You may have just started thinking about your 2024 taxes due next April, but the Internal Revenue Service (IRS) has already announced changes for the 2025 tax year that will affect how you file in 2026.

Here’s how the 2025 changes compare to the current rules:

How Tax Brackets and Standard Deduction Will Change

To keep up with inflation, the IRS increased the amounts. standard deduction, Alternative Minimum Tax (AMT) and Earned Income Tax Creditsas well as many other items.

For 2025, the Standard Deduction will increase by $400 to $15,000 for single and married individuals filing separately and $30,000 for married couples filing jointly. The AMT exemption threshold for unmarried taxpayers will increase from $85,700 to $88,100, and for married taxpayers it will increase by $3,700 to $137,000. Earned income tax credits are also expected to increase by $216.

Tax brackets were also adjusted taxpayers would therefore pay the same proportion of their income regardless of changes in inflation. Your income won’t be taxed at the higher rate unless you get a 2.8% raise next year.

Some People May Contribute More to Retirement Plans Next Year

individuals 401(k) Because the contribution cap has been increased, the account will be able to contribute $500 more to retirement plans. Individual Retirement Account (IRA) stay the same

capture contribution The limit that allows individuals over the age of 50 to make higher additional contributions to their retirement accounts remains the same. But starting in 2025, individuals ages 60 to 63 can contribute up to $11,250; this is $3,750 higher than other catch-up contributions.