The Internal Revenue Service detailed the increases in its annual inflation adjustments announced Tuesday. For single taxpayers and married individuals, the standard deduction is rising to $15,000.
While taxpayers will again see higher standard deductions for 2025, the increases announced Tuesday are less than those seen in recent years, indicating a trend of moderated adjustments.
Income thresholds for all seven federal tax bracket levels were also revised upward. The top tax rate will cover incomes greater than $626,350 for single taxpayers in tax year 2025.
Despite a drop in overall inflation levels, core prices remain elevated, driven by rising costs in various sectors such as medical care and clothing.
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