IRS Releases Estimated 2025 Tax Brackets: What You Need to Know

 The Internal Revenue Service (IRS) has not yet officially announced the tax brackets for 2025. However, based on inflation adjustments, financial information services like Bloomberg Tax and Wolters Kluwer have released estimates.

What are Tax Brackets?

Tax brackets determine the rate at which you pay federal income tax. The higher your taxable income, the higher the tax bracket you fall into, and the higher the percentage of your income you pay in taxes.

Estimated 2025 Tax Brackets:

While subject to change, here are the estimated tax brackets for 2025 based on inflation adjustments:

• Single filers:
  • Up to $18,150: 10%
  • $18,151 to $90,750: 12%
  • $90,751 to $189,500: 22%
  • $189,501 to $510,250: 24%
  • Over $510,250: 37%
• Married filing jointly:
  • Up to $36,300: 10%
  • $36,301 to $181,500: 12%
  • $181,501 to $379,000: 22%
  • $379,001 to $647,750: 24%
  • Over $647,750: 37%
• Head of household:
  • Up to $27,300: 10%
  • $27,301 to $140,250: 12%
  • $140,251 to $215,000: 22%
  • $215,001 to $545,250: 24%
  • Over $545,250: 37%

What This Means for You:

These are estimated brackets, and the official announcement from the IRS might differ slightly. However, they can give you a general idea of how much tax you might owe in 2025.

Stay tuned for updates:

The IRS is expected to officially announce the 2025 tax brackets in late December 2024 or early January 2025. Keep an eye on the IRS website or consult with a tax professional for the most accurate information.

Additional Resources:

• IRS Tax Brackets and Standard Deductions: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024
• How to Choose the Right Tax Professional: https://www.irs.gov/tax-professionals/choosing-a-tax-professional   

Remember: This information is not a substitute for professional tax advice. Always consult with a qualified tax professional to determine your specific tax liability.