Individual Income Tax Planning
Adoption credit
| Adoption credit | 2024 | 2025 |
| Maximum credit | $16,810 | $17,280 |
| Phaseout threshold amount | $252,150 | $259,190 |
| Completed phaseout amount after |
$292,150 | $299,190 |
Alternative Minimum Tax (AMT)
| Maximum AMT exemption amount | 2024 | 2025 |
| Married filing jointly or surviving spouse | $133,300 | $137,000 |
| Single or head of household | $85,700 | $88,100 |
| Married filing separately | $66,650 | $68,500 |
| AMT income exemption phaseout threshold | 2024 | 2025 |
| Married filing jointly or surviving spouse | $1,218,700 | $1,252,700 |
| Single or head of household | $609,350 | $626,350 |
| Married filing separately | $609,350 | $626,350 |
| AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount) | 2024 | 2024 |
| All taxpayers except married filing separately | $232,600 | $239,100 |
| Married filing separately | $116,300 | $119,550 |
Charitable deductions
| Use of auto | 2024 | 2025 |
| Deductible standard mileage rate | $0.14 | $0.14 |
| Charitable fundraising “insubstantial benefit” limitation |
2024 | 2025 |
| Low-cost article (re: unrelated business income) | $13.20 | $13.60 |
| Gifts to donor in return for contribution | 2024 | 2025 |
| Token gift maximum cost1 | $13.20 | $13.60 |
| Minimum contribution amount1 | $66.00 | $68.00 |
| 2% threshold amount2 | $132 | $136 |
Child tax credit
| Amount of credit | 2024 | 2025 |
| Maximum credit per qualifying child | $2,000 | $2,000 |
| Nonrefundable credit for dependents who are not qualifying children | $500 | $500 |
| Phaseout — credit reduced by $50 for each $1,000 or fraction thereof of MAGI over (but not to be reduced below $2,000): |
2024 | 2025 |
| Married filing jointly or surviving spouse | N/A | N/A |
| Head of household | N/A | N/A |
| Single or married filing separately | N/A | N/A |
| Phaseout — any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over: |
2024 | 2025 |
| Married filing jointly | $400,000 | $400,000 |
| All other filing status | $200,000 | $200,000 |
| Refundability — up to specified percentage of earned income in excess of specified amount |
2024 | 2025 |
| Percentage | 15% | 15% |
| Amount | $2,500 | $2,500 |
| Maximum refundable amount of credit | $1,700 | $1,700 |
Classroom expenses of elementary and secondary school teachers
| Classroom expense deduction |
2024 | 2025 |
| Maximum above-the-line deduction |
$300 | $300 |
Earned income tax credit (EITC)
| Investment income limit | 2024 | 2025 |
| Excessive investment income limit (“disqualified income limit”) | $11,600 | $11,950 |
| Maximum amount of EITC per number of children |
2024 | 2025 |
| 0 children | $632 | $649 |
| 1 child | $4,213 | $4,328 |
| 2 children | $6,960 | $7,152 |
| 3 or more children | $7,830 | $8,046 |
| Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received) |
2024 | 2025 |
| 0 children | $8,260 | $8,490 |
| 1 child | $12,390 | $12,730 |
| 2 or more children | $17,400 | $17,880 |
| Threshold phaseout amount for joint filers per number of children |
2024 | 2025 |
| 0 children | $17,250 | $17,730 |
| 1 child | $29,640 | $30,470 |
| 2 children | $29,640 | $30,470 |
| 3 or more children | $29,640 | $30,470 |
| Threshold phaseout amount for other filers per number of children |
2024 | 2025 |
| 0 children | $10,330 | $10,620 |
| 1 child | $22,720 | $23,350 |
| 2 children | $22,720 | $23,350 |
| 3 or more children | $22,720 | $23,350 |
| Completed phaseout amount for joint filers per number of children |
2024 | 2025 |
| 0 children | $25,511 | $26,214 |
| 1 child | $56,004 | $57,554 |
| 2 children | $62,688 | $64,430 |
| 3 or more children | $66,819 | $68,675 |
| Completed phaseout amount for other filers per number of children |
2024 | 2025 |
| 0 children | $18,591 | $19,104 |
| 1 child | $49,084 | $50,434 |
| 2 children | $55,768 | $57,310 |
| 3 or more children | $59,899 | $61,555 |
Expatriation
| Covered expatriate | 2024 | 2025 |
| An individual with “average annual net income tax” of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) |
$200,000 | $206,000 |
