Federal/IRS Tax Guide for 2025
Overview
The federal income tax system uses a progressive tax structure with 7 tax brackets, ranging from 10% to 37%. This means higher portions of your income are taxed at higher rates as your income increases. Long-term capital gains (assets held for more than one year) are taxed at preferential rates of 0%, 15%, or 20%, depending on your income level. Short-term capital gains are taxed as ordinary income.
The standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly, which reduces your taxable income.
In addition to income tax, employees pay 6.2% in Social Security tax (on wages up to $176,100) and 1.45% in Medicare tax on all wages. High earners pay an additional 0.9% Medicare tax on wages above $200,001 for single filers and $250,001 for married filers.
Various tax credits are available to reduce your tax liability, including the Child Tax Credit (up to $2,200 per child), Earned Income Tax Credit, and education credits.
Income Tax Rates
Single Filers
| Income Range | Tax Rate |
|---|---|
| Up to $11,925 | 10% |
| $11,926 - $48,475 | 12% |
| $48,476 - $103,350 | 22% |
| $103,351 - $197,300 | 24% |
| $197,301 - $250,525 | 32% |
| $250,526 - $626,350 | 35% |
| $626,351+ | 37% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| Up to $23,850 | 10% |
| $23,851 - $96,950 | 12% |
| $96,951 - $206,700 | 22% |
| $206,701 - $394,600 | 24% |
| $394,601 - $501,050 | 32% |
| $501,051 - $751,600 | 35% |
| $751,601+ | 37% |
Married Filing Separately
| Income Range | Tax Rate |
|---|---|
| Up to $11,925 | 10% |
| $11,926 - $48,475 | 12% |
| $48,476 - $103,350 | 22% |
| $103,351 - $197,300 | 24% |
| $197,301 - $250,525 | 32% |
| $250,526 - $375,800 | 35% |
| $375,801+ | 37% |
Head of Household
| Income Range | Tax Rate |
|---|---|
| Up to $17,000 | 10% |
| $17,001 - $64,850 | 12% |
| $64,851 - $103,350 | 22% |
| $103,351 - $197,300 | 24% |
| $197,301 - $250,500 | 32% |
| $250,501 - $626,350 | 35% |
| $626,351+ | 37% |
Capital Gains Tax
Single Filers
| Income Range | Tax Rate |
|---|---|
| Up to $48,350 | 0% |
| $48,351 - $533,400 | 15% |
| $533,401+ | 20% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| Up to $96,700 | 0% |
| $96,701 - $600,050 | 15% |
| $600,051+ | 20% |
Married Filing Separately
| Income Range | Tax Rate |
|---|---|
| Up to $48,350 | 0% |
| $48,351 - $300,000 | 15% |
| $300,001+ | 20% |
Head of Household
| Income Range | Tax Rate |
|---|---|
| Up to $64,750 | 0% |
| $64,751 - $566,700 | 15% |
| $566,701+ | 20% |
Medicare
Employee
Single Filers
| Income Range | Tax Rate |
|---|---|
| Up to $200,000 | 1.45% |
| $200,001+ | 2.35% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| Up to $250,000 | 1.45% |
| $250,001+ | 2.35% |
Married Filing Separately
| Income Range | Tax Rate |
|---|---|
| Up to $125,000 | 1.45% |
| $125,001+ | 2.35% |
Head of Household
| Income Range | Tax Rate |
|---|---|
| Up to $200,000 | 1.45% |
| $200,001+ | 2.35% |
Self-Employed
Single Filers
| Income Range | Tax Rate |
|---|---|
| Up to $200,000 | 2.9% |
| $200,001+ | 3.8% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| Up to $250,000 | 2.9% |
| $250,001+ | 3.8% |
Married Filing Separately
| Income Range | Tax Rate |
|---|---|
| Up to $125,000 | 2.9% |
| $125,001+ | 3.8% |
Head of Household
| Income Range | Tax Rate |
|---|---|
| Up to $200,000 | 2.9% |
| $200,001+ | 3.8% |
Deductions & Exemptions
Standard Deduction
| Type | Amount |
|---|---|
| Single: | $15,750 |
| Married Filing Jointly: | $31,500 |
| Married Filing Separately: | $15,750 |
| Head of Household: | $23,625 |
Additional Information
- The One Big Beautiful Bill Act (Pub. L. 119-21) raised the basic standard deduction for 2025 to $15,750 for single filers and married couples filing separately, $31,500 for married couples filing jointly, and $23,625 for heads of household. These amounts replace the lower figures originally announced for 2025.
- Additional deduction for seniors (One Big Beautiful Bill Act): individuals age 65 or older may deduct an extra $6,000 ($12,000 if married filing jointly and both qualify) for 2025 through 2028, phasing out above modified AGI of $75,000 ($150,000 married filing jointly). This is separate from the additional standard deduction for age or blindness shown above.
- Deduction for qualified tips (One Big Beautiful Bill Act): up to $25,000 of qualified tip income for 2025 through 2028, phasing out above modified AGI of $150,000 ($300,000 married filing jointly).
- Deduction for qualified overtime pay (One Big Beautiful Bill Act): up to $12,500 ($25,000 married filing jointly) for 2025 through 2028, phasing out above modified AGI of $150,000 ($300,000 married filing jointly).
- For 2025 the alternative minimum tax exemption still phases out at the pre-2026 thresholds, and the exemption is reduced by $1 for every $4 of alternative minimum taxable income above the threshold. The One Big Beautiful Bill Act's lower thresholds and faster 50% phase-out rate first apply in 2026.
- Earned income tax credit figures shown for married filing separately are the "all other filing statuses" amounts, which apply only to separated spouses who meet the special rules of Internal Revenue Code section 32(d). Other married filing separately filers cannot claim the credit.
Sources
The 2025 figures for the federal government on this page were compiled from the following official government publications:
- IRS Revenue Procedure 2024-40 (2025 inflation adjustments)
- IRS Revenue Procedure 2025-32 (restates the 2025 amounts changed by the One, Big, Beautiful Bill Act)
- IRS Publication 15 (Circular E), Employer's Tax Guide (2025)
- IRS Instructions for Form 6251, Alternative Minimum Tax - Individuals (2025)
- IRS Instructions for Form 8863, Education Credits (2025)
- IRS Topic no. 751, Social Security and Medicare withholding rates
- IRS Questions and answers for the Additional Medicare Tax
- IRS Topic no. 559, Net Investment Income Tax
- IRS Child Tax Credit
- IRS Education credits - AOTC and LLC
- IRS Working Families Tax Cuts - Individuals and workers (One, Big, Beautiful Bill provisions)
Last updated: September 15, 2026
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