What is the tax bracket for married couples filing jointly in 2025?

According to Marca, The IRS has released its annual adjustments for tax year 2025, bringing some important changes that married couples filing jointly should pay attention to. Let’s break down what these adjustments mean for your tax situation in a friendly and easy-to-understand way.

New Tax Brackets for 2025

Starting with the tax brackets, for 2025, the 10% tax bracket for married couples filing jointly will rise to $23,850, up from $23,200 in 2024. This means that if your taxable income is below this threshold, you’ll only pay 10% on that portion of your income. Here’s how the other tax brackets are structured:

• 12% tax rate: Applies to income over $23,850 up to $96,950.
• 22% tax rate: Applies to income from $96,950 to $171,050.
• 24% tax rate: Applies to income between $171,050 and $394,600.
• 32% tax rate: Applies to income from $394,600 to $501,050.
• 35% tax rate: Applies to income between $501,050 and $751,600.
• 37% tax rate: Kicks in for those making over $751,600.

Standard Deduction Increase

Another significant change is in the standard deduction. For married couples filing jointly, the standard deduction will increase to $30,000, up from $29,200 in 2024. This adjustment is an excellent way to reduce your taxable income. For example, if you and your spouse earn $100,000, applying that standard deduction means you’ll only be taxed on $70,000 of your income.

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Earned Income Tax Credit Boost

Additionally, the Earned Income Tax Credit (EITC) is getting a boost for 2025. Qualifying families with three or more children can claim a maximum credit of $8,046, an increase from $7,830 in 2024. This credit can significantly affect your tax bill and could even result in a refund if you qualify.

Conclusion

With these updates in mind, you’ll be better prepared for tax season. Understanding your tax bracket and being aware of these deductions can make a big difference in your overall tax strategy. Stay informed, plan ahead, and let these changes work in your favor!