| IRC §877A(3) exclusion amount |
$866,000 | $890,000 |
Foreign earned income
| Amount excluded from income |
2024 | 2025 |
| Exclusion amount | $126,500 | $130,000 |
Itemized deductions
| Phaseout threshold | 2024 | 2025 |
| Married filing jointly | N/A | N/A |
| Head of household | N/A | N/A |
| Unmarried | N/A | N/A |
| Married filing separately | N/A | N/A |
Kiddie tax
| Unearned income limit | 2024 | 2025 |
| Amount exempt from tax | $1,300 | $1,350 |
| Additional amount taxed at child’s rate |
$1,300 | $1,350 |
| Unearned income over this amount generally taxed at parents’ tax rates |
$2,600 | $2,700 |
| Parent’s election | 2024 | 2025 |
| Election to include child’s income on parent’s return — child’s gross income requirement |
$1,300 – $13,000 | $1,350 – $13,500 |
| AMT | 2024 | 2025 |
| AMT exemption for child subject to kiddie tax |
Lesser of $9,250 + child’s earned income or $85,700 |
Lesser of $9,550 + child’s earned income or $88,100 |
Medicare tax (additional payroll tax and unearned income
contribution tax)
| Payroll tax | 2024 | 2025 |
| Additional Medicare payroll tax (and self-employment tax) percentage rate |
0.90% | 0.90% |
| Applies to wages/self-employment income exceeding |
2024 | 2025 |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |
| Tax on unearned income | 2024 | 2025 |
| Unearned income Medicare contribution tax rate |
3.80% | 3.80% |
| Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding |
2024 | 2025 |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |
Nanny tax
| Compensation threshold | 2024 | 2025 |
| Domestic employee coverage threshold |
$2,700 | $2,800 |
Personal exemption amount
| Amount | 2024 | 2025 |
| Personal exemption amount | N/A | N/A |
| Married filing jointly | 2024 | 2025 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
| Head of household | 2024 | 2025 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
| Unmarried | 2024 | 2025 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
| Married filing separately | 2024 | 2025 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
“Saver’s Credit”
| Elective Deferrals and IRA or ABLE Contributions by Certain Individuals |
2024 | 2025 |
| Maximum credit amount | $1,000 | $1,000 |
| Applicable percentage of 50% applies to AGI | 2024 | 2025 |
| Joint return | $0 – $46,000 | $0 – $47,500 |
| Head of household | $0 – $34,500 | $0 – $35,625 |
| Other | $0 – $23,000 | $0 – $23,750 |
| Applicable percentage of 20% applies to AGI | 2024 | 2025 |
| Joint return | $46,001 – $50,000 | $47,501 – $51,000 |
| Head of household | $34,501 – $37,500 | $35,626 – $38,250 |
| Other | $23,001 – $25,000 | $23,751 – $25,500 |
| Applicable percentage of 10% applies to AGI | 2024 | 2025 |
| Joint return | $50,001 – $76,500 | $51,001 – $79,000 |
| Head of household | $37,501 – $57,375 | $38,251 – $59,250 |
| Other | $25,001 – $38,250 | $25,501 – $39,500 |
| Applicable percentage of 0% applies to AGI | 2022 | 2023 |
| Joint return | Over $76,500 | Over $79,000 |
| Head of household | Over $57,375 | Over $59,250 |
| Other | Over $38,250 | Over $39,500 |
Standard deductions
| Amounts | 2024 | 2025 |
| Married filing jointly or surviving spouse | $29,200 | $30,000 |
| Head of household | $21,900 | $22,500 |
| Unmarried | $14,600 | $15,000 |
| Married filing separately | $14,600 | $15,000 |
| Dependent–Standard deduction cannot exceed the greater of: |
$1,300 or $450 + earned income | $1,350 or $450 + earned income |
| Additional deduction for aged or blind (single or head of household) |
$1,950 | $2,000 |
| Additional deduction for aged or blind (all other filing statuses) |
$1,550 | $1,600 |
Standard mileage rates
| Applicable rates | 2024 | 2025 |
| Use of auto for business purposes (cents per mile) |
$0.67 | TBD |
| Use of auto for medical purposes (cents per mile) | $0.21 | TBD |
| Use of auto for moving purposes (cents per mile) | $0.21 | TBD |
2025 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
Single taxpayers
| If taxable income is: | Your tax is: |
| Not over $11,925 | 10% of taxable income |
