The IRS has released its annual inflation adjusted tax numbers for 2025. Below we have highlighted some of the most relevant updates for tax brackets, retirement contributions, and estate and gifting limits, as compared to 2024 figures.
| Individual Income Taxes |
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| Income Tax Brackets – Single Tax Filer |
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| 2025 | 2024 | |
| 10% | Up to $11,925 | Up to $11,600 |
| 12% | $11,926 to $48,475 | $11,601 to $47,150 |
| 22% | $48,476 to $103,350 | $47,151 to $100,525 |
| 24% | $103,351 to $197,300 | $100,526 to $191,950 |
| 32% | $197,301 to $250,525 | $191,951 to $243,725 |
| 35% | $250,526 to $626,350 | $243,726 to $609,350 |
| 37% | Over $626,350 | Over $609,350 |
| Standard Deduction | $15,000 | $14,600 |
| Long-Term Capital Gains | ||
| 0% | Up to $48,350 | Up to $47,025 |
| 15% | $48,351 to $533,400 | $47,026 to $518,900 |
| 20% | Over $533,400 | Over $518,900 |
| Income Tax Brackets – Married Filing Jointly | ||
| 2025 | 2024 | |
| 10% | Up to $23,850 | Up to $23,200 |
| 12% | $23,851 to $96,950 | $23,201 to $94,300 |
| 22% | $96,951 to $206,700 | $94,301 to $201,050 |
| 24% | $206,701 to $394,600 | $201,051 to $389,900 |
| 32% | $394,601 to $501,050 | $383,901 to $487,450 |
| 35% | $501,051 to $751,600 | $487,451 to $731,200 |
| 37% | Over $751,600 | Over $731,200 |
| Standard Deduction | $30,000 | $29,200 |
| Long-Term Capital Gains | ||
| 0% | Up to $96,700 | Up to $94,050 |
| 15% | $96,701 to $600,050 | $94,051 to $583,750 |
| 20% | Over $600,050 | Over $583,750 |
| Retirement Plan Contribution Limits | ||
| 2025 | 2024 | |
| 401(k), 403(b), 457 plans | $23,500 | $23,000 |
| – 50+ catch up contribution | $7,500 | $7,500 |
| – Ages 60-63 “super catch-up” contribution | $11,250 | – |
| IRA – Traditional & Roth | $7,000 | $7,000 |
| – 50+ catch up contribution | $1,000 | $1,000 |
| SIMPLE IRA | $16,500 | $16,000 |
| – 50+ catch up contribution | $3,500 | $3,500 |
| – Ages 60-63 “super catch-up” contribution | $5,250 | – |
| Defined Contribution Plan | $70,000 | $69,000 |
| Gift & Estate Tax | ||
| 2025 | 2024 | |
| Annual Gift Exclusion | $19,000 | $18,000 |
| Federal Estate Tax & Gift Tax Exemption | $13,990,000 | $13,610,000 |
| Maximum Transfer Tax Rate | 40% | 40% |
| Annual Gift Exclusion to Non-U.S. Citizen Spouse | $190,000 | $185,000 |
In addition to the tax figures above, the Net Investment Income Tax (NIIT) applies at a rate of 3.8% to certain net investment income of individuals, estates, and trusts that have income above the statutory threshold amounts. The threshold amounts are $200,000 for single tax-payers and $250,000 for married filing jointly.
While many of the brackets moved favorably in 2025, it should also be noted that the amount of income subject to Social Security payroll taxes increased from $168,600 to $176,100.
If you have any questions, please feel free to contact us or schedule a conversation.
Author:
Thomas Burleigh, CFP®, CTFA
Wealth Manager
Disclosure:
This article does not contain any legal or tax advice. You should always consult with your attorney, accountant, or other professional advisors before changing or implementing any tax, investment, or estate planning strategy. This is not an offer or a solicitation to buy or sell securities. This may not be construed as investment advice and does not give investment recommendations. Any opinion included in this article constitutes the judgment of CMH Wealth Management, LLC as of the date of this report and are subject to change without notice.
Additional information about CMH Wealth Management is also available on the SEC’s website at www.adviserinfo.sec.gov. Past performance is not a guarantee of future results.
Photo credit: Nataliya Vaitkevich
