 35% on $501,050 up to $751,600
- 37% on $751,600 and above
Heads of Household:
- 10% on income up to $17,000
- 12% on $17,000 up to $64,850
- 22% on $64,850 up to $103,350
- 24% on $103,350 up to $197,300
- 32% on $197,300 up to $250,500
- 35% on $250,500 up to $626,350
- 37% on $626,350 and above
Why This Matters for You
Knowing your marginal tax bracket can help you make smarter financial decisions throughout the year—like how much to set aside for taxes, whether to contribute more to retirement accounts, or if you’ll benefit from additional deductions.
Keeping an eye on where you fall within these brackets can also help with quarterly tax planning if you’re self-employed, and can guide conversations with your tax professional about ways to lower your taxable income.
The more you understand how your income is taxed, the easier it becomes to plan ahead, reduce surprises, and take advantage of smart tax strategies that work in your favor.
