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Have you noticed a slight increase in your take-home salary, even if your salary has not changed? If so, this could be due to the updated income tax scope by the internal tax service.
The IRS recently updated its income tax scope and standard deductions for 2025. Depending on your income level, this means your salary and tax liabilities may have changed.
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Even if your salary has not changed, you may lower your tax rates this year, effectively reducing your tax rates. This change may lead to a slight increase in the amount of money you bring home during each salary period.
The IRS makes annual tax changes to illustrate that inflation is normal. This helps prevent the “tax phase” – this is when inflation takes you into higher tax rates without really increasing your income.
These new tax changes will be made on January 1. Here’s everything you need to know about the scope of income tax this year, the increase in standard deductions, and how tax changes affect your funds.
Read more: Best Tax Software 2025: Turbotax leads the packaging, but these options may be good for you
How tax law changes affect your salary
When the IRS raises the scope of federal income tax, you may be under a different tax rate than the previous year even if your income remains the same.
For example, if you made $48,000 last year, you would fall to a 22% tax rate. But if your income stays the same level throughout 2025, you’ll drop to 12% brackets. This means you will get less federal taxes and less money withdrawn from your salary.
If you earn more in 2025 than in 2024, the amount of your salary increase will determine where you fall. You can still get stuck in lower tax rates or the same tax rates. In some cases, your tax rates and tax rates may increase.
Read more: Make sure to ask for all your tax credits to get the maximum tax refund
2025 Income Tax Brackets
Your federal income tax scope helps determine the fees you pay for taxes in a given tax year, excluding standard deductions or any listed tax deductions.
Income tax brackets for single file in 2025
| Taxable income | Federal tax rate |
|---|---|
| $11,925 or less | 10% |
| $11,926 to $48,475 | $1,192.50 plus 12% revenue over $11,925 |
| $48,476 to $103,350 | $5,578.50 plus 22% of revenue over $48,475 |
| $103,351 to $197,300 | $17,651 plus 24% revenue over $103,350 |
| $197,301 to $250,525 | $40,199 plus 32% revenue over $197,300 |
| $250,526 to $626,350 | $57,231 plus 35% revenue over $250,525 |
| $626,351 or more | $609,350 $188,769.75 plus 37% revenue over $626,350 |
Income tax brackets for married applicants in 2025, jointly submitted
| Taxable income | Federal tax rate |
|---|---|
| $23,850 or less | 10% |
| $23,851 to $96,950 | $2,385 plus 12% revenue over $23,850 |
| $96,951 to $206,700 | $11,157 plus 22% revenue over $96,950 |
| $206,701 to $394,600 | $35,302 plus 24% revenue over $206,700 |
| $394,601 to $501,050 | $80,398 plus 32% revenue over $394,600 |
| $501,051 to $751,600 | $114,462 plus 35% revenue over $501,050 |
| $751,601 or more | $202,154.50 plus 37% revenue over $751,600 |
Total income tax for family filing workers in 2025
| Taxable income | Federal tax rate |
|---|---|
| $17,000 or less | 10% |
| $17,001 to $64,850 | $1,700 plus 12% revenue over $17,000 |
| $64,851 to $103,350 | $7,442 plus 22% revenue over $64,850 |
| $103,351 to $197,300 | $15,912 plus 24% revenue over $103,350 |
| $197,301 to $250,500 | $38,460 plus 32% revenue over $197,300 |
| $250,501 to $626,350 | $55,484 plus 35% revenue over $250,500 |
| $626,351 or more | $187,031.50 plus 37% revenue over $626,350 |
2025 standard deduction
For 2025, the standard tax relief for single files has been raised to $15,000, an increase of $400 from 2024. For those married and co-submitted, the standard deduction has been increased to $30,000, an increase of $800 from the previous year.
IRS standard deduction
| Application Status | 2024 | 2025 |
|---|---|---|
| Single or married, submitted separately | $14,600 | $15,000 |
| Married, submitted together | $29,200 | $30,000 |
| Household owner | $21,900 | $22,500 |
Sources of all charts: IRS (PDF).
Most taxpayers with simple tax returns require deductions for standard deductions, thus reducing taxable income. If you get your salary from your employer as a W-2 employee only, standard deductions are usually the best way to maximize tax rebates. If you are self-employed or have a specific deduction to declare, you can list the deductions itemized.
Read more: Should you list taxes itemized instead of doing standard deductions?
Other 2025 tax changes may help you
There are other tax changes next year that could pay more in your salary. If you collect social security, you will receive 2.5% cost of living adjustments in 2025. Income tax credit for applicants with three or more qualified children also increased to $8,046.
Foreign earned income exclusion, estate tax credit exclusion, gift annual exclusion and adoption credit also increased.
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