Ordinary Income Tax Brackets & Rates
As a general rule, standard income tax brackets apply to most types of income unless a specific exception exists. Ordinary income typically consists of earnings such as wages and salaries, self-employment and business income, rental income, interest, regular dividends, and capital gains from assets held for one year or less.
| Tax Rate | Single | Married, Filing Jointly (and Surviving Spouse) | Married, Filing Separately | Head of Household |
| 0% | Standard or Itemized Deduction Amount |
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $12,400 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $12,401 – $50,400 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $50,401 – $105,700 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,775 | $105,701 – $201,750 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,776 – $256,225 | $201,751 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,226 – $384,350 | $256,201 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $384,350 | Over $640,600 |
Long-Term Capital Gains Rates & Qualified Dividends Tax Brackets & Rates
Long-term capital gains tax rates apply to investments held for more than one year, as well as to qualified dividends. Certain gains subject to Section 1250 recapture, such as those from depreciated real estate, are taxed at a maximum rate of 25%. Gains from collectibles, including items like artwork or coins, may be taxed at rates as high as 28%.
| Tax Rate*Taxable Income | Single | Married, Filing Jointly (and Surviving Spouse) | Married, Filing Separately | Head of Household |
| 0% | $0 – $49,450 | $0 – $98,900 | $0 – $49,450 | $0 – $66,200 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 | $49,451 – $306,850 | $66,201 – $579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $306,850 | Over $579,600 |
3.8% Net Investment Income Tax (NIIT)
This is an additional tax that applies to certain types of investment income when your income exceeds the thresholds below.
| Filing Status | Single or Head of Household | Married, Filing Jointly (and Surviving Spouse) | Married, Filing Separately |
| Adjusted Gross Income (AGI) Limit when 3.8% NIIT Takes Effect | $200,000 | $250,000 | $125,000 |
Kiddie Tax
The kiddie tax is a U.S. tax rule that taxes a child’s unearned income (like dividends or interest) above a certain limit at the parents’ tax rate instead of the child’s lower rate. It applies to children under 18 and to full‑time students ages 18–23 who don’t provide more than half of their own support.
| 1. First $1,350 of unearned income is not taxed because it’s covered by the kiddie tax standard deduction. |
| 2. Next $1,350 of unearned income is taxed at the child’s marginal tax rate. |
| 3. Anything above $2,700 is taxed at the parents’ marginal tax rate. |
Tax Deductions & Credits
Tax deductions and tax credits both help reduce what you owe, but they work in different ways. Deductions lower your taxable income, meaning you’re taxed on a smaller amount overall. Credits, on the other hand, directly reduce your tax bill dollar for dollar and can sometimes even increase your refund. Together, they can help taxpayers keep more of their money by lowering their total tax burden.
Standard Deduction
| Filing Status | Deduction Limit |
| Single or Married Filing Separately | $16,100 |
Married Filing Jointly
(and Surviving Spouse) | $32,200 |
| Head of Household | $24,150 |
Additional Standard Deduction
| Filing Status | Deduction Limit |
| Blind, or age 65 or older | Add $ 1,650 per person |
| Blind, or age 65 or older, must be unmarried and not a surviving spouse | Add $2,050 |
Tax Credits
| Credit | Notes | Maximum Amount |
| Child Tax Credit | Child is under age 17; phaseout starts at $400,000 for joint filers, $200,000 for single filers (MAGI) | $2,200 |
| Lifetime Learning Credit | Qualified education expenses; phaseout starts at $160,000 for joint filers, $80,000 for all other filers (MAGI) | $2,000 |
| American Opportunity Credit | Qualified education expenses; phaseout starts at $160,000 for joint filers, $80,000 for all other filers (MAGI) | $2,500 |
Other Tax Deductions
| Deduction | Notes | Amount |
| Charitable Donations | Non-itemizers can now take a donation deduction for cash gifts | Up to $1,000 for single filers or $2,000 for joint filers |
| Temporary Senior Deduction | For tax years 2025 to 2028, age 65 or older; phaseout starts at $75,000 for single filers, $150,000 for joint filers (MAGI) | Up to $6,000 for single filers; $12,000 for joint filers |
| Student Loan Interest Deduction | Interest on qualified education loans; phaseout starts at $175,000 for joint filers, $85,000 for all other filers (MAGI) | $2,500 |
| Health Savings Account (HSA) | Must have coverage under a qualifying high-deductible health plan (age 55 or over can contribute an extra $1,000) | Up to $4,400 for self, Up to $8,750 for family |
| Tip Income Deduction | For tax years 2025 to 2028; phaseout starts at $150,000 for single filers or $300,000 for joint filers (MAGI) | Up to $25,000 |
| Overtime Income Deduction | For tax years 2025 to 2028; phaseout starts at $150,000 for single filers or $300,000 for joint filers (MAGI) | Up to $12,500 for single filers, $25,000 for joint filers |
| Auto Loan Interest Deduction | For tax years 2025 to 2028; phaseout starts at $100,000 for single filers or $200,000 for joint filers (MAGI) *Brand new cars, for personal use, final assembly must occur in USA. | Up to $10,000 |
Itemized Deduction Limits
Beginning in 2026, high income taxpayers in the 37% bracket will see their itemized deductions reduced under a new IRS formula that cuts deductions by the lesser of 2/37 of total itemized deductions or 2/37 of the income above the 37% bracket threshold. For 2026, that bracket begins at $640,600 for single filers and $768,700 for married couples filing jointly.
*Beginning in 2026, charitable giving becomes more restricted. Itemized charitable deductions will be subject to a 0.5% of AGI floor, and even high‑income taxpayers will have their charitable deductions capped at 35% of the value of the gift, even if they fall in the 37% bracket.
| Deduction | Limit |
| Medical and dental expenses | 7.5% of AGI |
| For tax years 2025 to 2029, taxes you paid (state, local, property, sales, etc.), phaseout starts at $505,000 | $40,400, if over phase out amount reverts to $10,000 |
| Mortgage interest and points: | |
| Mortgage on or after 12/16/2017 | $750,000 |
| Mortgage before 12/16/2017 | $1,000,000 |
| Deduction | Limit |
| Charitable donations | Various limitations apply, see Pub 526* |
| New floor on donations that must be surpassed before taking a deduction | 0.5% of AGI |
| Overall limit | 50% of AGI |
| Cash donations | 60% of AGI |
| Appreciated assets held long term | 30% of AGI |
Retirement Plan Contributions
Employer-Sponsored Plans
| Type | Limit |
| Overall limit for employer-sponsored defined contribution plans (does not include 457(b) plans) | $72,000 |
| 401(k), Roth 401(k), 403(b), 457(b) plans; employee elective deferral limit | $24,500 |
| Catch-up contribution limit for age 50 and over for 401(k) and Roth 401(k) (special catch-up limits may also apply to 403(b) and 457(b) plans) | $8,000 age 50 to 59 and age 64 or older, $11,250 age 60 to 63 |
| SIMPLE IRA and SIMPLE 401(k) plans; employee elective deferral limit | $17,000 |
| Catch-up contribution limit for age 50 and over for SIMPLE IRA plans | $4,000 age 50 to 59 and age 64 or older, $5,250 age 60 to 63 |
| SEP IRA plans: only employer contributions are allowed | Lesser of $72,000 or 25% of wages (20% for owners) |
| Catch-up contribution limit for age 50 and over for SEP IRA plans | Not allowed |
Traditional IRAs & Roth IRAs
| Type | Limit |
| Traditional IRA | $7,500 |
