IRS Unveils 2025 Tax Brackets with Modest Adjustments

The IRS has announced a 2.8% increase in tax bracket thresholds and standard deductions for 2025, reflecting a slowdown in inflation.

The 2025 tax brackets will see a 2.8% increase, the smallest adjustment in four years, due to easing inflation.
Standard deductions will rise to $15,000 for single filers and $30,000 for married couples filing jointly.
The Earned Income Tax Credit for families with three or more children will increase to $8,046.
Long-term capital gains will remain at 0% for individuals earning up to $48,350 and married couples up to $96,700.
The estate tax exemption will increase to $13.99 million, and the tax-free gift limit will rise to $19,000 per recipient.