Every year, the IRS factors inflation into its calculations of new tax rates, as well as maximum contributions for accounts such as retirement savings. This helps counteract the effects of rising prices in the economy.
For your convenience, we have compiled the new IRS annual cost-of-living adjustment (COLA) rates for 2025 with respect to several tax provisions.
As always, the CJBS team is happy to answer any questions you may have, to ensure that you are optimizing your tax refund.
The following tables provide a year-to-year COLA comparison for 2024 and 2025:
2024/2025 Tax Benefit
Standard Deduction
2024
2025
Married-Joint
$29,200
$30,000
Single
$14,600
$15,000
Married-Separate
$14,600
$15,000
Head of Household
$21,900
$22,500
Foreign Earned Income Exclusion
$126,500
$130,000
Maximum Taxable Social Security Earnings Base
$168,600
$176,100
2024 Individual Tax Income Rates
Rate
Single
Head of Household
Married-Joint
Married-Separate
10%
$0 – $11,600
$0 – $16,550
$0 – $23,200
$0 – $11,600
12%
$11,601 – $47,150
$16,551 – $63,100
$23,201 – $94,300
$11,601 – $47,150
22%
$47,151 – $100,525
$63,101 – $100,500
$94,301 – $201,050
$47,151 – $100,525
24%
$100,526 – $191,950
$100,501– $191,950
$201,051 – $383,900
$100,526 – $191,950
32%
$191,951 – $243,725
$191,951– $243,700
$383,901 – $487,450
$191,951 – $243,725
35%
$243,726 – $609,350
$243,701 – $609,350
$487,451 – $731,200
$243,726– $365,600
37%
Over $609,350
Over $609,350
Over $731,200
Over $365,600
2025 Individual Tax Income Rates
Rate
Single
Head of Household
Married-Joint
Married-Separate
10%
$0 – $11,925
$0 – $17,000
$0 – $23,850
$0 – $11,925
12%
$11,926 – $48,474
$17,001 – $64,850
$23,851 – $96,949
$11,926 – $48,474
22%
$48,475 – $103,349
$64,851 – $103,350
$96,950 – $206,699
$48,475 – $103,349
24%
$103,350 – $197,299
$103,351 – $197,300
$206,700- $394,599
$103,350 – $197,299
32%
$197,300 – $250,524
$197,301 – $250,500
$394,600 – $501,049
$197,300 – $250,524
35%
$250,525 – $626,349
$250,501 – $626,350
$501,050 – $751,599
$250,525 – $
37%
Over $626,350
Over $626,350
Over $751,600
Over $
2024 Trust & Estates Income Tax Brackets
Over
Not Over
The Tax Is
…Of Amount Over
$0
$3,100
10%
$0
$3,101
$11,150
$310 + 24%
$3,100
$11,151
$15,200
$2,242 + 35%
11,150
$15,200+
–
$3,659.50 + 37%
$15,200
2025 Trust & Estates Income Tax Brackets
Over
Not Over
The Tax Is
…Of Amount Over
$0
$3,150
10%
$0
$3,150
$11,450
$315 + 24%
$3,150
$11,450
$15,650
$2,307 + 35%
$11,450
$15,650
–
$3,777 + 37%
$15,650
2024 Alternative Minimum Tax Exemption
2024 Exception
Phase-Out Threshold
Complete Phase-Out of Exemption
Married Filing Jointly
$133,300
$1,218,700
$1,751,900
Married Filing Single
$66,650
$609,350
$875,950
Single
$85,700
$609,350
$952,150
Estates and Trust
$29,900
$99,700
$219,300
2025 Alternative Minimum Tax Exemption
2025 Exception
Phase-Out Threshold
Complete Phase-Out Exemption
Married Filing Jointly
$137,000
$1,252,700
$1,662,300
Married Filing Single
$68,650
$626,350
$903,350
Single
$88,100
$626,350
$831,150
Estates and Trust
$28,400
$94,600
$208,200
2024 Taxable Income Threshold for Long-Term Capital Gains Rate
Filing Status
0% Rate for Long-Term Capital Gains and Qualified Dividends
15% Rate for Long-Term Capital Gains and Qualified Dividends
20% Rate for Long-Term Capital Gains and Qualified Dividends
Married Filing Jointly
Up to $94,050
$94,051 – $583,750
Over $583,751
Head of Household
Up to $63,000
$551,350
Over $551,350
Single
Up to $47,025
$518,900
Over $518,901
Married Filing Single
Up to $47,025
$291,850
Over $291,850
Trusts & Estates
Up to $3,150
$15,450
–
2025 Taxable Income Threshold for Long-Term Capital Gains Rate
Filing Status
0% Rate for Long-Term Capital Gains and Qualified Dividends
15% Rate for Long-Term Capital Gains and Qualified Dividends
20% Rate for Long-Term Capital Gains and Qualified Dividends
Married Filing Jointly
Up to $96,700
Up to $600,050
Over $600,050
Head of Household
Up to $64,750
Up to $566,700
Over $566,700
Single
Up to $48,350
Up to $533,400
Over $533,400
Married Filing Single
Up to $48,350
Up to $300,000
Over $300,000
Trusts & Estates
Up to $3,250
Up to $15,900
Over $15,900
Gift & Estate Tax Exemptions
2024
2025
Gift Tax Exemption
$13,610,000
$13,990,000
Estate Tax Exemption
$13,610,000
$13,990,000
GST Tax Exemption
$13,610,000
$13,990,000
Annual Exclusion
$18,000
$19,000
Annual Exclusion (For gifts to spouses who are not U.S. Citizens)
$185,000
$190,000
2024 and 2025 Dollar Limit for Retirement Plans
Plan Types
2024 Limits
2025 Limits
Defined Contribution Plans
$69,000
$70,000
Defined Benefit Plans
$275,000
$280,000
Defined Contribution Plans – 401(k), 403(B) and 457 and Thrift Plans under Age 50
$23,000
$23,500
Age 50 and Older
$30,500
$31,000
Simple Plans: Under Age 50
$16,000
$16,500
Age 50 and Older
$19,500
$31,000
Qualified Plans – Annual Compensation Limit
$345,000
$350,000
Traditional IRA AGI Phase-Out (MFJ with participant in employer plan)
$143,000
$146,000
Traditional IRA AGI Phase-Out (MFJ with taxpayer not an active participant, spouse in employer plan)
