Overview

• The IRS confirmed seven federal income tax rates from 10% to 37% with higher income thresholds, including the top 37% rate above $320,300 for single filers and $640,600 for joint filers.
• Standard deductions rise to $32,200 for married filing jointly, $24,150 for head of household, and $16,100 for single or married filing separately.
• The Earned Income Tax Credit increases, with a maximum of $8,231 for eligible taxpayers with three children.
• Benefit limits move up across programs, including a $340 monthly transit cap, a $3,400 flexible spending account limit, updated HSA deductible ranges, and a $132,900 foreign earned income exclusion.
• A temporary additional deduction of up to $6,000 is available to taxpayers aged 65 or older for 2025–2028, subject to AGI ceilings of $75,000 for single filers or $150,000 for joint filers.