These Tax Bracket Changes Could Put More Money in Your Paycheck Next Year. Here's How

The Internal Revenue Service announced increases to the federal income tax brackets and the standard deduction for 2025. These changes could put more money in your paycheck or potentially boost your tax return.

If you fall into a lower tax bracket in 2025, you’ll pay a lower tax rate, which can slightly increase the amount of money you take home each pay period. A higher standard deduction could also help lower your tax bill or boost your income, in some cases.

This story is part of Taxes 2025, CNET’s coverage of the best tax software, tax tips and everything else you need to file your return and track your refund.

It’s normal for the IRS to make tax code changes each year to account for inflation. This also helps prevent “tax bracket creep,” which could push you into a higher tax bracket, even though inflation is eating into your wages.

These new tax changes will go live on January 1. Here’s everything you need to know about next year’s income tax brackets, the standard deduction increase and how tax changes could impact your money.

How tax code changes affect your paycheck

When the IRS raises federal income tax brackets, you might fall into a different tax bracket than you did the year before — even if your income has stayed the same.

For example, if you made $48,000 this year, you’ll fall into the 22% tax bracket. But if your income remains at the same throughout 2025, you’ll drop down to the 12% bracket. That means you’ll be on the hook for less federal tax next year and will have less money withdrawn from your paycheck.

If you make more in 2025 than you did in 2024, the amount your pay has increased will determine where you fall. You could still fall into a lower tax bracket or the same tax bracket. In some cases, your tax bracket and tax rate may increase.

2025 income tax brackets

Your federal income tax bracket helps determine how much you’ll pay in taxes for a given tax year, excluding the standard deduction or any itemized tax deductions.

2025 income tax brackets for single filers

Taxable income	Federal tax rate
$11,925 or less	10%
$11,926 to $ $48,475	$1,192.50 plus 12% of income over $11,925
$48,476 to $103,350	$5,578.50 plus 22% of income over $48,475
$103,351 to $197,300	$17,651 plus 24% of income over $103,350
$197,301 to $250,525	$40,199 plus 32% of income over $197,300
$250,526 to $626,350	$57,231 plus 35% of income over $250,525
$626,351 or more	$609,350 $188,769.75 plus 37% of income over $626,350

2025 income tax brackets for filers who are married, filing jointly

Taxable income	Federal tax rate
$23,850 or less	10%
$23,851 to $96,950	$2,385 plus 12% of income over $23,850
$96,951 to $206,700	$11,157 plus 22% of income over $96,950
$206,701 to $394,600	$35,302 plus 24% of income over $206,700
$394,601 to $501,050	$80,398 plus 32% of income over $394,600
$501,051 to $751,600	$114,462 plus 35% of income over $501,050
$751,601 or more	$202,154.50 plus 37% of income over $751,600

2025 income tax brackets for head of household filers

Taxable income	Federal tax rate
$17,000 or less	10%
$17,001 to $64,850	$1,700 plus 12% of income over $17,000
$64,851 to $103,350	$7,442 plus 22% of income over $64,850
$103,351 to $197,300	$15,912 plus 24% of income over $103,350
$197,301 to $250,500	$38,460 plus 32% of income over $197,300
$250,501 to $626,350	$55,484 plus 35% of income over $250,500
$626,351 or more	$187,031.50 plus 37% of income over $626,350

2025 standard deduction

For 2025, the standard tax deduction for single filers has been raised to $15,000, a $400 increase from 2024. For those married and filing jointly, the standard deduction has been raised to $30,000, up $800 from the previous year.

IRS Standard deduction

Filing status	2024	2025
Single or married, filing separately	$14,600	$15,000
Married, filing jointly	$29,200	$30,000
Head of household	$21,900	$22,500

Source for all charts: IRS (PDF).

Most taxpayers with simple tax returns claim the standard deduction, which reduces their taxable income. If you receive your wages solely from an employer as a W-2 employee, the standard deduction is usually the best way to maximize your tax refund. If you’re self-employed or have specific deductions you’d like to claim, you’ll itemize your deductions instead.

Other 2025 tax changes that may help you

There are other tax changes happening next year that could put more money in your paycheck. If you collect Social Security, you’ll receive a 2.5% cost-of-living-adjustment in 2025. The Earned Income Tax Credit also increased to $8,046 for filers with three or more qualifying children.

The Foreign Earned Income Exclusion, estate tax credits exclusion, annual exclusion for gifts and adoption credit also increased.