Key 2025 Tax Facts

2025 won’t bring about many huge changes. Most of the key tax changes going into effect in the new year amount to adjustments to income or contribution limits.   As of this article’s writing, the tax cuts ushered in as part of the Tax Cuts and Jobs Act of 2017—related to income tax and the estate tax—are set to expire at the end of this year, barring congressional action.  Here are key tax-related dates and data points to have on your radar for the year ahead.

2025 Important Tax Facts for All Taxpayers

All taxpayers should be aware of the new income tax brackets, deduction amounts and exemption amounts for 2025.

2025 Federal Income Tax Brackets: Single Taxpayers

Seven tax brackets remain for income earned by single taxpayers in 2025, but the specific parameters have changed, as follows:

 2025 Federal Income Tax Brackets: Married Couples Filing Jointly

Seven tax brackets remain for income earned by married couples filing jointly in 2025, but the specific parameters have changed, as follows:

 Standard Deduction

Standard deduction amounts are increasing in 2025, to $15,000 for single filers and $30,000 for married couples filing jointly. People who are over 65 or blind can claim an additional $1,600 per person for their standard deduction ($2,000 for unmarried people over age 65). For heads of households, the 2025 standard deduction increases to $22,500 for 2025.

AMT-Exempt Amounts

The exemption amounts for the alternative minimum tax are increasing slightly in 2025, to $88,100 for single filers and $137,000 for married couples filing jointly. The exemption amounts phase out for single filers with alternative minimum taxable incomes of more than $626,350, and $1,252,700 for married couples filing jointly.

Estate/Gift Tax Exemption

This amount is increasing in 2025, to $13.99 million per individual. The annual gift-tax exclusion is increasing to $19,000, up from $18,000 in 2024. (Note that annual gifts in excess of this amount do not automatically trigger any sort of gift tax. Most people won’t owe estate or gift taxes in their lifetimes under current tax laws.)

2025 Important Tax Facts for Investors

Qualified Dividend and Long-Term Capital Gains Rates

Three rates are still in place for dividends and long-term capital gains—0%, 15%, and 20%. Here are the parameters for each of the rates.

• 0%: Single taxpayers with incomes between $0 and $48,350; married couples filing jointly with incomes between $0 and $96,700.
• 15%: Single taxpayers with incomes between $48,351 and $533,400; married couples filing jointly with incomes between $96,701 and $600,050.
• 20%: Single taxpayers with incomes over $533,400; married couples filing jointly with incomes over $600,050.

Medicare Surtax

As in years past, an additional 3.8% Medicare surtax will apply to the lesser of net investment income or the excess of modified adjusted gross income over $200,000 for single taxpayers and $250,000 for married couples filing jointly.

Individual Retirement Account Rules

• IRA Contribution Limits (Roth or Traditional): Unchanged: $7,000 under age 50/$8,000 age 50 and over.
• Income Limits for Roth IRA Contribution, single filers: Modified adjusted gross income under $150,000—full Roth contribution; between $150,000 and $165,000—partial Roth contribution; more than $165,000—no Roth contribution.
• Income Limits for Roth IRA Contribution, married couples filing jointly: Modified adjusted gross income under $236,000—full Roth contribution; between $236,000 and $246,000—partial Roth contribution; more than $246,000—no Roth contribution.
• Income Limits for Deductible IRA Contribution, single filers covered by a retirement plan at work: Modified adjusted gross income under $79,000—fully deductible contribution; between $79,000 and $89,000—partially deductible contribution; more than $89,000—contribution not deductible.
• Income Limits for Deductible IRA Contribution, single filers who are not covered by a retirement plan at work or married couples if neither spouse is covered by a retirement plan at work: None.
• Income Limits for Deductible IRA Contribution, married couples filing jointly, if contributor is covered by a retirement plan at work: Modified adjusted gross income under $126,000—fully deductible contribution; between $126,000 and $146,000—partially deductible contribution; more than $146,000—contribution not deductible.
• Income Limits for Deductible IRA Contributions, married couples filing jointly, if contributor is not covered by a retirement plan at work but spouse is: Modified adjusted gross income under $236,000—fully deductible contribution; between $236,000 and $246,000—partially deductible contribution; more than $246,000—contribution not deductible.
• Income Limits for Nondeductible IRA Contributions: None.
• Income Limits for IRA Conversions: None.

Employer-Sponsored Retirement Account Rules

• Contribution Limits for 401(k), 403(b), 457 plan, or Self-Employed 401(k) (Roth or Traditional): $23,500 under age 50; $31,000 for age 50 and older. People between 60 and 63 can make “super catch-up” contributions; Starting in 2025, they can invest $34,750, assuming their plans offer the option.
• Total 401(k) Contribution Limits, including employer (pretax, Roth, aftertax) and employee contributions and forfeitures: $70,000 if under age 50; $77,500 if 50-plus.
• Income Limits for 401(k), 403(b), 457 Plan: None, though annual compensation limits can come into play in certain situations.
• SEP IRA Contribution Limit: The lesser of 25% of compensation or $70,000.
• Saver’s Tax Credit, income limit, single filers: $39,500.
• Saver’s Tax Credit, income limit, married couples filing jointly: $79,000.

Health Savings Account Rules

• Health Savings Account Contribution Limit, single coverage: $4,300 (contributor under age 55); $5,300 (contributor 55-plus).
• Health Savings Account Contribution Limit, family coverage: $8,550 (contributor under age 55); $9,550 (contributor 55-plus).
• High-Deductible Health Plan Minimum Deductible, self-only coverage: $1,650.
• High-Deductible Health Plan Minimum Deductible, family coverage: $3,300.
• High-Deductible Health Plan Out-of-Pocket Maximum, self-only coverage: $8,300.
• High-Deductible Health Plan Out-of-Pocket Maximum, family coverage: $16,600.