| Over $11,925 to $48,475 | $1,192.50 + 12% of the excess over $11,925 |
| Over $48,475 to $103,350 | $5,578.50 + 22% of the excess over $48,475 |
| Over $103,350 to $197,300 | $17,651 + 24% of the excess over $103,350 |
| Over $197,300 to $250,525 | $40,199 + 32% of the excess over $197,300 |
| Over $250,525 to $626,350 | $57,231 + 35% of the excess over $250,525 |
| Over $626,350 | $188,769.75 + 37% of the excess over $626,350 |
Married filing jointly and surviving spouses
| If taxable income is: | Your tax is: |
| Not over $23,850 | 10% of taxable income |
| Over $23,850 to $96,950 | $2,385 + 12% of the excess over $23,850 |
| Over $96,950 to $206,700 | $11,157 + 22% of the excess over $96,950 |
| Over $206,700 to $394,600 | $35,302 + 24% of the excess over $206,700 |
| Over $394,600 to $501,050 | $80,398 + 32% of the excess over $394,600 |
| Over $501,050 to $751,600 | $114,462 + 35% of the excess over $501,050 |
| Over $751,600 | $202,154.50 + 37% of the excess over $751,600 |
Married individuals filing separately
| If taxable income is: | Your tax is: |
| Not over $11,925 | 10% of taxable income |
| Over $11,925 to $48,475 | $1,192.50 + 12% of the excess over $11,925 |
| Over $48,475 to $103,350 | $5,578.50 + 22% of the excess over $48,475 |
| Over $103,350 to $197,300 | $17,651 + 24% of the excess over $103,350 |
| Over $197,300 to $250,525 | $40,199 + 32% of the excess over $197,300 |
| Over $250,525 to $375,800 | $57,231 + 35% of the excess over $250,525 |
| Over $375,800 | $101,077.25 + 37% of the excess over $375,800 |
Heads of household
| If taxable income is: | Your tax is: |
| Not over $17,000 | 10% of taxable income |
| Over $17,000 to $64,850 | $1,700 + 12% of the excess over $17,000 |
| Over $64,850 to $103,350 | $7,442 + 22% of the excess over $64,850 |
| Over $103,350 to $197,300 | $15,912 + 24% of the excess over $103,350 |
| Over $197,300 to $250,500 | $38,460 + 32% of the excess over $197,300 |
| Over $250,500 to $626,350 | $55,484 + 35% of the excess over $250,500 |
| Over $626,350 | $187,031.50 + 37% of the excess over $626,350 |
Trusts and estates
| If taxable income is: | Your tax is: |
| Not over $3,150 | 10% of taxable income |
| Over $3,150 to $11,450 | $315 + 24% of the excess over $3,150 |
| Over $11,450 to $15,650 | $2,307 + 35% of the excess over $11,450 |
| Over $15,650 | $3,777 + 37% of the excess over $15,650 |
2024 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
Single taxpayers
| If taxable income is: | Your tax is: |
| Not over $11,600 | 10% of taxable income |
| Over $11,600 to $47,150 | $1,160 + 12% of the excess over $11,600 |
| Over $47,150 to $100,525 | $5,426 + 22% of the excess over $47,150 |
| Over $100,525 to $191,950 | $17,168.50 + 24% of the excess over $100,525 |
| Over $191,950 to $243,725 | $39,110.50 + 32% of the excess over $191,950 |
| Over $243,725 to $609,350 | $55,678.50 + 35% of the excess over $243,725 |
| Over $609,350 | $183,647.25 + 37% of the excess over $609,350 |
Married filing jointly and surviving spouses
| If taxable income is: | Your tax is: |
| Not over $23,200 | 10% of taxable income |
| Over $23,200 to $94,300 | $2,320 + 12% of the excess over $23,200 |
| Over $94,300 to $201,050 | $10,852 + 22% of the excess over $94,300 |
| Over $201,050 to $383,900 | $34,337 + 24% of the excess over $201,050 |
| Over $383,900 to $487,450 | $78,221 + 32% of the excess over $383,900 |
| Over $487,450 to $731,200 | $111,357 + 35% of the excess over $487,450 |
| Over $731,200 | $196,669.50 + 37% of the excess over $731,200 |
Married individuals filing separately
| If taxable income is: | Your tax is: |
| Not over $11,600 | 10% of taxable income |
| Over $11,600 to $47,150 | $1,160 + 12% of the excess over $11,600 |
| Over $47,150 to $100,525 | $5,426 + 22% of the excess over $47,150 |
| Over $100,525 to $191,950 | $17,168.50 + 24% of the excess over $100,525 |
| Over $191,950 to $243,725 | $39,110.50 + 32% of the excess over $191,950 |
| Over $243,725 to $365,600 | $55,678.50 + 35% of the excess over $243,725 |
