Each year brings important adjustments to federal tax thresholds, deductions, and credits—and 2025 is no exception. From standard deductions to contribution limits, these changes impact everything from your paycheck to your portfolio.
Notable highlights this year include:
Higher standard deductions: Married couples can now deduct up to $30,000.
IRA and 401(k) updates: Traditional and Roth IRA contribution limits hold at $7,000, but income phaseout ranges have shifted upward. The 401(k) deferral limit increased to $23,500.
Gift tax exclusion: The annual exclusion rose to $19,000 per recipient.
Long-term care premiums and HSA limits: Both have modest increases, offering more flexibility in healthcare planning.
Key Medicare & Social Security adjustments: Premiums and benefit thresholds have been updated in light of inflation.
Nonrefundable credit for dependents who are not qualifying children
$500
$500
Phaseout — credit reduced by $50 for each $1,000 or fraction thereof of MAGI over (but not to be reduced below $2,000):
2024
2025
Married filing jointly or surviving spouse
N/A
N/A
Head of household
N/A
N/A
Single or married filing separately
N/A
N/A
Phaseout — any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:
2024
2025
Married filing jointly
$400,000
$400,000
All other filing status
$200,000
$200,000
Refundability — up to specified percentage of earned income in excess of specified amount
2024
2025
Percentage
15%
15%
Amount
$2,500
$2,500
Maximum refundable amount of credit
$1,700
$1,700
Classroom expenses of elementary and secondary school teachers
Classroom expense deduction
2024
2025
Maximum above-the-line deduction
$300
$300
Investment income limit
2024
2025
Excessive investment income limit (“disqualified income limit”)
$11,600
$11,950
Maximum amount of EITC per number of children
2024
2025
0 children
$632
$649
1 child
$4,213
$4,328
2 children
$6,960
$7,152
3 or more children
$7,830
$8,046
Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)
2024
2025
0 children
$8,260
$8,490
1 child
$12,390
$12,730
2 or more children
$17,400
$17,880
Threshold phaseout amount for joint filers per number of children
2024
2025
0 children
$17,250
$17,730
1 child
$29,640
$30,470
2 children
$29,640
$30,470
3 or more children
$29,640
$30,470
Threshold phaseout amount for other filers per number of children
2024
2025
0 children
$10,330
$10,620
1 child
$22,720
$23,350
2 children
$22,720
$23,350
3 or more children
$22,720
$23,350
Completed phaseout amount for joint filers per number of children
2024
2025
0 children
$25,511
$26,214
1 child
$56,004
$57,554
2 children
$62,688
$64,430
3 or more children
$66,819
$68,675
Completed phaseout amount for other filers per number of children
2024
2025
0 children
$18,591
$19,104
1 child
$49,084
$50,434
2 children
$55,768
$57,310
3 or more children
$59,899
$61,555
Expatriation
Covered expatriate
2024
2025
An individual with “average annual net income tax” of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1)
$200,000
$206,000
IRC §877A(3) exclusion amount
$866,000
$890,000
Foreign earned income
Amount excluded from income
2024
2025
Exclusion amount
$126,500
$130,000
Itemized deductions
Phaseout threshold
2024
2025
Married filing jointly
N/A
N/A
Head of household
N/A
N/A
Unmarried
N/A
N/A
Married filing separately
N/A
N/A
Kiddie tax
Unearned income limit
2024
2025
Amount exempt from tax
$1,300
$1,350
Additional amount taxed at child’s rate
$1,300
$1,350
Unearned income over this amount generally taxed at parents’ tax rates
$2,600
$2,700
Parent’s election
2024
2025
Election to include child’s income on parent’s return — child’s gross income requirement
$1,300 – $13,000
$1,350 – $13,500
AMT
2024
2025
AMT exemption for child subject to kiddie tax
Lesser of $9,250 + child’s earned income or $85,700
Lesser of $9,550 + child’s earned income or $88,100
