Tax brackets and more are changing in 2024, 2025: What to know

(NEXSTAR) — We’re still two weeks away from the end of 2024, but maybe you’re already gearing up for tax season (we are more than 100 days out from Tax Day, in case you’re curious). 

While the IRS recently announced big updates for tax year 2025, including another adjustment to the tax brackets due to inflation, there are some changes to be aware of before you file your taxes for 2024.

And, if you’re really looking forward to tax year 2025, we’ve included those updates below.

Tax brackets and the standard deduction for 2024

The standard deduction for single taxpayers and married individuals filing separately will be $14,600, up $750 over 2023. For married couples filing together, the standard deduction is rising by $1,500 to $29,200. For heads of households, it will be $21,900, up $1,100.

The table below shows the tax bracket breakdown for tax year 2024:

If you had an income of $11,600 or less in 2024 (or $23,200 for married couples filing jointly), you fall under the lowest rate of 10%.

What else should you know for tax year 2024?

If you have three or more qualifying children, the maximum Earned Income Tax Credit will be $7,830, up from $7,430.

The alternative minimum tax exemption is also set to increase to $85,700 for individuals, phasing out at $609,350, and $133,300 for married couples filing jointly, phasing out at $1,218,700.

While there are a handful of other tax provisions set to change for the current tax year, there are some that will remain the same. That includes the lack of limitation on itemized deductions and the personal exemption, which will remain at 0.

What to expect in tax year 2025

Like tax year 2024, the standard deduction, tax brackets, and more will be updated for tax year 2025. 

Single taxpayers and married individuals filing separately will see their standard deduction rise to $15,000, while those who are married and filing jointly will have a standard deduction of $30,000. For heads of households, it will be $22,500. 

The tax brackets will also change. You can see those below:

The top tax rate remains unchanged, staying at 37% for single taxpayers with incomes over $626,350 and $751,600 for married couples filing jointly.

In tax year 2025, the maximum Earned Income Tax Credit amount will increase from $7,830 to $8,046 for qualifying taxpayers with three or more qualifying children.

The alternative minimum tax exemption amount will increase to $88,100 for individual filers, up $2,400 over the previous year. For married individuals filing separately, the exemption amount will increase to $68,650. For both groups, the exemption phases out at $626,350.

For married couples filing together, the exemption amount will rise to $137,000, phasing out at $1,252,700.

Like tax year 2024, multiple areas of the tax code will not be updated in tax year 2025, including personal exemptions and lack of limitation on itemized deductions.

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Unlike previous years, the next two Tax Days will not be interrupted by weird calendar years as they both fall on April 15 — a Tuesday in 2025 and a Wednesday in 2026.

Jeremy Tanner contributed to this report.