Your Money Matters: New IRS Tax Brackets For 2025 May Help Keep More Money In Your Pocket

The IRS is adjusting 2025 tax brackets and raising the standard deduction to offset inflation, allowing many taxpayers to earn more without moving into higher tax rates.

Friday, October 25th 2024, 8:15 am

By: Dave Davis


The IRS has announced new income tax brackets for 2025, potentially allowing you to keep more of your money.

These brackets are raised annually to prevent “bracket creep,” which can push you into a higher tax bracket due to cost-of-living adjustments rather than earning more money.

The two lowest tax brackets are increasing by $650 and $1,650, respectively, for married couples filing jointly. This means you could earn more this year than last but still be taxed at the same rate.

The standard deduction is also going up, now set at $30,000. For married couples, this means you could make $100,000 together but only be taxed on $70,000 of that. The numbers are lower for singles.

The child tax credit, however, will remain at $2,000 for the upcoming tax year.

Dave Davis

Dave Davis co-anchors News On 6 at Noon and reports for Six In The Morning. He proudly calls Marion, Ohio home.

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