Medicare tax (additional payroll tax and unearned income contribution tax)
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding
2024
2025
Individuals
$200,000
$200,000
Married filing jointly
$250,000
$250,000
Married filing separately
$125,000
$125,000
Nanny tax
Compensation threshold
2024
2025
Domestic employee coverage threshold
$2,700
$2,800
Personal exemption amount
Amount
2024
2025
Personal exemption amount
N/A
N/A
Married filing jointly
2024
2025
Phaseout threshold amount
N/A
N/A
Completed phaseout amount after
N/A
N/A
Head of household
2024
2025
Phaseout threshold amount
N/A
N/A
Completed phaseout amount after
N/A
N/A
Unmarried
2024
2025
Phaseout threshold amount
N/A
N/A
Completed phaseout amount after
N/A
N/A
Married filing separately
2024
2025
Phaseout threshold amount
N/A
N/A
Completed phaseout amount after
N/A
N/A
“Saver’s Credit”
Elective Deferrals and IRA or ABLE Contributions by Certain Individuals
2024
2025
Maximum credit amount
$1,000
$1,000
Applicable percentage of 50% applies to AGI
2024
2025
Joint Return
$0 – $46,000
$0 – $47,500
Head of Household
$0 – $34,500
$0 – $35,625
Other
$0 – $23,000
$0 – $23,750
Applicable percentage of 20% applies to AGI
2024
2025
Joint Return
$46,001 – $50,000
$47,501 – $51,000
Head of Household
$34,501 – $37,500
$35,626 – $38,250
Other
$23,001 – $25,000
$23,751 – $25,500
Applicable percentage of 10% applies to AGI
2024
2025
Joint Return
$50,001 – $76,500
$51,001 – $79,000
Head of Household
$37,501 – $57,375
$38,251 – $59,250
Other
$25,001 – $38,250
$25,501 – $39,500
Applicable percentage of 0% applies to AGI
2024
2025
Joint Return
Over $76,500
Over $79,000
Head of Household
Over $57,375
Over $59,250
Other
Over $38,250
Over $39,500
Standard deductions
Amounts
2024
2025
Married filing jointly or surviving spouse
$29,200
$30,000
Head of household
$21,900
$22,500
Unmarried
$14,600
$15,000
Married filing separately
$14,600
$15,000
Dependent–Standard deduction cannot exceed the greater of:
$1,300 or $450 + earned income
$1,350 or $450 + earned income
Additional deduction for aged or blind (single or head of household)
$1,950
$2,000
Additional deduction for aged or blind (all other filing statuses)
$1,550
$1,600
Standard mileage rates
Applicable rates
2024
2025
Use of auto for business purposes
(cents per mile)
$0.67
$0.70
Use of auto for medical purposes
(cents per mile)
$0.21
$0.21
Use of auto for moving purposes
(cents per mile)
$0.21
$0.21
2025 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
Single taxpayers
If taxable income is:
Your tax is:
Not over $11,925
10% of taxable income
Over $11,925 to $48,475
$1,192.50 + 12% of the excess over $11,925
Over $48,475 to $103,350
$5,578.50 + 22% of the excess over $48,475
Over $103,350 to $197,300
$17,651 + 24% of the excess over $103,350
Over $197,300 to $250,525
$40,199 + 32% of the excess over $197,300
Over $250,525 to $626,350
$57,231 + 35% of the excess over $250,525
Over $626,350
$188,769.75 + 37% of the excess over
$626,350
Married filing jointly and surviving spouses
If taxable income is:
Your tax is:
Not over $23,850
10% of taxable income
Over $23,850 to $96,950
$2,385 + 12% of the excess over $23,850
Over $96,950 to $206,700
$11,157 + 22% of the excess over $96,950
Over $206,700 to $394,600
$35,302 + 24% of the excess over $206,700
Over $394,600 to $501,050
$80,398 + 32% of the excess over $394,600
Over $501,050 to $751,600
$114,462 + 35% of the excess over $501,050
Over $751,600
$202,154.50 + 37% of the excess over
$751,600
Married individuals filing separately
If taxable income is:
Your tax is:
Not over $11,925
10% of taxable income
Over $11,925 to $48,475
$1,192.50 + 12% of the excess over $11,925
Over $48,475 to $103,350
$5,578.50 + 22% of the excess over $48,475
Over $103,350 to $197,300
$17,651 + 24% of the excess over $103,350
