IRS announces tax changes for 2025: Every year Internal Revenue Services Department adjusts its tax rates. Every year IRS modifies over 60 Tax provisions, term is also known as “Tax Bracket Creep”. This happens when inflation increases with the rate more than the increasing rate of income.
This drives people into the high tax slots and decreases the value they get from credits and cuts. The Internal Revenue Services Department uses Chained CPI to calculate the inflation for making adjustments in IRS Tax Rates. Through measuring inflation, taxes are deducted and income limits and credit values. IRS has also made some changes in Tax Brackets this year. These new adjustments Tax returns will be filed for tax year 2026.
For Single Filer: $626,350 For Joint Filing: $751,600
AMT Exemption
For Single Filer: $88,100 For Joint Filer: $137,000
EITC for more than 3 Children couple
$8,046
Transportation/Parking
$325
Health FSA Contribution Limit
$3,300
Medical Savings Account
Deductible: $2,850–$4,300
Foreign Earned Income Exclusion
$130,000
Estate Tax Credit
$13,990,000
Gift Tax Exclusion
$19,000
Adoption Credit
$17,280
Unchanged Items
Personal exemptions Itemized deductionsLifetime Learning Credit
IRS Standard Deductions 2025
According to the new IRS Tax Changes 2025, for individual tax filers standard deductions will be raised by $400, and for married or joint filers the same will be increased by $800. Head earners of the families the standard deductions will be increased by $600. Old-age filer citizens who have crossed the age of 65 may file for an additional standard deduction of $2,000 for alone and $1,600 for joint filers.
Filing Status
2025 Income Limit
Increased from 2024
Single and Married Filing Separately
$15,000 or more
$400
Married Filing Jointly
$30,000 or more
$800
Head of Household
$22,500 or more
$600
IRS Marginal Tax Rates 2025
In IRS Marginal Tax Rate Changes 2025, the income limits will be adjusted according to inflation and will be as follows. The IRS has fixed 7 tax rates from 10% to 37%. The maximum marginal tax rate is 37 percent for single filers who make $626,350 or more and for joint filers who earn more than $751,600.
IRS Alternative Minimum Tax (AMT) Exemption Rates 2025
The Alternative Minimum Tax Exemption (AMTE) was initiated to stop high taxpayers to avoid them paying individual income tax. The AMT is divided into two rates: 26% and 28%. AMT exemption amount for single filers is fixed at $88,100, for couples but joint filers it is fixed at $137,00, and for married but separate filers AMT is set at $68,650.
Filing Conditions
2025 Amount
Discontinue on
Single Filers
$88,100
$626,350
Married but Separate Filers
$68,650
$626,350
Married but Joint filers
$137,000
$1,252,700
IRS Maximum EITC Changes 2025
For qualifying tax filers having 3 or more qualifying children, the Maximum Earned Income Tax Credit will be $8,046 with an increase of $216 from the previous rate.
Balvinder Saaga, an engineering graduate from Delhi University, has been passionately working as a content writer since 2021. Hailing from Punjab, Balvinder specializes in crafting informative and engaging content with a core focus on education and social schemes
