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Tax Brackets for 2025
Wondering about 2025 tax brackets and how they’ll affect your tax? In this article, we’ll break down how to determine the tax bracket you’re in, the new bracket thresholds for 2025, tips to reduce your taxable income, and common tax credits you may qualify for.
Key Takeaways
Key Takeaways
Your tax bracket depends on your taxable income and filing status, which affects how much of your income is taxed at each rate.
Contributing to retirement accounts, HSAs, or FSAs can reduce taxable income and may lower your tax bracket.
You can reduce your taxable income by claiming either the standard deduction or itemized deductions, depending on which lowers your tax more.
Common itemized deductions include mortgage interest, property taxes, state/local taxes, charitable donations, medical expenses, and some disaster losses.
Tax credits provide greater savings than deductions by directly reducing tax, with refundable credits potentially increasing your refund.
A few common tax credits you may qualify for include the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), and the American Opportunity Tax Credit (AOTC).
A Marq Neasman Tax Pro can guide you on deductions, credits, and strategies to maximize your tax refund or minimize taxes due.
What Tax Bracket am I in?
What Tax Bracket am I in?
The tax bracket you’re in is determined by two things: your taxable income and your filing status. Your taxable income is the portion of your income subject to tax. The U.S. has a progressive tax system, which means that the more you make, the higher your tax rate will be.
However, it’s important to keep in mind that the highest rate you pay, which is called marginal tax rate, only applies to the income in that specific tax bracket. For example, if you’re a single filer in 2025, and you have taxable income of $60,000 a year, you’ll be in the 22% tax bracket. But you’ll be taxed at 22% on only $11,524, which is the portion of your income over the threshold of $48,476. You’ll be taxed at 12% for your income between $11,926 and $48,475, and 10% on income $11,926 and below.
To find your effective tax rate, which is the rate your overall taxable income will actually be taxed at, you’ll need to sum up the tax on each portion of your taxable income. Then you divide that by your total taxable income. In the above example, your effective rate would be 13.52%.
Consult a Marq Neasman Tax Pro
Consult a Marq Neasman Tax Pro
Whether you have questions or concerns about 2025 tax brackets, you want assistance lowering your taxable income, need guidance on whether to take the standard deduction or itemize your deductions, or you just want to make sure you get every dollar you deserve, work with a Marq Neasman Tax Pro.
You don’t have to wait until it’s time to file to get help, either. We’re open all year, and ready to help you make a tax plan to get your biggest refund when you file your 2025 tax return!
2025 Tax Brackets
2025 Tax Brackets
Single Filer
Single Filer
Taxable income
10% | $0 - $11,925
12% | $11,926 - $48,475
22% | $48,476 - $103,350
24% | $103,351 - $197,300
32% | $197,301 - $250,525
35% | $250,526 - $626,350
37% | $626,351 and up
Filing Jointly
Filing Jointly
Taxable income
10% | $0 - $23,850
12% | $23,851 - $96,950
22% | $96,951 - $206,700
24% | $206,701 - $394,600
32% | $394,601 - $501,050
35% | $501,051 to $751,600
37% | $751,601 and up
Filing Separately
Filing Separately
Taxable income
10% | $0 - $11,925
12% | $11,926 - $48,475
22% | $48,476 - $103,350
24% | $103,351 - $197,300
32% | $197,301 - $250,525
35% | $250,526 - $375,800
37% | $375,800 and up
Head of House
Head of House
Taxable income
10% | $0 - $17,000
12% | $17,001 - $64,850
22% | $64,851 - $103,350
24% | $103,351 - $197,300
32% | $197,301 - $250,500
35% | $250,501 - $626,350
37% | $626,351 and up
Common Tax Credits You May Qualify For
Common Tax Credits You May Qualify For
Tax credits do not reduce your taxable income; however, they provide an even bigger tax benefit than deductions by directly reducing your tax. Here are some common tax credits you may qualify for in 2025:
Earned Income Tax Credit (EITC)
Earned Income Tax Credit (EITC)
The EITC is for low- to moderate-income workers and families and offers a maximum credit in 2025 from $649 (if you have no children) to $8,046 (if you have three or more children). It’s also refundable, which means you’ll get a refund for any credit leftover after reducing your tax to zero.
Child Tax Credit (CTC)
Child Tax Credit (CTC)
The CTC provides up to $2,000 per child under 17, with up to $1,700 refundable. The amount you qualify for depends on your income and phases out for higher earners.
