The top rate of 37% applies to individuals with taxable income above $626,350 and married couples filing jointly earning $751,600 or more for 2025.
The IRS has announced new federal income tax brackets and standard deductions for 2025.
Federal income tax brackets show how much you owe on each part of your "taxable income," which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
If the provision expires, the tax brackets will revert to 2017 levels , shifting to 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.
Trump's tax cuts also included higher standard deductions, which will sunset after 2025 if Congress doesn't extend that tax break.
Persons:
Donald Trump
Organizations:
IRS