The IRS has announced new income limits for its seven tax brackets for 2025, with thresholds increased by about 2.7% to adjust for inflation. This follows a 5.4% increase in 2024 and a historically large 7% bump in 2023 due to inflation.

While reaching a top one percent income is becoming more challenging given the threshold keeps increasing, at least those whose incomes aren’t keeping pace with inflation can expect some tax relief.

Let’s dive into the 2025 income tax brackets and standard deduction amounts. Then we’ll explore the new ideal income targets for single filers, married filers, and retirees. For the nearly 50% of working Americans who pay income taxes, these brackets often represent our largest ongoing expense.

2025 Income Tax Brackets

For 2025, the IRS has increased the income threshold for each tax bracket by about 2.7% across all filing categories, compared to 2024.

The seven

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