Tax brackets and more are changing in 2024, 2025: What to know

(NEXSTAR) — We’re still two weeks away from the end of 2024, but maybe you’re already gearing up for tax season (we are more than 100 days out from Tax Day, in case you’re curious).

While the IRS recently announced big updates for tax year 2025, including another adjustment to the tax brackets due to inflation, there are some changes to be aware of before you file your taxes for 2024.

And, if you’re really looking forward to tax year 2025, we’ve included those updates below.

Tax brackets and the standard deduction for 2024

The standard deduction for single taxpayers and married individuals filing separately will be $14,600, up $750 over 2023. For married couples filing together, the standard deduction is rising by $1,500 to $29,200. For heads of households, it will be $21,900, up $1,100.

The table below shows the tax bracket breakdown for tax year 2024:

If your taxable income is greater than:	Taxes owed
$609,350 ($731,200 for married couples filing jointly)	37%
$243,725 ($487,450 for married couples filing jointly)	35%
$191,950 ($383,900 for married couples filing jointly)	32%
$100,525 ($201,050 for married couples filing jointly)	24%
$47,150 ($94,300 for married couples filing jointly)	22%
$11,600 ($23,200 for married couples filing jointly)	12%

(IRS)

If you had an income of $11,600 or less in 2024 (or $23,200 for married couples filing jointly), you fall under the lowest rate of 10%.

What else should you know for tax year 2024?

If you have three or more qualifying children, the maximum Earned Income Tax Credit will be $7,830, up from $7,430.

The alternative minimum tax exemption is also set to increase to $85,700 for individuals, phasing out at $609,350, and $133,300 for married couples filing jointly, phasing out at $1,218,700.

While there are a handful of other tax provisions set to change for the current tax year, there are some that will remain the same. That includes the lack of limitation on itemized deductions and the personal exemption, which will remain at 0.

What to expect in tax year 2025

Like tax year 2024, the standard deduction, tax brackets, and more will be updated for tax year 2025.

Single taxpayers and married individuals filing separately will see their standard deduction rise to $15,000, while those who are married and filing jointly will have a standard deduction of $30,000. For heads of households, it will be $22,500.

The tax brackets will also change. You can see those below:

If your taxable income is greater than:	Taxes owed
$626,350 ($751,600 for married couples filing jointly)	37%
$250,525 ($501,050 for married couples filing jointly)	35%
$197,300 ($394,600 for married couples filing jointly)	32%
$103,350 ($206,700 for married couples filing jointly)	24%
$48,475 ($96,950 for married couples filing jointly)	22%
$11,925 ($23,850 for married couples filing jointly)	12%
$11,925 or less ($23,850 or less for married couples filing jointly)	10%

(IRS)

The top tax rate remains unchanged, staying at 37% for single taxpayers with incomes over $626,350 and $751,600 for married couples filing jointly.

In tax year 2025, the maximum Earned Income Tax Credit amount will increase from $7,830 to $8,046 for qualifying taxpayers with three or more qualifying children.

The alternative minimum tax exemption amount will increase to $88,100 for individual filers, up $2,400 over the previous year. For married individuals filing separately, the exemption amount will increase to $68,650. For both groups, the exemption phases out at $626,350.

For married couples filing together, the exemption amount will rise to $137,000, phasing out at $1,252,700.

Like tax year 2024, multiple areas of the tax code will not be updated in tax year 2025, including personal exemptions and lack of limitation on itemized deductions.

Unlike previous years, the next two Tax Days will not be interrupted by weird calendar years as they both fall on April 15 — a Tuesday in 2025 and a Wednesday in 2026.

Jeremy Tanner contributed to this report.

Topics

Sports in 2024: What we learned from a year of change

From NIL to streaming to the ascendance of Caitlin Clark, has there ever been a year in sports that ushered in so much change at the same time?
Yahoo Sports - 11h
Here's what to know as electors cast ballots in 2024 election

Electors are voting in each state to formalize President-elect Donald Trump's victory over Vice President Kamala Harris in the 2024 election.
CBS News - 21h
What to know about Social Security's full retirement age in 2025

Social Security's full retirement age reflects the point at which people can claim their full benefits. It's going up in 2025.
CBS News - 1d
Drone sightings: What we know amid more observations in Northeast, calls for answers

Reports of drone sightings in New Jersey and New York have sparked increasing intrigue and, on Friday, more calls for transparency about what is known. The drones were first spotted last month, ...
The Hill - 4d
This is the best tax bracket for a Roth IRA conversion, advisors say

If you’re eyeing a Roth conversion, your tax bracket could help decide whether the transfer makes sense. Here’s what to know, according to financial experts.
CNBC - 4d
Considering a CD for 2025? Here's what experts say to know.

A CD has been a smart and effective way to grow your money in recent years. Here's what you should know going into 2025.
CBS News - 4d
What’s on Your Best-of List for 2024? We Want to Know.

Best cocktail or mocktail? Best advice? Best app you discovered? We want to know your highly subjective, hyper-specific, genre-agnostic favorites from the past year.
The New York Times - 6d
Golden Globes 2025: Who's nominated, hosting, ceremony honorees, what they'll eat and more

The Golden Globes will return with some star appeal with a slew of big names from Zendaya, Timothée Chalamet, Angelina Jolie, Daniel Craig, Denzel Washington, Ariana Grande and more
ABC News - Dec. 9
Hamas Took More Than 200 Hostages From Israel. Here's What We Know.

Israel says 96 hostages abducted on Oct. 7 remain in captivity, including the bodies of at least 34.
The Wall Street Journal - Dec. 5