American Opportunity Tax Credit (AOTC)
American Opportunity Tax Credit (AOTC)
The AOTC supports college expenses with up to $2,500 per eligible student for the first four years, including up to $1,000 refundable. Eligible students must be enrolled at least half-time in a degree program, or a program leading to another recognized credential.
Lifetime Learning Credit (LLC)
Lifetime Learning Credit (LLC)
The LLC covers education expenses for college or career development and is worth up to $2,000 per return. It’s non-refundable and, unlike the AOTC, has no limit on the number of years you can take it.
Child and Dependent Care Credit (Daycare Credit)
Child and Dependent Care Credit (Daycare Credit)
The Daycare Credit offers up to 35% of $3,000 in childcare expenses for one dependent or $6,000 for two or more dependents. This is a non-refundable credit, which means that it can lower your tax to zero, but you won’t get the leftover credit as a refund.
Premium Tax Credit (PTC)
Premium Tax Credit (PTC)
The PTC is for health insurance purchased through the Health Insurance Marketplace to make it more affordable. The credit amount is based on your income and the size of your family. It’s refundable, which means that it may help you get a bigger refund in addition to lowering your tax.
Saver’s Credit
Saver’s Credit
The Saver’s Credit rewards your retirement contributions with a credit up to 10%, 20%, or 50% on the first $2,000, depending on your income. The maximum credit is $1,000 for single filers and $2,000 for couples filing jointly. This non-refundable credit helps lower taxes and encourages retirement savings.
How to Reduce Taxable Income
How to Reduce Taxable Income
There are many ways you can reduce your taxable income and, therefore, potentially lower your tax bracket and, therefore, your tax rate.
Contribute to retirement accounts
Contribute to retirement accounts
If you’re employed and have a 401(k), a 403(b), or a traditional IRA, or you’re self-employed and have a SEP-IRA or SIMPLE IRA, you can lower your taxable income by making pre-tax contributions to your retirement account(s).
Keep in mind that the IRS sets contribution limits to retirement accounts each year, so consult with a Tax Pro to make sure you’re making the most of your retirement plan without exceeding the limit.
Contribute to a Health Savings Account (HSA)
Contribute to a Health Savings Account (HSA)
If you have an HSA, contributing the maximum amount possible each year is a great way to lower your taxable income. Contributions are made with pre-tax dollars, plus the funds grow tax-free and you won’t have to pay tax when you use the funds for qualified medical expenses, either.
Contribute to a Flexible Spending Account (FSA)
Contribute to a Flexible Spending Account (FSA)
If you have an FSA, you can lower your taxable income by contributing to it with pre-tax dollars. You can use the funds tax-free for certain medical and dental expenses.
Take advantage of tax deductions
Take advantage of tax deductions
Tax deductions lower your adjusted gross income (AGI, which is your income with some adjustments by a specific amount), which also lowers your taxable income. You can either choose to take the standard deduction or itemize your deductions, but you cannot do both. A Marq Neasman Tax Pro can help you determine which option will result in the least tax or biggest refund.
Standard deduction by filing status 2025
Each year, the standard deduction amount is set by the IRS. The amount you can take is determined by your filing status. Here’s a breakdown of the standard deductions amounts for 2025 for each filing status.
Filing status
Standard deduction amount
Single | $15,000
Married filing jointly | $30,000
Married filing separately | $15,000
Head of household | $22,500
Itemized deductions 2025
If you choose to itemize your deductions, make sure that you keep careful records of your expenses, including receipts. Here are some of the most common itemized deductions.
Mortgage interest: The interest you pay on loans for your main home or a secondary property.
Property taxes: State and local property taxes.
State and local income taxes or sales taxes: Either the amount you paid in state and local income taxes or your total sales tax amount.
Charitable donations: Contributions to qualified charities, which can include cash donations and certain types of non-cash gifts.
Medical and dental costs: Out-of-pocket medical and dental expenses that exceed 7.5% of your AGI.
Personal property taxes: Taxes paid on personal assets like cars and other vehicles.
Casualty and theft losses: Losses from federally declared disasters that were not covered by insurance.
Consult a Marq Neasman Tax Pro
Consult a Marq Neasman Tax Pro
Whether you have questions or concerns about 2025 tax brackets, you want assistance lowering your taxable income, need guidance on whether to take the standard deduction or itemize your deductions, or you just want to make sure you get every dollar you deserve, work with a Marq Neasman Tax Pro.
You don’t have to wait until it’s time to file to get help, either. We’re open all year, and ready to help you make a tax plan to get your biggest refund when you file your 2025 tax return!
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