IRS Tax Tables 2025: What You Need to Know

For those who have a business in the U.S. (such as an LLC), understanding the new tax tables for 2025 is crucial. The IRS publishes annually the inflation-adjusted thresholds, which affect tax rates, the standard deduction, and other key benefits. Here’s a helpful and updated summary.

1. 2025 Standard Deduction

The IRS adjusted the standard deduction to reflect inflation. These are the applicable amounts for 2025 (forms to be filed in 2026):

• Single or married filing separately: $15,000
• Head of household: $22,500
• Married filing jointly: $30,000
  The Wall Street Journal +4, IRS +4, Congress.gov +4, Wikipedia +1, Congress.gov +1

Additionally, there are extra deductions:

• Over age 65 or blind: permanent additional deduction
• Temporary extra deduction for those over 65: up to $6,000 (valid through 2028)
  Kiplinger

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2. 2025 Marginal Tax Rates Table

The seven federal tax rates (from 10% to 37%) remain unchanged, although the income ranges were updated for inflation (U.S. Bank). Here are the brackets by filing status:

Single:

• 10%: $0–11,925
• 12%: $11,926–48,475
• 22%: $48,476–103,350
• 24%: $103,351–197,300
• 32%: $197,301–250,525
• 35%: $250,526–626,350
• 37%: $626,351 or more
  Morgan Stanley +15, Jackson Hewitt +15, U.S. Bank +15

Married Filing Jointly:

• 10%: $0–23,850
• 12%: $23,851–96,950
• 22%: $96,951–206,700
• 24%: $206,701–394,600
• 32%: $394,601–501,050
• 35%: $501,051–751,600
• 37%: $751,601 or more
  U.S. Bank +4, Jackson Hewitt +4, Fidelity +4

Head of Household:

• 10%: $0–17,000
• 12%: $17,001–64,850
• 22%: $64,851–103,350
• 24%: $103,351–197,300
• 32%: $197,301–250,500
• 35%: $250,501–626,350
• 37%: $626,351 or more
  Fidelity, Jackson Hewitt +1, NerdWallet +1

Married Filing Separately:

Similar to single filers, but specific brackets apply for separate returns
Congress.gov +4, IRS +4, TurboTax +4

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Inflation Adjustment and Rate Permanence

The recent legislation signed in July 2025 (OBBBA) keeps these seven rates permanent and ensures an automatic inflation adjustment of the income ranges. It also includes an increase to the SALT cap of $40,000, although this is outside the federal scope.
U.S. Bank +3, Investopedia.com +3, Kiplinger +3

3. Long-Term Capital Gains Taxes

For fiscal year 2025, profits held longer than one year are taxed as follows:

• 0%: up to $48,350 (single); $96,700 (married jointly)
• 15%: next income levels
• 20%: income over $533,400 (single); $600,050 (married jointly)
  TurboTax +4, Wikipedia +4, Barron’s +4

4. How to Apply the Table in Your Strategy

Once you know your taxable income, follow these steps:

• Determine your gross income and subtract deductions (standard or itemized).
• Identify your filing status.
• Apply the marginal rate based on the corresponding bracket.
• Add the tax due for each previous bracket.

5. Relevance for Entrepreneurs and Business Owners

If you run an LLC, it’s key to know:

• Your net income after taxes determines your withdrawal policy.
• The standard deduction helps reduce your burden without itemizing expenses.
• If you have employees, your tax responsibility increases.
• For exporting businesses, you may benefit from the foreign income credit and avoid double taxation.

Important Tax Calendar

• Deadline to file for 2025 (without extension): April 15, 2026
• Extension available until: October 15, 2026 if requested
• Quarterly estimated payments: Required if your withholdings are insufficient

Final Recommendations

• Review your withholdings based on your estimated bracket.
• Consider additional deductions (such as retirement plans or medical expenses).
• Evaluate whether to itemize deductions or take the standard one.
• Keep your bookkeeping up to date throughout the fiscal year.

Quick Summary

Concept2025Standard Deduction (Single)$15,000(Joint)$30,000(Head of Household)$22,500Marginal Tax Rates10%, 12%, 22%, 24%, 32%, 35%, 37%Long-Term Capital Gains0%, 15%, 20% based on bracketsSALT CapUp to $40,000 (temporary)

Knowing the IRS 2025 tax table is essential to making informed decisions: understanding how much to save for taxes, when to take advantage of retirement accounts, or how to structure withdrawals from your LLC.

Want help integrating this strategy into your U.S. business tax planning?
At Openbiz, we support you with accounting, business structuring, and legal advice so you can make the right decisions—without wasting time or resources.

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