The Internal Revenue Service (IRS) announced the tax year 2025 annual inflation adjustments for many tax provisions. Click here to view the full list. Here’s a summary of three provisions that may impact homeowners and homebuyers:
STANDARD DEDUCTION
- $30,000: for married couples filing jointly for the tax year 2025. This is up from $29,200 in 2024.
- $15,000: for single taxpayers and married individuals filing separately. This is from $14,600 in 2024.
- $22,500: for heads of households. This is up from $21,900 in 2024.
GIFT TAX EXCLUSION
- $19,000: annual gift tax exclusion for 2025. This is up from $18,000 in 2024.
- $13,990,000: lifetime exclusion for 2025. This is up from $13,610,000 in 2024.
MARGINAL TAX BRACKETS
- 37%: for incomes greater than $626,350 ($751,600 for married couples filing jointly)
- 35%: for incomes over $250,525 ($501,050 for married couples filing jointly)
- 32%: for incomes over $197,300 ($394,600 for married couples filing jointly)
- 24%: for incomes over $103,350 ($206,700 for married couples filing jointly)
- 22%: for incomes over $48,475 ($96,950 for married couples filing jointly)
- 12%: for incomes over $11,925 ($23,850 for married couples filing jointly)
- 10%: for incomes of $11,925 or less ($23,850 or less for married couples filing jointly)
PLEASE NOTE: THIS OVERVIEW IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE ABOUT YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS REVENUE PROCEDURE 2024-40.