What Changed for the 2025 Tax Season

Every year the IRS adjusts dozens of tax provisions for inflation. Most of the changes are small. A few are worth knowing about. Here's the short list for 2025.

Standard Deduction Is Up

• Single / Married Filing Separately: $15,000 (up from $14,600)
• Married Filing Jointly: $30,000 (up from $29,200)
• Head of Household: $22,500 (up from $21,900)

For most filers, the standard deduction is now so high that itemizing only makes sense if you have a mortgage plus significant charitable giving or medical expenses.

Tax Brackets Widened

All seven brackets moved up about 2.8% to keep pace with inflation. Practically, this means a small raise no longer pushes as much of your income into a higher bracket. The top 37% bracket now starts at $626,350 (single) / $751,600 (MFJ).

Retirement Contribution Limits

• 401(k) / 403(b) employee deferral: $23,500 (up $500)
• Catch-up (age 50+): $7,500
• New 'super catch-up' for age 60–63: $11,250
• IRA / Roth IRA: $7,000 ($8,000 if 50+) — unchanged
• SEP-IRA & Solo 401(k) employer side: $70,000 (up $1,000)
• HSA family coverage: $8,550 (up $250)

The new super catch-up for ages 60–63 is the headline. If you're in that window, you can defer up to $34,750 into your workplace 401(k).

Standard Mileage Rate

• Business: 70¢ per mile (up from 67¢)
• Medical / Moving (military): 21¢ per mile
• Charitable: 14¢ per mile (set by statute, unchanged)

Estate and Gift Tax

• Annual gift exclusion: $19,000 per recipient (up from $18,000)
• Lifetime estate / gift exemption: $13.99 million per person

The lifetime exemption is currently scheduled to drop by roughly half on January 1, 2026, unless Congress extends it. If you're doing estate planning, this is the year to talk to a professional.

Earned Income Tax Credit (EITC)

Max EITC for a family with three or more children: $8,046 (up from $7,830). Income phase-outs adjusted upward as well. The EITC is one of the largest refundable credits available — make sure your preparer is actually calculating it.

What Didn't Change (But People Ask)

• The $10,000 SALT cap on state and local tax deductions is still in place (currently scheduled to expire after 2025).
• The 20% QBI deduction for pass-through businesses is unchanged (also scheduled to sunset after 2025).
• Roth IRA income limits ticked up slightly: phase-out starts at $150,000 (single) / $236,000 (MFJ).

Bottom Line

Most of these changes are quiet inflation adjustments. The ones worth acting on: max out the new retirement limits if you can, double-check mileage logs at the higher rate, and if you're 60–63 take advantage of the super catch-up.