2025 Federal Income Tax Brackets Explained: What You'll Owe

The U.S. federal income tax system uses progressive brackets — meaning different portions of your income are taxed at different rates. Understanding how this works is key to estimating your tax bill, planning deductions, and making smart financial decisions about retirement contributions, side income, and investment timing.

2025 Tax Brackets: Single Filers

The IRS adjusts tax brackets annually for inflation. For the 2025 tax year (filed in 2026), here are the brackets for single filers, per IRS Revenue Procedure 2024-40:

10%: $0 – $11,925

12%: $11,926 – $48,475

22%: $48,476 – $103,350

24%: $103,351 – $197,300

32%: $197,301 – $250,525

35%: $250,526 – $626,350

37%: Over $626,350

2025 Tax Brackets: Married Filing Jointly

Married couples filing jointly benefit from wider brackets, effectively doubling most of the single-filer thresholds:

10%: $0 – $23,850

12%: $23,851 – $96,950

22%: $96,951 – $206,700

24%: $206,701 – $394,600

32%: $394,601 – $501,050

35%: $501,051 – $751,600

37%: Over $751,600

How Marginal Rates Actually Work

A common misconception is that moving into a higher bracket means all your income is taxed at that rate. In reality, only the income within each bracket is taxed at that bracket's rate. This is the marginal tax system.

For example, a single filer earning $60,000 in taxable income pays:

10% on the first $11,925 = $1,192.50

12% on the next $36,549 (from $11,926 to $48,475) = $4,385.88

22% on the remaining $11,525 (from $48,476 to $60,000) = $2,535.50

Total federal tax: $8,113.88 — an effective rate of 13.5%, even though the marginal rate is 22%.

This means you should never fear "moving into a higher bracket." Only the additional dollars above the threshold are taxed at the higher rate. A raise from $48,000 to $52,000 does not suddenly cost you more on your first $48,000.

2025 Standard Deduction

Before applying tax brackets, most filers subtract the standard deduction from their gross income. For 2025, the standard deduction was increased by the One, Big, Beautiful Bill Act (signed July 2025):

Single: $15,750

Married Filing Jointly: $31,500

Head of Household: $23,625

This means a single filer earning $75,000 in gross income only pays taxes on $59,250 of taxable income ($75,000 minus $15,750 standard deduction). At higher incomes, itemizing deductions for mortgage interest, state and local taxes (capped at $10,000), and charitable contributions may exceed the standard deduction.

Effective Tax Rate Examples

Your effective tax rate is what you actually pay as a percentage of gross income — always lower than your marginal bracket. Here are examples for single filers taking the standard deduction:

$50,000 gross income: Taxable income $34,250. Federal tax: $3,872. Effective rate: 7.7%

$75,000 gross income: Taxable income $59,250. Federal tax: $7,949. Effective rate: 10.6%

$100,000 gross income: Taxable income $84,250. Federal tax: $13,449. Effective rate: 13.4%

$150,000 gross income: Taxable income $134,250. Federal tax: $25,067. Effective rate: 16.7%

$200,000 gross income: Taxable income $184,250. Federal tax: $37,067. Effective rate: 18.5%

As income rises, the effective rate climbs but remains well below the top marginal rate. See our detailed walkthrough of taxes on a $100K salary for a complete breakdown. Note: The standard deduction for 2025 was increased from the originally announced $15,000 to $15,750 by the One, Big, Beautiful Bill Act, signed in July 2025.

FICA Taxes: The Other Paycheck Deduction

Federal income tax is not the only tax on your earnings. FICA taxes fund Social Security and Medicare:

Social Security: 6.2% on earnings up to $176,100 (2025 wage base)

Medicare: 1.45% on all earnings, plus an additional 0.9% on earnings above $200,000 (single) or $250,000 (married filing jointly)

For a worker earning $100,000, FICA adds $7,650 to the tax bill. Combined with federal income tax, the total effective rate approaches 21% — before any state taxes.

States With No Income Tax

Nine states impose no individual income tax as of 2025:

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming

Living in a no-income-tax state can save high earners thousands annually. A worker earning $150,000 in California pays roughly $9,200 in state income tax. The same earner in Texas pays $0. However, states without income tax may have higher property taxes or sales taxes to compensate.

Key Changes From 2024 to 2025

The 2025 brackets increased by approximately 2.8% compared to 2024, reflecting inflation adjustments. The One, Big, Beautiful Bill Act further increased standard deductions. Key changes:

The standard deduction rose from $14,600 to $15,750 (single) and from $29,200 to $31,500 (MFJ), including the OBBBA increase

The 22% bracket threshold moved from $47,150 to $48,475 (single)

The Social Security wage base increased from $168,600 to $176,100

These adjustments prevent "bracket creep" — the phenomenon where inflation pushes workers into higher brackets without any real increase in purchasing power.

Calculate Your Exact Tax

Every financial situation is different. Use our Tax Calculator to see your federal income tax, FICA contributions, and effective tax rate based on your actual income and filing status. For broader financial planning, check where your salary ranks nationally with our Salary Percentile Calculator.