The 2025 tax brackets have seven marginal rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 22% bracket starts at $48,475 of taxable income. For married filing jointly, it starts at $96,950. These thresholds are set by IRS Rev. Proc. 2024-40 and apply to taxable income after the standard deduction or itemized deductions are subtracted.
- Seven federal tax rates for 2025: 10%, 12%, 22%, 24%, 32%, 35%, 37%. Rates apply to taxable income, not gross income.
- Brackets are marginal. You pay each rate only on the income within that tier, not on your total income.
- Standard deduction for 2025: $15,750 single, $31,500 MFJ, $23,625 HOH. Updated by the OBBBA.
- OBBBA above-the-line deductions (tips, overtime, auto loan interest) reduce taxable income before brackets are applied.
- Long-term capital gains use separate rate tables: 0%, 15%, or 20% depending on income.
- Bracket thresholds adjust annually for inflation. The 2026 figures will differ from 2025.
2025 Federal Tax Brackets — Single Filers
These brackets apply to single filers and married filing separately. Taxable income is your adjusted gross income minus the standard deduction (or itemized deductions) and any above-the-line deductions.
| Tax Rate | Taxable Income Range | Tax Owed on This Tier |
|---|---|---|
| 10% | $0 – $11,925 | 10% of taxable income |
| 12% | $11,925 – $48,475 | $1,192.50 + 12% over $11,925 |
| 22% | $48,475 – $103,350 | $5,578.50 + 22% over $48,475 |
| 24% | $103,350 – $197,300 | $17,651.50 + 24% over $103,350 |
| 32% | $197,300 – $250,525 | $40,199.50 + 32% over $197,300 |
| 35% | $250,525 – $626,350 | $57,231.50 + 35% over $250,525 |
| 37% | Over $626,350 | $188,769.75 + 37% over $626,350 |
Source: IRS Rev. Proc. 2024-40. MFS brackets are the same thresholds as single.
2025 Federal Tax Brackets — Married Filing Jointly
MFJ brackets are roughly double the single brackets due to the "marriage bonus" built into the current rate structure. The top 37% bracket begins at $751,600 for joint filers.
| Tax Rate | Taxable Income Range | Tax Owed on This Tier |
|---|---|---|
| 10% | $0 – $23,850 | 10% of taxable income |
| 12% | $23,850 – $96,950 | $2,385 + 12% over $23,850 |
| 22% | $96,950 – $206,700 | $11,157 + 22% over $96,950 |
| 24% | $206,700 – $394,600 | $35,302 + 24% over $206,700 |
| 32% | $394,600 – $501,050 | $80,398 + 32% over $394,600 |
| 35% | $501,050 – $751,600 | $114,462 + 35% over $501,050 |
| 37% | Over $751,600 | $202,154.50 + 37% over $751,600 |
Source: IRS Rev. Proc. 2024-40. Also applies to qualifying surviving spouses.
2025 Federal Tax Brackets — Head of Household
The head of household status provides wider lower brackets than single, reflecting the higher costs of supporting a household with dependents.
| Tax Rate | Taxable Income Range | Tax Owed on This Tier |
|---|---|---|
| 10% | $0 – $17,000 | 10% of taxable income |
| 12% | $17,000 – $64,850 | $1,700 + 12% over $17,000 |
| 22% | $64,850 – $103,350 | $7,442 + 22% over $64,850 |
| 24% | $103,350 – $197,300 | $15,912 + 24% over $103,350 |
| 32% | $197,300 – $250,500 | $38,460 + 32% over $197,300 |
| 35% | $250,500 – $626,350 | $55,484 + 35% over $250,500 |
| 37% | Over $626,350 | $187,031.50 + 37% over $626,350 |
Source: IRS Rev. Proc. 2024-40.
