IRS has announced its new tax brackets for 2025. Here’s what you should know.

The IRS announced its new inflation-adjusted tax brackets for 2025 on Tuesday, with annual income limits increasing by about 2.8% starting in 2024 – the smallest jump in several years.

Every fall, the IRS announces inflation-adjusted changes to tax brackets and dozens of other provisions for the following tax year. With inflation surging during the pandemic, tariff adjustments have been larger in recent years. reach 7% in 2023 And 5.4% in the current year.

The idea is to protect taxpayers from “bracket creep,” in which workers are pushed into higher tax brackets due to the impact of cost-of-living adjustments aimed at offsetting inflation, without changing their standard of living.

But with US inflation cooling lowest level in three yearsThe IRS’s annual adjustments have also become smaller.

For example, the new 10% tax bracket threshold for married couples filing jointly will increase to $23,850 in 2025, a 2.8% increase from the $23,200 threshold in 2024

The standard deduction in 2025 will increase to $30,000 for married couples filing jointly, an increase of about 2.7% from $29,200 in the current tax year.

—This is a recent story and will be updated.