| Over $365,600 | $93,334.75 + 37% of the excess over $365,600 |
Heads of household
| If taxable income is: | Your tax is: |
| Not over $16,550 | 10% of taxable income |
| Over $16,550 to $63,100 | $1,655 + 12% of the excess over $16,550 |
| Over $63,100 to $100,500 | $7,241 + 22% of the excess over $63,100 |
| Over $100,500 to $191,950 | $15,469 + 24% of the excess over $100,500 |
| Over $191,950 to $243,700 | $37,417 + 32% of the excess over $191,950 |
| Over $243,700 to $609,350 | $53,977 + 35% of the excess over $243,700 |
| Over $609,350 | $181,954.50 + 37% of the excess over $609,350 |
Trusts and estates
| If taxable income is: | Your tax is: |
| Not over $3,100 | 10% of taxable income |
| Over $3,100 to $11,150 | $310 + 24% of the excess over $3,100 |
| Over $11,150 to $15,200 | $2,242 + 35% of the excess over $11,150 |
| Over $15,200 | $3,659.50 + 37% of the excess over $15,200 |
Business Planning
Adoption Assistance Programs
| Adoption assistance | 2024 | 2025 |
| Maximum amount that can be excluded from employee’s gross income | $16,810 | $17,280 |
| Phaseout threshold amount | $252,150 | $259,190 |
| Completed phaseout amount after | $292,150 | $299,190 |
Earnings subject to FICA taxes (taxable wage base)
| FICA tax | 2024 | 2025 |
| Maximum annual earnings subject to Social Security taxes |
$168,600 | $176,100 |
| Social Security and Medicare combined tax rate |
15.30%1 | 15.30%1 |
| OASDI portion (Social Security) |
12.40% | 12.40% |
| Hospital Insurance portion (Medicare) |
2.90%1 | 2.90%1 |
Health insurance deduction for self-employed
| Health insurance premiums | 2024 | 2025 |
| Deduction for health insurance premiums paid by self-employed persons |
100% | 100% |
Qualified transportation fringe benefits
| Qualified transportation fringe benefits |
2024 | 2025 |
| Commuter vehicles and transit pass monthly exclusion amount |
$315 | $325 |
| Qualified parking monthly exclusion amount |
$315 | $325 |
| Qualified bicycle commuting reimbursement fringe benefit (monthly amount) |
N/A | N/A |
Section 179 expensing
| Section 179 expensing | 2024 | 2025 |
| Maximum amount that may be deducted under IRC Section 179 |
$1,220,000 | $1,250,000 |
| Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount |
$3,050,000 | $3,130,000 |
Small business tax credit for providing health-care coverage
| Amount of credit | 2024 | 2025 |
| Maximum credit percentage | 50% | 50% |
| Partial credit | 2024 | 2025 |
| Number of full-time equivalent employees (FTEs) fewer than: |
25 | 25 |
| Maximum average annual wages less than: |
$64,800 | $66,600 |
| Full credit | 2024 | 2025 |
| Number of full-time equivalent employees (FTEs) no more than: |
10 | 10 |
| Maximum average annual wages less than or equal to: |
$32,400 | $33,300 |
Special additional first-year depreciation allowance
| Bonus depreciation | 2024 | 2025 |
| “Bonus” depreciation for qualified property acquired and placed in service during specified time periods |
60% | 40% |
Standard mileage rate (per mile)
| Business use of auto | 2024 | 2025 |
| Standard mileage rate (per mile) | $0.67 | TBD |
Education Planning
American Opportunity and Lifetime Learning Credits
| Education credits | 2024 | 2025 |
| American Opportunity and Lifetime Learning Credits | $2,500 | $2,500 |
| Maximum Lifetime Learning credit |
$2,000 | $2,000 |
| MAGI phaseout range for American Opportunity credit |
2024 | 2025 |
| Single–phaseout threshold amount |
$80,000 | $80,000 |
| Single–completed phaseout amount after |
$90,000 | $90,000 |
| Married filing jointly–phaseout threshold amount |
$160,000 | $160,000 |
| Married filing jointly–completed phaseout amount after |
$180,000 | $180,000 |
| MAGI phaseout range for Lifetime Learning credit |
2024 | 2025 |
| Single — phaseout threshold amount | $80,000 | $80,000 |
| Single — completed phaseout amount after | $90,000 | $90,000 |
| Married filing jointly — phaseout threshold amount | $160,000 | $160,000 |
| Married filing jointly — completed phaseout amount after | $180,000 | $180,000 |
Coverdell education savings accounts
