2025 Federal and State Tax Rates
Stay informed with A BottomLine Co.’s comprehensive guide to the 2025 federal and state tax rates. Whether you’re an individual taxpayer or a business owner, understanding these rates is crucial for effective tax planning and compliance. Don’t forget to check our tax due dates to stay on top of all filing deadlines.
| 2025 Tax Rates - Single Taxpayers | Standard Deduction $15,750 | 2024 Rates |
|---|---|---|
| 10% | 0 to $11,925 | |
| 12% | $11,925 to $48,475 | |
| 22% | $48,475 to $103,350 | |
| 24% | $103,350 to $197,300 | |
| 32% | $197,300 to $250,525 | |
| 35% | $250,525 to $626,350 | |
| 37% | Over $626,350 | |
| 2025 Tax Rates - Married Jointly & Surviving Spouses | Standard Deduction $31,500 | |
| 10% | 0 to $23,850 | |
| 12% | $23,850 to $96,950 | |
| 22% | $96,950 to $206,700 | |
| 24% | $206,700 to $394,600 | |
| 32% | $394,600 to $501,050 | |
| 35% | $501,050 to $751,600 | |
| 37% | Over $751,600 | |
| 2025 Tax Rates - Married Filing Separately | Standard Deduction $15,750 | |
| 10% | 0 to $11,925 | |
| 12% | $11,925 to $48,475 | |
| 22% | $48,475 to $103,350 | |
| 24% | $103,350 to $197,300 | |
| 32% | $197,300 to $250,525 | |
| 35% | $250,525 to $375,800 | |
| 37% | Over $375,800 | |
| 2025 Tax Rates - Head of Household | Standard Deduction $23,625 | |
| 10% | 0 to $17,000 | |
| 12% | $17,000 to $64,850 | |
| 22% | $64,850 to $103,350 | |
| 24% | $103,350 to $197,300 | |
| 32% | $197,300 to $250,500 | |
| 35% | $250,500 to $626,350 | |
| 37% | Over $626,350 | |
| 2025 Tax Rates - Estates & Trusts | ||
| 10% | 0 to $3,150 | |
| 24% | $3,150 to $11,450 | |
| 35% | $11,450 to $15,650 | |
| 37% | Over $15,650 | |
| 2025 Social Security | 2025 Tax Rates | |
| Social Security Tax Rate: Employers | 6.2% | |
| Social Security Tax Rate: Employees | 6.2% | |
| Social Security Tax Rate: Self-Employed | 12.4% | |
| Maximum earnings subject to Social Security tax | $176,100 | |
| Maximum earnings subject to Medicare tax | Unlimited | |
| Medicare Tax Rate: Employers | 1.45% | |
| Medicare Tax Rate: Employees | 1.45% | |
| Medicare tax rate: Self-employed | 2.9% | |
| Additional Medicare tax on FICA wages and self-employment income above $200,000 (single filers) or $250,000 (joint filers) | 0.9% | |
| Net investment income tax on taxpayers with modified adjusted gross income (MAGI) exceeding $200,000 (single filers) or $250,000 (joint filers) | 3.8% | |
| 2025 Miscellaneous | 2025 Amount | |
| Business Section 179 expensing limit | 6.2% | |
| Business Section 179 phaseout threshold | 6.2% | |
| First-year bonus depreciation rate | 12.4% | |
| Income threshold after which the Section 199A (qualified business income) deduction for pass-through entities may begin to phase out | $197,300 (single and head of household); $394,600 (married filing jointly) | |
| Qualified small-employer Health Reimbursement Arrangement limit | $6,350 (single coverage); $12,800 (family coverage) | |
| Prior-year safe harbor for estimated taxes of higher-income taxpayers | 110% of 2024 tax liability | |
| Standard mileage rate for business driving | 70 cents | |
| Standard mileage rate for medical driving | 21 cents | |
| Standard mileage rate for moving driving (only members of the Armed Forces on active duty who move because of a permanent change of station) | 21 cents | |
| Standard mileage rate for charitable driving | 14 cents | |
| Child Tax Credit (per child under age 17 at the end of the tax year) | $2,200 | |
| Unearned income maximum for children under 19 before kiddie tax applies | $1,350 | |
| Maximum capital gains tax rate for taxpayers with income up to $48,350 for single filers, $96,700 for married filing jointly | 0% | |
| Maximum capital gains tax rate for taxpayers with income $48,350 to $533,400 for single filers, $96,700 to $600,050 for married filing jointly | 15% | |
| Maximum capital gains tax rate for taxpayers with income above $533,400 for single filers, $600,050 for married filing jointly | 20% | |
| Capital gains tax rate for unrecaptured Sec. 1250 gains | 25% | |
| Capital gains tax rate on collectibles | 28% | |
| Maximum contribution for Traditional/Roth IRA | $7,000 if under age 50 / $8,000 if 50 or older | |
| Maximum employee contribution to SIMPLE IRA | $16,500 if under age 50 / $20,000 if 50 or older + $1,750 if age 60, 61, 62 or 63 | |
| Maximum contribution to SEP IRA | 25% of eligible compensation up to $70,000 | |
| Senior deduction for eligible taxpayers age 65 or older | $6000 | |
| Income threshold after which the senior deduction begins to phase out | $75,000 ($150,000 for married filing jointly) | |
| Maximum deduction for qualified tips income | $25,000 | |
| Income threshold after which the tips deduction begins to phase out | $150,000 ($300,000 for married filing jointly) | |
| Maximum deduction for qualified overtime compensation | $12,500 ($25,000 for married filing jointly) | |
| Inocme threshold after which the overtime deduction begins to phase out | $150,000 ($300,000 for married filing jointly) | |
| Maximum deduction for qualified passenger vehicle loan interest | $10,000 | |
| Income threshold after which the passenger vehicle loan interest deduction begins to phase out | $100,000 ($200,000 for married filing jointly) | |
| Maximum deduction for state and local taxes (SALT) | $40,000 | |
| Income threshold after which the maximum SALT deduction is reduced | $500,000 | |
| 2025 Education | 2025 Tax Rates | |
| American Opportunity Credit (per student) | $2,500 | |
| Lifetime Learning Credit (per return) | $2,000 | |
| Student Loan Interest Deduction (per return) | $2,500 | |
| Coverdell Education Savings Account Contribution (per student) | $2,500 | |
| 2025 Standard Meal Rates for Family Child Care Providers for income tax returns | ||
| July 1, 2024 - June 30, 2025 | ||
| For each breakfast | $1.66 | |
| For each lunch or supper | $3.15 | |
| For each snack (up to 3 per day for each child) | $0.93 | |
| July 1, 2024 - June 30, 2025 | ||
| For each breakfast | $2.66 | |
| For each lunch or supper | $5.10 | |
| For each snack (up to 3 per day for each child) | $1.52 | |
| July 1, 2024 - June 30, 2025 | ||
| For each breakfast | $2.14 | |
| For each lunch or supper | $4.09 | |
| For each snack (up to 3 per day for each child) | $1.22 | |
| Source: Federal Register |
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