The IRS will be releasing the 2025 Tax Brackets to the public very soon and United States citizens may be in luck in many cases. However, it is true that in other cases this change in the Tax Brackets may not be as beneficial.
The date chosen by the IRS in most years is Fall, so we still have to wait a bit to know the official figures. Still, experts talk about forecasts and these experts are usually right.
Ultimately, these forecasts are based on the inflation that the IRS routinely uses to calculate each year’s Tax Brackets. So with inflation for this year 2024 in mind, we can see with little room for error what the Tax Brackets will be for next year 2025.
What will be the IRS Tax Brackets for 2025?
Most likely we will find ourselves with tax brackets and other provisions adjusted to 2.8% during the tax year next year 2025. This data comes directly from information offered by experts Bloomberg Tax and Wolters Kluwer. Although it is true that the adjustment would be the lowest in the last three years, it is also true that inflation is currently being lower.
As far as tax brackets are concerned, there is something to keep in mind. Thanks to adjusting tax brackets from inflation we find that the United States avoids the so-called “Bracket creep”. Undoubtedly, avoiding this at all costs is a good idea, since by adjusting the cost of living some citizens are pushed into a different tax bracket.
By changing the tax bracket we find that the Tax Bracket is fairer, so the IRS still gets tax money but citizens are not forced to pay more tax than they can actually afford.
Thus, individual tax rates will be:
- 10% – $0-$11,925
- 12% – $11,926-$48,475
- 22% – $48,476-$103,350
- 24% – $103,351-$197,300
- 32% – $197,301-$250,525
- 35% – $250,526-$626,350
- 37% – $626,351 and up
Depending on the citizen’s income he/she will have to pay one of these percentages to the IRS in taxes. The main change comes in that in this case a citizen collecting $48,000 or less has to pay 12%, while in 2024 the same citizen had to pay 22% in taxes.
Remember that we are talking about situations where the citizen makes an individual IRS Tax Return. Also, we do not have official figures either, although it is certain that we are likely to have these figures for this situation about the Tax Bracket.