Over $197,300 to $250,525
$40,199 + 32% of the excess over $197,300
Over $250,525 to $375,800
$57,231 + 35% of the excess over $250,525
Over $375,800
$101,077.25 + 37% of the excess over
$375,800
Heads of household
If taxable income is:
Your tax is:
Not over $17,000
10% of taxable income
Over $17,000 to $64,850
$1,700 + 12% of the excess over $17,000
Over $64,850 to $103,350
$7,442 + 22% of the excess over $64,850
Over $103,350 to $197,300
$15,912 + 24% of the excess over $103,350
Over $197,300 to $250,500
$38,460 + 32% of the excess over $197,300
Over $250,500 to $626,350
$55,484 + 35% of the excess over $250,500
Over $626,350
$187,031.50 + 37% of the excess over
$626,350
Trusts and estates
If taxable income is:
Your tax is:
Not over $3,150
10% of taxable income
Over $3,150 to $11,450
$315 + 24% of the excess over $3,150
Over $11,450 to $15,650
$2,307 + 35% of the excess over $11,450
Over $15,650
$3,777 + 37% of the excess over $15,650
2024 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
Single taxpayers
If taxable income is:
Your tax is:
Not over $11,600
10% of taxable income
Over $11,600 to $47,150
$1,160 + 12% of the excess over $11,600
Over $47,150 to $100,525
$5,426 + 22% of the excess over $47,150
Over $100,525 to $191,950
$17,168.50 + 24% of the excess over $100,525
Over $191,950 to $243,725
$39,110.50 + 32% of the excess over $191,950
Over $243,725 to $609,350
$55,678.50 + 35% of the excess over $243,725
Over $609,350
$183,647.25 + 37% of the excess over
$609,350
Married filing jointly and surviving spouses
If taxable income is:
Your tax is:
Not over $23,200
10% of taxable income
Over $23,200 to $94,300
$2,320 + 12% of the excess over $23,200
Over $94,300 to $201,050
$10,852 + 22% of the excess over $94,300
Over $201,050 to $383,900
$34,337 + 24% of the excess over $201,050
Over $383,900 to $487,450
$78,221 + 32% of the excess over $383,900
Over $487,450 to $731,200
$111,357 + 35% of the excess over $487,450
Over $731,200
$196,669.50 + 37% of the excess over
$731,200
Married individuals filing separately
If taxable income is:
Your tax is:
Not over $11,600
10% of taxable income
Over $11,600 to $47,150
$1,160 + 12% of the excess over $11,600
Over $47,150 to $100,525
$5,426 + 22% of the excess over $47,150
Over $100,525 to $191,950
$17,168.50 + 24% of the excess over $100,525
Over $191,950 to $243,725
$39,110.50 + 32% of the excess over $191,950
Over $243,725 to $365,600
$55,678.50 + 35% of the excess over $243,725
Over $365,600
$93,334.75 + 37% of the excess over $365,600
Heads of household
If taxable income is:
Your tax is:
Not over $16,550
10% of taxable income
Over $16,550 to $63,100
$1,655 + 12% of the excess over $16,550
Over $63,100 to $100,500
$7,241 + 22% of the excess over $63,100
Over $100,500 to $191,950
$15,469 + 24% of the excess over $100,500
Over $191,950 to $243,700
$37,417 + 32% of the excess over $191,950
Over $243,700 to $609,350
$53,977 + 35% of the excess over $243,700
Over $609,350
$181,954.50 + 37% of the excess over
$609,350
Trusts and estates
If taxable income is:
Your tax is:
Not over $3,100
10% of taxable income
Over $3,100 to $11,150
$310 + 24% of the excess over $3,100
Over $11,150 to $15,200
$2,242 + 35% of the excess over $11,150
Over $15,200
$3,659.50 + 37% of the excess over $15,200
Business Planning
Adoption Assistance Programs
Adoption assistance
2024
2025
Maximum amount that can be excluded from employee’s gross income
$16,810
$17,280
Phaseout threshold amount
$252,150
$259,190
Completed phaseout amount after
$292,150
$299,190
Earnings subject to FICA taxes (taxable wage base)
FICA tax
2024
2025
Maximum annual earnings subject to Social Security taxes
$168,600
$176,100
Social Security and Medicare combined tax rate
15.30%1
15.30%1
OASDI portion (Social Security)
12.40%
12.40%
Hospital Insurance portion (Medicare)