| Coverdell ESAs | 2024 | 2025 |
| Annual contribution limit | $2,000 | $2,000 |
| MAGI phaseout range for Coverdell education savings accounts |
2022 | 2023 |
| Single–phaseout threshold amount |
$95,000 | $95,000 |
| Single–completed phaseout amount after |
$110,000 | $110,000 |
| Married filing jointly–phaseout threshold amount |
$190,000 | $190,000 |
| Married filing jointly–completed phaseout threshold amount |
$220,000 | $220,000 |
Deduction for qualified higher education expenses
| Higher education expenses | 2024 | 2025 |
| Maximum deduction | N/A | N/A |
| MAGI maximum for full $4,000 deduction | 2024 | 2025 |
| Single | N/A | N/A |
| Married filing jointly | N/A | N/A |
| MAGI range for $2,000 deduction | 2024 | 2025 |
| Single — MAGI greater than this amount: | N/A | N/A |
| Single — MAGI does not exceed this amount: | N/A | N/A |
| Married filing jointly — MAGI greater than this amount: | N/A | N/A |
| Married filing jointly — MAGI does not exceed this amount: | N/A | N/A |
Deduction for student loan interest
| Education loan interest deduction | 20224 | 2025 |
| Maximum deduction for interest paid on qualified education loans |
$2,500 | $2,500 |
| MAGI phaseout range | 2024 | 2025 |
| Single — phaseout threshold amount | $80,000 | $85,000 |
| Single — completed phaseout amount after | $95,000 | $100,000 |
| Married filing jointly — phaseout threshold amount | $165,000 | $170,000 |
| Married filing jointly — completed phaseout amount after | $195,000 | $200,000 |
Gift tax exclusion
| Gift tax | 2022 | 2023 |
| Annual gift tax exclusion–single individual |
$18,000 | $19,000 |
| Annual gift tax exclusion–joint gift |
$36,000 | $38,000 |
| Lump-sum gift to 529 plan–single individual |
$90,000 | $95,000 |
| Lump-sum gift to 529 plan–single individual |
$180,000 | $190,000 |
Kiddie tax
| Kiddie tax | 2024 | 2025 |
| Children’s unearned income over this amount generally taxed at parents’ tax rates |
$2,600 | $2,700 |
U.S. savings bonds interest exclusion for college expenses
| Joint returns | 2024 | 2025 |
| Phaseout threshold for joint returns |
$145,200 | $149,250 |
| Completed phaseout amount after |
$158,650 | $167,800 |
| Other returns | 2022 | 2023 |
| Phaseout threshold for other returns | $96,800 | $99,500 |
| Completed phaseout amount after | $111,800 | $114,500 |
Protection Planning
Eligible long-term care premium deduction limits:
| LTC premium deduction limits |
2024 | 2025 |
| Age 40 or under | $470 | $480 |
| Age 41-50 | $880 | $900 |
| Age 51-60 | $1,760 | $1,800 |
| Age 61-70 | $4,710 | $4,810 |
| Over age 70 | $5,880 | $6,020 |
Per diem limit:
| LTC periodic payments | 2024 | 2025 |
| Periodic payments for qualified long-term care insurance/certain life insurance |
$410 | $420 |
Archer Medical Savings Accounts
| High deductible health plan–self-only coverage |
2024 | 2025 |
| Annual deductible — minimum | $2,800 | $2,850 |
| Annual deductible — maximum | $4,150 | $4,300 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $5,550 | $5,700 |
| High deductible health plan–family coverage |
2024 | 2025 |
| Annual deductible — minimum | $5,550 | $5,700 |
| Annual deductible — maximum | $8,350 | $8,550 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $10,200 | $10,500 |
Flexible spending account (FSA) for health care
| Health care FSAs | 2024 | 2025 |
| Maximum salary reduction contribution |
$3,200 | $3,300 |
Health Savings Accounts (HSAs)
| Annual contribution limit | 2024 | 2025 |
| Self-only coverage | $4,150 | $4,300 |
| Family coverage | $8,300 | $8,550 |
| High deductible health plan — self-only coverage |
2024 | 2025 |
| Annual deductible — minimum | $1,600 | $1,650 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $8,050 | $8,300 |
| High deductible health plan — family coverage |
2024 | 2025 |
| Annual deductible — minimum | $3,200 | $3,300 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $16,100 | $16,600 |
| Catch-up contributions | 2024 | 2025 |
| Annual catch-up contribution limit for individuals age 55 or older |
$1,000 | $1,000 |
Estate Planning
