| We have compiled some charts with important federal tax information for 2025 | ||||
| Source: IRS | ||||
| Disclaimer: This post is for general information only and should not be taken as legal or financial advice | ||||
| 2025 Tax Brackets: | ||||
| Tax rate | Single | Married filing joint | Married filing separate | Head of Household |
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $11,600 | $0 to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,501 to$63,100 |
| 22% | $47,151 to $100,525 | $94,301 to$201,050 | $47,151 to$100,525 | $63,101 to$100,500 |
| 24% | $100,526 to $191,950 | $201,051 to$383,900 | $100,526 to$191,950 | $100,501 to$191,950 |
| 32% | $191,951 to $243,725 | $383,901 to$487,450 | $191,951 to$243,725 | $191,951 to$243,700 |
| 35% | $243,726 to$609,350 | $487,451 to$731,200 | $243,725 to$365,600 | $243,701 to$609,350 |
| 37% | $609,351 or more | $731,201 or more | $365,601 or more | $609,351 or more |
| Social Security/ Medicare | 2025 | 2024 | ||
| Social Security Tax Wage Base | $176,100 | $168,600 | ||
| Medicare Tax Wage Base | No limit | No limit | ||
| Employee portion of Social Security | 6.20% | 6.20% | ||
| Employee portion of Medicare | 1.45% | 1.45% | ||
| Individual Retirement Accounts | ||||
| Roth IRA Individual, up to 100% of earned income | $7,000 | $7,000 | ||
| Traditional IRA Individual, up to 100% of earned Income | $7,000 | $7,000 | ||
| Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older | $1,000 | $1,000 | ||
| Qualified Plan Limits | ||||
| Defined Contribution Plan limit on additions (Sections 415(c)(1)(A)) | $70,000 | $69,000 | ||
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) | $280,000 | $275,000 | ||
| Maximum compensation used to determine contributions | $350,000 | $345,000 | ||
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) | $23,500 | $23,000 | ||
| 401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older | $7,500 | $7,500 | ||
| Catch-up contributions to 401(k), 403(b) and 457 plans for those age 60, 61, 62 or 63* | $11,250 | N/A | ||
| SIMPLE deferrals (Section 408(p)(2)(A)) | $16,500 | $16,000 | ||
| SIMPLE additional “catch-up” contributions for employees age 50 and older | $3,500 | $3,500 | ||
| Catch-up contributions to SIMPLE plans for those age 60, 61, 62 or 63* | $5,250 | N/A | ||
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) | $160,000 | $155,000 | ||
| Compensation defining key employee (officer) in a top-heavy plan | $230,000 | $220,000 | ||
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) | $750 | $750 | ||
| Driving Deductions | ||||
| Business mileage, per mile | 70 cents | 67 cents | ||
| Charitable mileage, per mile | 14 cents | 14 cents (the rate is set by statute) | ||
| Medical and eligible moving** per mile | 21 cents | 21 cents | ||
| Business Equipment | ||||
| Maximum Section 179 deduction | $1.25 million | $1.22 million | ||
| Phase out for Section 179 | $3.13 million | $3.05 million | ||
| Business Meals | ||||
| General deduction for eligible business-related food and beverage expenses | 50% | 50% | ||
| Transportation Fringe Benefit Exclusion | ||||
| Monthly commuter highway vehicle and transit pass | $325 | $315 | ||
| Monthly qualified parking | $325 | $315 | ||
| Standard Deduction | ||||
| Married filing jointly | $30,000 | $29,200 | ||
| Single (and married filing separately) | $15,000 | $14,600 | ||
| Heads of Household | $22,500 | $21,900 | ||
| Domestic Employees | ||||
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. | $2,800 | $2,700 | ||
| Kiddie Tax | ||||
| Amount used to reduce the net unearned income reported on a child’s return that’s subject to the Kiddie Tax | $1,350 | $1,300 | ||
| Estate Tax | ||||
| Federal estate tax exemption | $13.99 million | $13.61 million | ||
| Maximum estate tax rate | 40% | 40% | ||
| Annual Gift Exclusion | ||||
| Amount you can give each recipient | $19,000 | $18,000 | ||
| Alternative Minimum Tax exemption | ||||
| Married filing jointly | $137,000 | $133,300 | ||
| and begins to phase out at $1,252,700 | and begins to phase out at $1,218,700 | |||
| Single | $88,100 | $85,700 | ||
| and begins to phase out at $625,350 | and begins to phase out at $609,350 | |||
| out at $626,350 | ||||