2025 Standard Deduction — All Filing Statuses
The standard deduction is subtracted from your adjusted gross income to arrive at taxable income before applying the brackets. The OBBBA (Pub. L. 119-21, signed July 4, 2025) increased the 2025 standard deduction above the pre-OBBBA inflation-adjusted amounts.
| Filing Status | 2025 Standard Deduction | Prior Law (Pre-OBBBA) |
|---|---|---|
| Single | $15,750 | $15,000 |
| Married Filing Jointly | $31,500 | $30,000 |
| Head of Household | $23,625 | $22,500 |
| Married Filing Separately | $15,750 | $15,000 |
The additional standard deduction for taxpayers age 65+ or blind is $2,000 per person (single/HOH) or $1,600 per person (MFJ/MFS) for 2025, on top of the base amounts above.
How Tax Brackets Actually Work: Marginal Rates Explained
Tax brackets are marginal, not flat. You pay each rate only on the income within that tier. Crossing into a higher bracket does not mean your entire income is taxed at the higher rate.
Example: A single filer with $70,000 of taxable income in 2025.
| Bracket | Income in This Tier | Tax |
|---|---|---|
| 10% | $0 – $11,925 ($11,925) | $1,192.50 |
| 12% | $11,925 – $48,475 ($36,550) | $4,386.00 |
| 22% | $48,475 – $70,000 ($21,525) | $4,735.50 |
| Total income tax | $10,314.00 | |
This filer is in the 22% marginal bracket but their effective (average) tax rate is $10,314 / $70,000 = 14.7%. The marginal rate is the rate on the last dollar earned. The effective rate is the actual percentage of total income paid in tax.
Self-employed filers: the same 2025 ordinary-income brackets apply to your net self-employment income, but you also owe self-employment tax (Social Security + Medicare, 15.3% combined) on top of income tax. Use our 1099 tax calculator to estimate total federal liability on freelance or contractor earnings, or our self-employment tax calculator for a pure Schedule SE breakdown.
2025 Long-Term Capital Gains Tax Rates
Long-term capital gains (on assets held more than one year) are taxed at preferential rates separate from ordinary income brackets. Short-term capital gains (assets held one year or less) are taxed as ordinary income using the brackets above.
| Rate | Single — Taxable Income | MFJ — Taxable Income | HOH — Taxable Income |
|---|---|---|---|
| 0% | $0 – $48,350 | $0 – $96,700 | $0 – $64,750 |
| 15% | $48,350 – $533,400 | $96,700 – $600,050 | $64,750 – $566,700 |
| 20% | Over $533,400 | Over $600,050 | Over $566,700 |
Net Investment Income Tax (NIIT) of 3.8% applies on investment income for taxpayers with MAGI over $200,000 (single) or $250,000 (MFJ), in addition to the capital gains rate. The OBBBA did not change NIIT thresholds.
Source: IRS Rev. Proc. 2024-40. MFS capital gains thresholds are half the MFJ amounts.
How OBBBA Deductions Interact with Your Tax Bracket
The One Big Beautiful Bill Act created three above-the-line income deductions that reduce your adjusted gross income before the standard deduction is applied. A lower AGI produces lower taxable income, which can move you into a lower bracket or reduce your tax within your current bracket.
| OBBBA Deduction | Max Deduction (Single/HOH) | Max Deduction (MFJ) | IRC Section |
|---|---|---|---|
| No Tax on Tips | $25,000 | $25,000 per spouse | §224 |
| No Tax on Overtime (premium only) | $12,500 | $25,000 | §225 |
| Auto Loan Interest | $10,000 | $10,000 | §163(h)(4) |
All three are claimed on Schedule 1-A (Form 1040) and reduce AGI regardless of whether you itemize. They apply for tax years 2025 through 2028.
For a complete breakdown of all six OBBBA provisions and how to stack them, see the OBBBA Tax Changes Guide.