| Key indexed figures | 2024 | 2025 |
| Annual gift exclusion: | $18,000 | $19,000 |
| Gift and estate tax applicable exclusion amount: | $13,610,000 + DSUEA1 | $13,990,000 + DSUEA1 |
| Noncitizen spouse annual gift exclusion: | $185,000 | $190,000 |
| Generation-skipping transfer (GST) tax exemption: |
$13,610,0002 | $13,990,0002 |
| Special use valuation limit (qualified real property in decedent’s gross estate): | $1,390,000 | $1,420,000 |
2024 and 2025 gift and estate tax rate schedule
| Taxable Estate | Tentative Tax Equals | Plus | Of Amount Over |
| 0 – $10,000 | $0 | 18% | $0 |
| $10,000 – $20,000 | $1,800 | 20% | $10,000 |
| $20,000 – $40,000 | $3,800 | 22% | $20,000 |
| $40,000 – $60,000 | $8,200 | 24% | $40,000 |
| $60,000 – $80,000 | $13,000 | 26% | $60,000 |
| $80,000 – $100,000 | $18,200 | 28% | $80,000 |
| $100,000 – $150,000 | $23,800 | 30% | $100,000 |
| $150,000 – $250,000 | $38,800 | 32% | $150,000 |
| $250,000 – $500,000 | $70,800 | 34% | $250,000 |
| $500,000 – $750,000 | $155,800 | 37% | $500,000 |
| $750,000 – $1,000,000 | $248,300 | 39% | $750,000 |
| $1,000,000 + | $345,800 | 40% | $1,000,000 |
| Credit shelter amount $13,610,000 in 2024 and $13,990,000 in 2025 |
Unified credit amount $5,389,800 in 2024 and $5,541,800 in 2025 | ||
Government Benefits
Social Security
| Social Security Cost-of-living adjustment (COLA) |
2024 | 2025 |
| For Social Security and Supplemental Security Income (SSI) beneficiaries |
3.20% | 2.50% |
| Tax rate — Employee | 2024 | 2025 |
| FICA tax — Employee | 7.65% | 7.65% |
| Social Security (OASDI) portion of tax |
6.20% | 6.20% |
| Medicare (HI) portion of tax | 1.45%1 | 1.45%1 |
| Tax rate — Self-Employed | 2024 | 2025 |
| Self-Employed | 15.30% | 15.30% |
| Social Security (OASDI) portion of tax | 12.40% | 12.40% |
| Medicare (HI) portion of tax | 2.90%1 | 2.90%1 |
| Maximum taxable earnings | 2024 | 2025 |
| Social Security (OASDI only) | $168,600 | $176,100 |
| Medicare (HI only) | No limit | No limit |
| Quarter of coverage | 2024 | 2025 |
| Earnings required | $1,730 | $1,810 |
| Retirement earnings test–exempt amounts–Under full retirement age–Benefits reduced by $1 for each $2 earned above: |
2024 | 2025 |
| Yearly figure | $22,320 | $23,400 |
| Monthly figure | $1,860 | $1,950 |
| Retirement earnings test–exempt amounts–Year individual reaches full retirement age–Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age): |
2024 | 2025 |
| Yearly figure | $59,520 | $62,160 |
| Monthly figure | $4,960 | $5,180 |
| Retirement earnings test–exempt amounts–Beginning the month individual attains full retirement age |
2024 | 2025 |
| No limit on earnings | No limit on earnings |
| Social Security disability thresholds |
2024 | 2025 |
| Substantial gainful activity (SGA) for the sighted (monthly figure) |
$1,550 | $1,620 |
| Substantial gainful activity for the blind (monthly figure) |
$2,590 | $2,700 |
| Trial work period (TWP) (monthly figure) |
$1,110 | $1,160 |
| SSI federal payment standard |
2024 | 2025 |
| Individual (monthly figure) | $943 | $967 |
| Couple (monthly figure) | $1,415 | $1,450 |
| SSI resource limits | 2024 | 2025 |
| Individual | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 |
| SSI student exclusion limits | 2024 | 2025 |
| Monthly limit | $2,290 | $2,350 |
| Annual limit | $9,230 | $9,460 |
| Maximum Social Security benefit |
2024 | 2025 |
| Worker retiring at full retirement age (monthly figure) |
$3,822 | $4,018 |
| Formula for Monthly Primary Insurance Amount (PIA) |
2024 | 2025 |
| (90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y) |
X=$1,174 Y=$7,078 | X=$1,226 Y=$7,391 |
Medicare
| Medicare monthly premium amounts–Part A (hospital insurance) premium |
2024 | 2025 |
| Individuals with 40 or more quarters of Medicare-covered employment |
$0 | $0 |
| Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance |
Up to $505 | Up to $518 |
| Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file an individual income tax return with income that is: |
|||
| 2024 | 2025 | 2024 | 2025 |
