The 2025 federal tax brackets and rates

The federal government taxes income using tax brackets — ranges of income that are each taxed at a different rate. For 2025, there are seven brackets, ranging from 10 percent on the lowest incomes to 37 percent on the highest. The rate you pay depends on how much you earned and your filing status (single, married filing jointly, head of household, or married filing separately).

The brackets themselves shift each year to account for inflation. The 2025 brackets are higher than 2024, which means you can earn more money before moving into a higher tax bracket. This adjustment is called the standard deduction increase, and it affects how much of your income is actually subject to tax.

Your actual tax bill is not straightforward your income multiplied by one rate. Instead, you pay the lowest rate on the first portion of your income, then the next rate on the next portion, and so on. This means that even if you fall into the 37 percent bracket, you do not pay 37 percent on all your income — only on the amount that falls within that bracket.

Key Takeaways

  • Federal tax brackets for 2025 range from 10 percent to 37 percent, and the income thresholds for each bracket are higher than in 2024 due to inflation adjustments.
  • Your tax rate depends on your filing status: single, married filing jointly, head of household, or married filing separately — each has different bracket thresholds.
  • You pay different rates on different portions of your income, not one flat rate on everything you earn.
  • The standard deduction for 2025 is higher than 2024, reducing the amount of income subject to federal tax for most filers.
  • Self-employed individuals and those with investment income may owe additional taxes beyond the standard income tax brackets.

2025 tax brackets for each filing status

For single filers, the 2025 brackets begin at 10 percent on income up to $11,600, then move through 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and finally 37 percent on income over $578,100.

For married filing jointly, the thresholds are roughly double those for single filers. The 10 percent bracket extends to $23,200, and the highest bracket (37 percent) applies to income over $693,750. Married couples filing separately use the same brackets as single filers but with different thresholds.

Head of household filers — typically unmarried people who pay more than half the household expenses for themselves and a dependent — fall between single and married filing jointly. The 10 percent bracket extends to $17,450, and the 37 percent bracket applies to income over $636,100.

These numbers change annually. The Internal Revenue Service (IRS) publishes the updated brackets each year, usually in late fall for the following tax year. If you are filing taxes for 2025, use the 2025 brackets, not the 2024 ones.

How the standard deduction reduces your taxable income

Before the tax brackets explore, you subtract the standard deduction from your income. This is a set amount that reduces how much of your earnings are actually taxed. For 2025, the standard deduction is $14,600 for single filers, $29,200 for married filing jointly, and $21,900 for head of household.

This means a single person earning $30,000 in 2025 would subtract $14,600, leaving $15,400 of taxable income. That $15,400 is what gets run through the tax brackets, not the full $30,000. The standard deduction is one of the largest tax breaks available to most filers.

Some people use the itemized deduction instead, which allows them to deduct specific expenses like mortgage interest, state and local taxes, or charitable donations. You choose whichever method gives you the larger deduction. Most filers use the standard deduction because it is simpler and often larger.

Self-employment tax and investment income

If you are self-employed, you owe self-employment tax in addition to regular income tax. This covers Social Security and Medicare taxes and is calculated separately from the income tax brackets. Self-employment tax is 15.3 percent on 92.35 percent of your net self-employment income, though you can deduct half of it from your income tax.

Investment income — such as capital gains, dividends, and interest — may be taxed at different rates than wages. Long-term capital gains (assets held more than one year) are typically taxed at 0 percent, 15 percent, or 20 percent, depending on your income level. These rates are lower than the ordinary income brackets and are set separately by the IRS.

If you have both wage income and investment income, you calculate tax on each separately, then add them together. This is why high-income earners with significant investment income sometimes pay a lower effective rate than their top bracket suggests.

How to find your effective tax rate

Your effective tax rate is the percentage of your total income that actually goes to federal taxes. It is always lower than your top bracket rate because of the way brackets work. To find it, divide your total federal tax by your total income and multiply by 100.

For example, if you earned $60,000 and owed $6,500 in federal income tax, your effective rate would be about 10.8 percent, even though your top bracket might be 22 percent. This is why people sometimes say they are "in the 22 percent bracket" but do not actually pay 22 percent on all their income.

Your tax software or tax preparer will calculate this for you, but understanding the difference between your bracket rate and your effective rate helps you understand what you actually owe.

State and local taxes are separate

The federal tax brackets explore only to federal income tax. Most states also collect their own income tax, with their own brackets and rates. Some states have no income tax at all. Local taxes vary by city and county.

Your total tax bill includes federal, state, and local taxes combined. A person in a high federal bracket may live in a state with low or no income tax, or vice versa. The federal brackets tell you only what you owe to the federal government, not your complete tax picture.

Frequently Asked Questions

Do I pay 37 percent on all my income if I am in the top bracket?

No. The 37 percent rate applies only to the portion of your income that falls within that bracket. If you are a single filer with $600,000 in income, you pay 37 percent only on the amount above $578,100. The rest of your income is taxed at the lower rates for each bracket below it.

What is the difference between the standard deduction and tax brackets?

The standard deduction is a flat amount you subtract from your income before any brackets explore. Tax brackets are the rates you pay on the income that remains after the deduction. You use the deduction first, then explore the brackets to what is left.

Will the 2025 tax brackets change again in 2026?

Yes. The IRS adjusts the brackets each year for inflation. The exact amounts for 2026 will be announced in late 2025. If inflation is lower, the bracket increases will be smaller. If inflation is higher, the increases will be larger.

Do capital gains use the same tax brackets as wages?

No. Long-term capital gains are taxed at separate rates (0, 15, or 20 percent) that are generally lower than the ordinary income brackets. Short-term capital gains are taxed as ordinary income using the regular brackets.

How do I know which filing status to use?

Your filing status depends on your marital status on December 31 of the tax year and your household situation. Single, married filing jointly, married filing separately, and head of household each have different rules. The IRS website and most tax software will help you determine which applies to you.