2025 AMT Exemptions and Other Key Thresholds
| Item | Single | MFJ |
|---|---|---|
| AMT Exemption | $88,100 | $137,000 |
| AMT Exemption Phase-Out Begins | $626,350 | $1,252,700 |
| Earned Income Credit — Max (3+ children) | $7,830 | |
| 401(k) Employee Contribution Limit | $23,500 | |
| IRA Contribution Limit | $7,000 ($8,000 if age 50+) | |
| HSA Limit — Self-only coverage | $4,300 | |
| HSA Limit — Family coverage | $8,550 | |
| Annual Gift Tax Exclusion | $19,000 per recipient | |
Source: IRS Rev. Proc. 2024-40. These figures apply to tax year 2025. EITC, retirement, and HSA limits are subject to separate statutory rules and may be updated separately.
Practitioner Insight
At LMN Tax Inc., the most frequent bracket-related confusion we see is clients who assume their entire income is taxed at their top marginal rate. A single filer earning $90,000 in taxable income does not pay 22% on all $90,000. They pay 10% on the first $11,925, 12% on the next $36,550, and 22% only on the remaining $41,525. Separately, clients eligible for OBBBA deductions frequently underestimate how much those deductions reduce their effective bracket exposure. A $12,500 overtime deduction for a single filer in the 22% bracket reduces tax by $2,750 before any other adjustment. The bracket math is the same; the deduction simply reduces the taxable income that reaches those upper tiers.
Real-World Scenario
Angela, single filer, W-2 employee, TY 2025: Angela earns $95,000 in W-2 wages. She also received $8,200 in qualifying overtime pay during 2025 and contributes $7,000 to a traditional IRA. Her gross income is $103,200.
Deductions: $7,000 traditional IRA contribution (above-the-line) + $8,200 overtime deduction under IRC §225 = $15,200 above-the-line total. Adjusted Gross Income: $103,200 minus $15,200 = $88,000. She takes the standard deduction of $15,750, giving her a taxable income of $72,250.
Tax calculation on $72,250 (single): 10% on $11,925 = $1,193; 12% on $36,550 = $4,386; 22% on $23,775 = $5,231. Total federal income tax: $10,810. Effective rate: 11.4% on taxable income; 10.5% on gross income. Without the overtime deduction, her taxable income would have been $80,450 and her total tax approximately $12,614. The §225 deduction saves her approximately $1,804 in federal income tax.
When Bracket Assumptions Do Not Apply
- AMT override: Taxpayers subject to Alternative Minimum Tax pay a flat 26% or 28% rate on AMT income rather than the regular bracket schedule. The standard deduction and most itemized deductions are disallowed under AMT. AMT can apply even if your regular marginal rate is lower.
- Net Investment Income Surtax: The 3.8% NIIT applies to investment income above $200,000 (single) or $250,000 (MFJ) in MAGI. It is calculated separately from the regular bracket system and can push the effective tax rate on some investment income above the nominal 37% top rate.
- Social Security and Medicare Taxes on wages: The 7.65% employee FICA and 1.45% Medicare (no SS cap) apply to wages before the regular income tax calculation. They are not part of the bracket structure but affect total tax burden significantly for most W-2 earners.
- Qualified dividends and long-term capital gains: These are taxed at preferential rates (0%, 15%, or 20%) based on separate LTCG income thresholds, not the regular bracket thresholds. A taxpayer in the 22% ordinary income bracket may pay 0% or 15% on long-term gains depending on their total taxable income.
- State income tax: The federal bracket schedule has no effect on state income tax. Most states have separate rate schedules. Some states have flat rates; a few have no income tax. A federal 22% bracket does not mean a 22% total effective rate when state tax is included.
Frequently Asked Questions
Next Step
To see how your specific income, deductions, and filing status translate into actual federal tax liability, use the 1099 Tax Calculator or the Overtime Tax Calculator if you have qualifying overtime. If you are self-employed, use the Self-Employment Tax Calculator to account for the SE tax layer above the regular bracket calculation. For quarterly payment planning, see the Quarterly Tax Calculator.