| Less than or equal to $103,000 |
Less than or equal to $106,000 |
$174.702 | $185.002 |
| $103,001 – $129,000 | $106,001 – $133,000 | $244.60 | $259.00 |
| $129,001 – $161,000 | $133,001 – $167,000 | $349.40 | $370.00 |
| $161,001 – $193,000 | $167,001 – $200,000 | $454.20 | $480.90 |
| $193,001 – $499,999 | $200,001 – $499,999 | $559.00 | $591.90 |
| $500,000 and above | $500,000 and above | $594.00 | $628.90 |
| Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file a joint income tax return with income that is: |
|||
| 2024 | 2025 | 2024 | 2025 |
| Less than or equal to $206,000 |
Less than or equal to $212,000 |
$174.702 | $185.002 |
| $206,001 – $258,000 | $212,001 – $266,000 | $244.60 | $259.00 |
| $258,001 – $322,000 | $266,001 – $334,000 | $349.40 | $370.00 |
| $322,001 – $386,000 | $334,001 – $400,000 | $454.20 | $480.90 |
| $386,001 – $749,999 | $400,001 – $749,999 | $559.00 | $591.90 |
| $750,000 and above | $750,000 and above | $594.00 | $628.90 |
| Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is: |
|||
| 2024 | 2025 | 2024 | 2025 |
| Less than or equal to $103,000 |
Less than or equal to $106,000 |
$174.702 | $185.002 |
| $103,001 – $396,999 | $106,001 – $393,999 | $559.00 | $591.90 |
| $397,000 and above | $394,000 and above | $594.00 | $628.90 |
| Original Medicare plan deductible and coinsurance amounts–Part A (hospital insurance) |
2024 | 2025 |
| Deductible per benefit period | $1,632 | $1,676 |
| Coinsurance per day for 61st to 90th day of each benefit period |
$408 | $419 |
| Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable) |
$816 | $838 |
| Original Medicare plan deductible and coinsurance amounts |
2024 | 2025 |
| Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period |
$204 | $209.50 |
| Original Medicare plan deductible and coinsurance amounts–Part B (medical insurance) annual deductible |
2024 | 2025 |
| Individual pays 20 percent of the Medicare-approved amount for services after deductible is met |
$240 | $257 |
Medicaid
| Income threshold | 2024 | 2025 |
| Monthly income threshold for income-cap states (“300 percent cap limit”) |
$2,829 | $2,901 |
| Monthly maintenance needs allowance for at-home spouse |
2024 | 2025 |
| Minimum3 | $2,465.00 | $2,555.00 |
| Maximum | $3.853.50 | $3,948.00 |
| Community spousal resource allowance | 2024 | 2025 |
| Minimum | $30,828 | $31,584 |
| Maximum | $154,140 | $157,920 |
Retirement Planning
Employee/individual contribution limits
| Elective deferral limits | 2024 | 2025 |
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1 [Includes Roth 401(k) and Roth 403(b) contributions] |
Lesser of $23,000 or 100% of participant’s compensation |
Lesser of $23,500 or 100% of participant’s compensation |
| SIMPLE 401(k) plans and SIMPLE IRA plans1 |
Lesser of $16,000 or 100% of participant’s compensation |
Lesser of $16,500 or 100% of participant’s compensation |
| SIMPLE 401(k) plans and SIMPLE IRA plans with 25 or fewer employees (or those that elect these higher limits) |
Lesser of $17,600 or 100% of participant’s compensation |
Lesser of $17,600 or 100% of participant’s compensation |
| Starter 401(k) plans and safe-harbor 403(b) plans1 |
Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older) |
Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older) |
| IRA contribution limits | 2024 | 2025 |
| Traditional IRAs | Lesser of $7,000 or 100% of earned income |
Lesser of $7,000 or 100% of earned income |
| Roth IRAs | Lesser of $7,000 or 100% of earned income |
Lesser of $7,000 or 100% of earned income |
| Additional “catch-up” limits (individuals age 50 or older) |
2024 | 2025 |
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs2 |
$7,500 | $7,500 |
| *Catch-up limit if age 60 to 63 | N/A | $11,250 |
| SIMPLE 401(k) plans and SIMPLE IRA plans |
$3,500 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit) |
$3,500 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit) |
| *Catch-up limit if age 60 to 63 | N/A | $5,250 |
| IRAs (traditional and Roth) | $1,000 | $1,000 |
Employer contribution/benefit3 limits
