As we enter 2025, it is important to stay updated on information, whether you’re a business owner, an employee, planning for retirement or a retiree. Below are some frequently used schedules and tables to keep in mind as you plan your year, helping you identify opportunities that may reduce your tax burden, as well as offer opportunities that may increase your savings for the future. Staying abreast of changes is crucial for effective financial planning. Please be sure to consult with your tax advisor, attorney, or financial professional for personalized advice regarding your specific situation.
Income Tax Brackets
Single | Married, Filing Jointly | Married, Filing Separately | Head of Households | Tax Rates |
$ 0 – $ 11,925 | $ 0 – $ 23,850 | $ 0 – $ 11,925 | $ 0 – $ 17,000 | 10.0% |
$ 11,926 – $ 48,475 | $ 23,851 – $ 96,950 | $ 11,926 – $ 48,475 | $ 17,001 – $ 64,850 | 12.0% |
$ 48,476 – $ 103,350 | $ 96,951 – $ 206,700 | $ 48,476 – $ 103,350 | $ 64,851 – $ 103,350 | 22.0% |
$ 103,351 – $ 197,300 | $ 206,701 – $ 394,600 | $ 103,351 – $ 197,300 | $ 103,351 – $ 197,300 | 24.0% |
$ 197,301 – $ 250,525 | $ 394,601 – $ 501,050 | $ 197,301 – $ 250,525 | $ 197,301 – $ 250,500 | 32.0% |
$ 250,526 – $ 626,350 | $ 501,051 – $ 751,600 | $ 250,526 – $ 375,800 | $ 250,501 – $ 626,350 | 35.0% |
Over $ 626,350 | Over $ 751,600 | Over $ 375,800 | Over $ 626,350 | 37.0% |
Long-Term Capital Gains
The table below shows the long-term capital gains tax rate based on taxable income for your filing status. Long-Term capital gains are profits from selling assets that you have held for over a year. Note – there is a 28% capital gains tax on selling collectibles.
Single | Married, Filing Separately | Married, Filing Jointly | Head of Households | Tax Rates |
$48,350 | $48,350 | $96,700 | $64,750 | 0.0% |
$533, 400 | $300,000 | $600,050 | $566,700 | 15.0% |
Over $ 533,401 | Over $ 300,001 | Over $ 600,051 | Over $ 566,701 | 20.0% |
Retirement Contribution Limits
Reviewing the annual contribution limits for IRA and Qualified Retirement Plan accounts can help you maximize your retirement savings. Note – These limits may not apply for individuals covered by a workplace retirement plan.
IRA and Roth IRA Contribution Limit | |
Under Age 50 | $7,000 |
Aged 50 and over | $8,000 |
IRA Contributions – Traditional IRA contributions may offer you a taxable income deduction, as well as allow your money to grow tax deferred. Roth IRA contributions are made with after-tax dollars and allow your funds to grow tax-free.
Qualified Plan Contributions | |||
Age in 2025 | Employee Deferral | Catchup | 2025 Contribution Limit |
Aged 49 and under | $23,500 | $0 | $23,500 |
Aged 50-59 | $23,500 | $7,500 | $31,000 |
Aged 60-63 | $23,500 | $11,250 | $34,750 |
Aged 64 and over | $23,500 | $7,500 | $31,000 |
Qualified Plan Contributions – The table above references the qualified plan contribution limits for accounts such as 401(k), 403(b) and 457 plans. These contributions may offer you a taxable income deduction, as well as allow your money to grow tax deferred. You may also want to review if your plan offers any employer match contributions or profit-sharing contributions.
Estate and Gift Tax
The IRS typically updates Estate and Gift Tax exclusions each year.
Estate and Gift Tax | |
Estate Tax Exemption | $13,990,000 |
Annual Gift Tax Exclusion | $19,000 |
Estate Tax Exemption – Each individual has a separate lifetime exemption that can be used during their lifetime or at death without incurring federal estate taxes. A married couple can combine this credit for a total exemption of $27.98 million. Note – This amount is currently set to expire and revert to around $5 million (adjusted for inflation) starting January 1, 2026.
Annual Gift Tax Exclusion – Each person can give the annual gift tax exclusion ($19,000 for 2025) to as many persons as they want without having to file a gift tax return. This allows you to gift money out of your estate without it going against your lifetime exemption.
Standard Deduction
A standard deduction is a specific dollar amount offered by the IRS that you can subtract from your total income, therefore reducing the amount of tax you pay. You may be eligible for itemized deductions above the standard deduction limit based upon donations to charities, home mortgage interest, property taxes and a list of other items.
Standard Deduction | |
Single | $15,000 |
Married, Filing Separately | $15,000 |
Married, Filing Jointly | $30,000 |
Head of Households | $22,500 |
Staying abreast of current tax laws is essential for effective tax planning and financial management. These numbers can impact your charitable giving, retirement contributions and both standard and estate tax savings. As you navigate through 2025, consult with your financial and tax advisors to determine what is appropriate for your circumstances.
Cheers to a financially prosperous 2025!
This content is for informational purposes only and does not constitute financial, tax, or legal advice. Please consult with your tax advisor, attorney, or financial professional for personalized advice regarding your specific situation. This is not an all-inclusive list of all the tax tables but the most commonly used ones. Tax laws and rates are subject to change.