Federal tax brackets determine the percentage of your income that goes toward taxes. They are part of a progressive tax system, meaning higher income levels are taxed at higher rates. Knowing your tax bracket is important for budgeting and finding ways to reduce taxable income.
This blog will explain the 2025 federal tax brackets and how they apply to earnings. Whether you’re filing for yourself or your household, this guide will make navigating taxes easier.
Federal Income Tax Brackets for 2025
The federal tax brackets vary depending on your filing status. Below is a table outlining the 2025 federal income tax brackets:
Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
10% | Up to $11,925 | Up to $23,850 | Up to $17,900 |
12% | $11,926 – $48,475 | $23,851 – $96,950 | $17,901 – $71,200 |
22% | $48,476 – $103,350 | $96,951 – $206,700 | $71,201 – $152,200 |
24% | $103,351 – $197,300 | $206,701 – $394,600 | $152,201 – $230,450 |
32% | $197,301 – $250,525 | $394,601 – $501,050 | $230,451 – $250,525 |
35% | $250,526 – $626,350 | $501,051 – $751,600 | $250,526 – $626,350 |
37% | Over $626,350 | Over $751,600 | Over $626,350 |
Note that the U.S. tax system is progressive. This means only the income within each bracket is taxed at the corresponding rate. For example, a single filer earning $50,000 in 2025 would be taxed as follows:
- 10% on the first $11,925
- 12% on income from $11,926 to $48,475
- 22% on income from $48,476 to $50,000
Standard Deduction for 2025 and Its Impact on Taxable Income
The standard deduction is a fixed amount that reduces your taxable income, making it a key factor in calculating your taxes. For 2025, the standard deduction amounts are:
- $15,000 for single filers and married individuals filing separately.
- $30,000 for married couples filing jointly.
- $22,500 for heads of household.
This deduction allows you to lower the portion of your income subject to federal taxes. For example, if you’re a single filer earning $60,000, the standard deduction reduces your taxable income to $45,000. The remaining amount is then taxed based on the applicable federal tax brackets.
How Federal Tax Brackets and Deductions Work Together?
Federal tax brackets and deductions work together to determine your taxable income and how much you owe. Here’s how the process works:
- Start with Your Total Income: Calculate your total income from all sources, such as wages, investments, or business earnings.
- Apply the Standard Deduction or Itemized Deductions: Subtract the standard deduction or your total itemized deductions (whichever is higher) from your total income. This gives you your taxable income.
- Use Tax Brackets to Calculate Taxes: Apply the federal tax brackets based on your taxable income. Only the portion of income within each bracket is taxed at that bracket’s rate.
For example:
- Total income: $70,000 (single filer)
- Standard deduction: $15,000
- Taxable income: $55,000
Taxes owed:- 10% on the first $11,925
- 12% on $11,926 to $48,475
- 22% on $48,476 to $55,000
Take Charge of Your Taxes with Tax Preparers Near You!
Navigating federal tax brackets and deductions can feel overwhelming, but you don’t have to handle it alone. TaxShield Service provides professional assistance to help you understand your tax obligations, reduce taxable income, and maximize savings.
With accurate filing and personalized advice, we help you maximize tax-saving opportunities.
Call 844-503-0401 to schedule a consultation.