| Defined benefit plan limits | 2024 | 2025 |
| Annual contribution limit per participant | No predetermined limit. Contributions based on amount needed to fund promised benefits |
No predetermined limit. Contributions based on amount needed to fund promised benefits. |
| Annual benefit limit per participant | Lesser of $275,000 or 100% of average compensation for highest 3 consecutive years |
Lesser of $280,000 or 100% of average compensation for highest 3 consecutive years |
| Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans] |
2024 | 2025 |
| Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans) |
Lesser of $69,000 or 100% (25% for SEP) of participant’s compensation |
Lesser of $70,000 or 100% (25% for SEP) of participant’s compensation |
| Maximum tax-deductible employer contribution[not applicable to 403(b) plans] |
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans |
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans |
| Pension-linked emergency savings accounts (maximum amount attributable to employee deferrals) |
$2,500 | $2,500 |
Compensation limits/thresholds
| Retirement plan compensation limits |
2024 | 2025 |
| Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs) |
$345,000 | $330,000 |
| Compensation threshold used to determine a highly compensated employee |
$155,000 (when 2024 is the look-back year) |
$160,000 (when 2025 is the look-back year) |
| Compensation threshold used to determine a key employee in a top-heavy plan |
$1 for more-than-5% owners, $220,000 for officers, $150,000 for more-than-1% owners |
$$1 for more-than-5% owners, $230,000 for officers, $150,000 for more-than-1% owners |
| Compensation threshold used to determine a qualifying employee under a SIMPLE plan |
$5,000 | $5,000 |
| Compensation threshold used to determine a qualifying employee under a SEP plan |
$750 | $750 |
| Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as: |
2024 | 2025 |
| Single | $77,000 – $87,000 | $79,000 – $89,000 |
| Married filing jointly | $123,000 – $143,000 | $126,000 – $146,000 |
| Married filing separately | $0 – $10,000 | $0 – $10,000 |
| Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a: |
2024 | 2025 |
| Joint return with a spouse who is covered by an employer-sponsored retirement plan |
$230,000 – $240,000 | $236,000 – $246,000 |
| Roth IRA compensation limits — Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as: |
2024 | 2025 |
| Single | $146,000 – $161,000 | $150,000 – $165,000 |
| Married filing jointly | $230,000 – $240,000 | $236,000 – $246,000 |
| Married filing separately | $0 – $10,000 | $0 – $10,000 |
Qualified charitable distribution
| 2024 | 2025 | |
| Annual amount not includible in gross income |
$105,000 | $108,000 |
| Annual amount not includible in gross income |
$53,000 | $54,000 |
Investment Planning
Maximum tax on long-term capital gains and qualified dividends
| 0% rate applies (taxable income thresholds) |
2024 | 2025 |
| Single | Up to $47,025 | Up to $48,350 |
| Married filing jointly | Up to $94,050 | Up to $96,700 |
| Married filing separately | Up to $47,025 | Up to $48,350 |
| Head of household | Up to $63,000 | Up to $64,750 |
| 15% rate applies (taxable income thresholds) |
2024 | 2025 |
| Single | $47,025 to $518,900 | $48,350 to $533,400 |
| Married filing jointly | $94,050 to $583,750 | $96,700 to $600,050 |
| Married filing separately | $47,025 to $291,850 | $48,350 to $300,000 |
| Head of household | $63,000 to $551,350 | $64,750 to $566,700 |
| 20% rate applies (taxable income thresholds) |
2024 | 2025 |
| Single | Over $518,900 | Over $533,400 |
| Married filing jointly | Over $583,750 | Over $600,050 |
| Married filing separately | Over $291,850 | Over $300,000 |
| Head of household | Over $551,350 | Over $566,700 |
Unearned income Medicare contribution tax (“net investment
income tax”)
| Amount of tax | 2024 | 2025 |
| Tax percentage | 3.80% | 3.80% |
| Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding: |
2024 | 2025 |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |