IRS unveils new 2025 tax brackets

The IRS has announced its new federal income tax brackets for 2025. Here's how you'll be impacted.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we're watching on

00:03the street today. Interest rate jitters, political positioning, and a dose of third-quarter corporate

00:08results offset each other to keep stocks pretty close to the flat line on Tuesday. Investors have

00:14been scaling back expectations for a big interest rate cut by the Federal Reserve in November

00:20after several upbeat economic reports. On the docket for Wednesday, striking Boeing workers

00:26will vote on whether to accept the latest contract. It's also a big day for earnings.

00:30Coca-Cola, AT&T, Tesla, and T-Mobile are just some of the names due to report.

00:37In other news, the IRS announced an inflation-adjusted shakeup for the 2025 tax year,

00:43which should prevent your taxes from going up when you file in 2026. The standard deduction

00:48in 2025 will increase for both married and single taxpayers. Married couples filing jointly will be

00:55able to deduct $30,000 in 2025, up from $29,200 in 2024. Single filers will see the standard

01:04deduction rise to $15,000 from $14,600. That's not all. Taxable income levels are adjusted to

01:12reflect the rate of inflation. The lowest tax rate of 10 percent will now be for those with a

01:18taxable income of $11,295 or less for single filers and $23,850 or less for married couples

01:28filing jointly. At the top end, single filers making at least $626,531 and married couples

01:38making at least $751,601 pay the highest rate of 37 percent. Everyone else pays a tax rate

01:47of somewhere between 12 and 35 percent. These tax rates are temporary by way of President Donald

01:53Trump's 2017 tax cuts. If Congress does not renew them, then rates will stay low for the lowest

02:00income but go back up to anywhere from 15 percent to 39.6 percent for everyone else.

02:08Estate and gift tax exemptions, eligibility for the child tax credit and income levels on

02:13long-term capital gains have all been tweaked for 2025 as well. That'll do it for your daily

02:20briefing from the New York Stock Exchange. I'm Conway Gittins with The Street.