Tax Brackets, Child Tax Credit, and Key Changes
As we prepare for the 2025 tax year, there are several important updates taxpayers should be aware of — especially families and small business owners.
2025 Tax Brackets
The IRS continues to adjust tax brackets for inflation. While the structure remains the same, income thresholds have increased, which may keep some taxpayers in lower brackets compared to prior years. This helps offset inflation but does not eliminate overall tax liability.
| Tax rate | Single filer | Married filing jointly (or surviving spouse) | Head of household | Married filing separately |
| 10% | $0 to $11,925 | $0 to $23,850 | $0 to $17,000 | $0 to $11,925 |
| 12% | $11,926 to $48,475 | $23,851 to $96,950 | $17,001 to $64,850 | $11,926 to $48,475 |
| 22% | $48,476 to $103,350 | $96,951 to $206,700 | $64,851 to $103,350 | $48,476 to $103,350 |
| 24% | $103,351 to $197,300 | $206,701 to $394,600 | $103,351 to $197,300 | $103,351 to $197,300 |
| 32% | $197,301 to $250,525 | $394,601 to $501,050 | $197,301 to $250,500 | $197,301 to $250,525 |
| 35% | $250,526 to $626,350 | $501,051 to $751,600 | $250,501 to $626,350 | $250,526 to $375,800 |
| 37% | $626,351 or more | $751,601 or more | $626,351 or more | $375,801 or more |
Child Tax Credit (CTC)
For 2025:
- The Child Tax Credit remains up to $2,000 per qualifying child
- The refundable portion is capped at $1,700
- Phaseouts still begin at:
- $200,000 for Single filers
- $400,000 for Married Filing Jointly
Other Notable 2025 Updates
- Bonus depreciation continues to phase down
- Standard deduction amounts increased due to inflation
- Energy-efficient home improvement credits remain available with annual caps
