IRS Boosts Taxpayer Standard Deductions, Other Credits for 2025

The IRS announced its annual inflation adjustments Tuesday for tax year 2025, setting marginal rates and bumping up standard deductions, earned income tax credits, alternative minimum tax exemption amounts, and others.

For tax year 2025, the top marginal tax rate remains 37% for individual single taxpayers making more than $626,350, or $751,600 for married couples filing jointly, according to the Revenue Procedure 2024-40.

The lowest rate is 10% for single taxpayers making $11,925 or less.

• The IRS also increased the Alternative Minimum Tax Exemption amount to $88,100 for unmarried individuals, and increased the Earned Income Tax Credit to a ...