| Catch-up contribution for age 50 and over | $1,100 |
| Phaseout for those covered by an employer-sponsored plan (MAGI) |
| Single | $81,000 to $91,000 |
| Married filing separately | $0 to $10,000 |
| Married filing jointly | $129,000 to $149,000 |
| Married filing jointly, you are not covered but your spouse is | $242,000 to $252,000 |
| Roth IRA | $7,500 |
| Catch-up contribution for age 50 and over | $1,100 |
| Roth IRA income phaseout (MAGI) |
| Single | $153,000 to $168,000 |
| Married filing jointly | $242,000 to $252,000 |
Trust, Estate & Gift Tax Brackets & Rates
Trust & Estate Ordinary Income
| Tax Rates | Taxable Income |
| 0% | Standard or Itemized Deduction Amount |
| 10% | $0 – $3,300 |
| 24% | $3,331 – $11,700 |
| 35% | $11,701 – $16,000 |
| 37% | Above $16,000 |
Annual & Lifetime Gifting Limit
| Type | Limit |
| Maximum estate & gift tax rate | 40% |
| Annual gift tax exclusion | $19,000 |
| Unified gift & estate tax exemption (Note: This amount also covers the generation-skipping tax) | $15,000,000
per person |
| Annual exclusion for gifts to noncitizen spouse | $194,000 |
Social Security Limits
Social Security Rules & Limits
| Type | Limit |
| Social Security wage base | $184,500 |
| FICA tax rate for employee | 7.65% |
| SECA tax rate for self- employed | 15.3% |
| Social Security earnings limits prior to full retirement age (FRA) | |
| Younger than FRA | $24,480 |
| The year you reach FRA | $65,160 |
| Social Security benefits cost-of-living adjustment | 2.8% |
| Maximum possible benefits at FRA | $4,152 |
| Estimated average monthly benefit | $2,071 |
Taxation of Social Security Benefits
Social Security benefits may be taxable depending on your combined income, with up to 85% becoming taxable once you exceed long‑standing IRS income thresholds.
| Single, head of household, & widower combined income of | Taxable Portion |
| $25,000 or less | 0% |
| $25,001 and $34,000 | Up to 50% |
| Over $34,000 | Up to 85% |
| Married filing jointly combined income of | Taxable Portion |
| $32,000 or less | 0% |
| $32,001 and $44,000 | Up to 50% |
| Over $44,000 | Up to 85% |
Social Security Full Retirement Age
| Year of Birth | Social Security FRA |
| 1943-54 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
Medicare
Premiums & Costs
| Monthly Premium |
| Part A for those with <30 quarters of coverage | $565 |
| Part A for those with 30-39 quarters | $311 |
| Part B | $202.90 |
| Part A |
| First 60 days (patient pays a deductible) | $1,736 |
| Next 30 days (patient pays per day) | $434 |
| Additional 60 lifetime reserve days (patient pay per day) | $868 |
| After all lifetime reserve days are used, patient pays all costs. |
| Part B |
| Deductible | $283 |
| Coinsurance | 20% |
| Part D (Prescription Drug Plan) |
| Deductible | $615 |
| 25% coinsurance on next | $2,100 |
| Out-of-pocket threshold | $2,100 |
| Beneficiary then pays coinsurance amount for additional covered expenses. |
| Medicare Part B & D Income-Related Monthly Adjustment Amount (IRMAA) |
| You Pay | If Your 2024 MAGI Was |
| Premium | Part D Surcharge | Single | Married |
| $202.90 | Your Plan premium + | $109,000 or less | $218,000 or less |
| $284.10 | $14.50 | $109,001 to $137,000 | $218,001 to $274,000 |
| $405.80 | $37.50 | $137,001 to $171,000 | $274,001 to $342,000 |
| $527.50 | $60.40 | $171,001 to $205,000 | $342,001 to $410,000 |
| $649.20 | $83.30 | $205,001 to $499,999 | $410,001 to $749,999 |
| $689.90 | $91.00 | Above $500,000 | Above $750,000 |
This content is for informational purposes only and does not constitute tax, legal or financial advice. The data is based on sources believed to be reliable, but its accuracy cannot be guaranteed. Tax laws and regulations are complex and subject to change. Please consult with your tax advisor, attorney, or financial professional for personalized advice regarding your specific situation.
