The standard deduction for federal income tax in 2025 has been increased to $30,000.

The standard deduction for federal income tax in 2025 has been increased to $30,000.
The standard deduction for federal income tax in 2025 has been increased to $30,000.

The Internal Revenue Service unveiled its annual inflation adjustments for 2025, which included changes to the federal income tax brackets and standard deduction on Tuesday.

In 2025, the standard deduction for individual filers will increase to $15,000, while joint filers will see an increase to $30,000 and heads of household will receive a deduction of $22,500, according to the IRS.

The 2025 tax year will use updated federal income tax brackets, which you can see below. Taxable income is calculated by subtracting your itemized deductions or the standard deduction, whichever is greater, from your adjusted gross income.

The tax rate for married and joint filers is the same as that of single filers, provided that the income of both spouses combined is double the income of a single filer. For instance, if both you and your spouse earn $80,000, your tax rate will remain unchanged when filing jointly as compared to filing separately.

According to the IRS, the 2025 federal income tax brackets for married couples filing jointly are as follows:

More tax updates for 2025

In 2025, the Earned Income Tax Credit will increase, with taxpayers with three or more qualifying children able to receive a maximum credit of $8,046, up from $7,830 in 2024. This credit is available to low to moderate earners with children, or to taxpayers between the ages of 25 and 65 who don't have children and aren't claimed as dependents on someone else's taxes.

In 2025, employees with health flexible spending arrangements can contribute more due to the increase in the payroll contribution limit to FSAs from $3,200 to $3,300, as announced by the IRS.

The foreign earned income exclusion for 2025 will be $130,000, and the basic exclusion amount for estates of decedents who die in 2025 will be $13.99 million.

However, some things remain unchanged for the 2025 tax year.

The Tax Cuts and Jobs Act of 2017 resulted in personal exemptions remaining at zero and itemized deductions remaining unlimited. However, this policy is set to expire at the end of 2025.

The income limits for taxpayers eligible to claim the Lifetime Learning Credit remain unchanged for 2025. Taxpayers earning a modified adjusted gross income of up to $90,000 ($180,000 for joint filers) are eligible to claim up to a $2,000 credit per return.

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