2025 Federal Income Tax Brackets Explained
A complete guide to the 2025 federal income tax brackets, standard deduction, capital gains rates, and the difference between marginal and effective tax rates.
The IRS adjusts federal income tax brackets annually for inflation, and the 2025 brackets reflect modest increases from prior years. For single filers, the seven federal brackets range from 10% on the first $11,925 of taxable income up to 37% on income exceeding $626,350. Married couples filing jointly see roughly doubled thresholds across each bracket.
The 2025 bracket structure is: 10% (up to $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), and 37% (over $626,350) for single filers. Each rate applies only to the income within that range — this is the marginal bracket system.
Before applying these rates, most taxpayers reduce their income with the standard deduction. For 2025, the standard deduction for single filers is $15,750, meaning the first $15,750 of income is completely tax-free. Married couples filing jointly get $31,500. These amounts are higher for taxpayers age 65 or older.
Understanding marginal versus effective rates is crucial. Your marginal rate is the rate on your last dollar of income — the bracket you fall into. Your effective rate is total tax divided by total income. A single filer earning $100,000 might be in the 22% marginal bracket but have an effective federal rate around 15–17% after the standard deduction.
Example: A single filer with $80,000 of gross income takes the $15,750 standard deduction, leaving $64,250 in taxable income. Tax equals 10% on $11,925 ($1,192.50) plus 12% on $36,550 ($4,386) plus 22% on $15,775 ($3,470.50), for a total of about $9,049. The effective rate is roughly 11.3% of gross income.
Capital gains receive preferential treatment. Long-term capital gains (assets held over one year) are taxed at 0%, 15%, or 20% based on taxable income. For single filers in 2025: 0% applies up to $47,025, 15% from $47,026 to $518,900, and 20% above $518,900. Short-term gains are taxed as ordinary income at the full bracket rates.
High earners with significant investment income may also owe the Net Investment Income Tax (NIIT), a 3.8% surcharge on net investment income above $200,000 for single filers (or $250,000 for married filing jointly). This applies to capital gains, dividends, interest, and similar income.
State income taxes add another layer. The brackets above are federal only; most states impose their own income tax with separate brackets, deductions, and rules. Use the TaxMath calculator to combine federal and state rates and see your true combined effective rate for any state.