2.90%1
2.90%1
1 An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000).
Health insurance deduction for self-employed
Health insurance premiums
2024
2025
Deduction for health insurance premiums paid by
self-employed persons
100%
100%
Qualified transportation fringe benefits
Qualified transportation fringe benefits
2024
2025
Commuter vehicles and transit pass monthly exclusion amount
Maximum amount that may be deducted under IRC Section 179
$1,220,000
$1,250,000
Deduction reduced by the amount by which the cost of
§179 property placed in service during the year exceeds this amount
$3,050,000
$3,130,000
Small business tax credit for providing health-care coverage
Amount of credit
2024
2025
Maximum credit percentage
50%
50%
Partial credit
2024
2025
Number of full-time equivalent employees (FTEs) fewer than:
25
25
Maximum average annual wages less than:
$64,800
$66,600
Full credit
2024
2025
Number of full-time equivalent employees (FTEs) no more than:
10
10
Maximum average annual wages less than or equal to:
$32,400
$33,300
Special additional first-year depreciation allowance
Bonus depreciation
2024
2025
“Bonus” depreciation for qualified property acquired and placed in service during specified time periods
60%
40%
Standard mileage rate (per mile)
Business use of auto
2024
2025
Use of auto for business purposes
$0.67
0.70
Education Planning
American Opportunity and Lifetime Learning Credits
Education credits
2024
2025
Maximum American Opportunity credit
$2,500
$2,500
Maximum Lifetime Learning credit
$2,000
$2,000
MAGI phaseout range for American Opportunity credit
2024
2025
Single–phaseout threshold amount
$80,000
$80,000
Single–completed phaseout amount after
$90,000
$90,000
Married filing jointly–phaseout threshold amount
$160,000
$160,000
Married filing jointly–completed phaseout amount after
$180,000
$180,000
MAGI phaseout range for Lifetime Learning credit
2024
2025
Single–phaseout threshold amount
$80,000
$80,000
Single–completed phaseout amount after
$90,000
$90,000
Married filing jointly–phaseout threshold amount
$160,000
$160,000
Married filing jointly–completed phaseout amount after
$180,000
$180,000
Coverdell education savings accounts
Coverdell ESAs
2024
2025
Annual contribution limit
$2,000
$2,000
MAGI phaseout range for Coverdell education savings accounts
2024
2025
Single–phaseout threshold amount
$95,000
$95,000
Single–completed phaseout amount after
$110,000
$110,000
Married filing jointly–phaseout threshold amount
$190,000
$190,000
Married filing jointly–completed phaseout threshold amount
$220,000
$220,000
Deduction for qualified higher education expenses
Higher education expenses
2024
2025
Maximum deduction
N/A
N/A
MAGI maximum for full $4,000 deduction
2024
2025
Single
N/A
N/A
Married filing jointly
N/A
N/A
MAGI range for $2,000 deduction
2024
2025
Single–MAGI greater than this amount:
N/A
N/A
Single–MAGI does not exceed this amount:
N/A
N/A
Married filing jointly–MAGI greater than this amount:
N/A
N/A
Married filing jointly–MAGI does not exceed this amount:
N/A
N/A
Deduction for student loan interest
Education loan interest deduction
2024
2025
Maximum deduction for interest paid on qualified education loans
$2,500
$2,500
MAGI phaseout range
2024
2025
Single–phaseout threshold amount
80,000
$85,000
Single–completed phaseout amount after
$95,000
$100,000
Married filing jointly–phaseout threshold amount
$165,000
$170,000
Married filing jointly–completed phaseout amount after
$195,000
$200,000
Gift tax exclusion
Gift tax
2024
2025
Annual gift tax
exclusion–single individual
$18,000
$19,000
Annual gift tax exclusion–joint gift
$36,000
$38,000
Lump-sum gift to 529 plan–single individual
$90,000
$95,000
Lump-sum gift to 529 plan–joint gift
$180,000
$190,000
Kiddie tax
Kiddie tax
2024
2025
Children’s unearned income over this amount generally taxed at parents’ tax rates
$2,600
$2,700
U.S. savings bonds interest exclusion for college expenses
Joint returns
2024
2025
Phaseout threshold for joint returns
$145,200
$149,250
Completed phaseout amount after
$175,200
$179,250
Other returns
2024
2025
Phaseout threshold for other returns
$96,800
$99,500
Completed phaseout amount after
$111,800
$114,500
Protection Planning
Eligible long-term care premium deduction limits:
LTC premium deduction limits
2024
2025
Age 40 or under
$470
$480
Age 41-50
$880
$900
Age 51-60
$1,760
$1,800
Age 61-70
$4,710
$4,810
Over age 70
$5,880
$6,020
Per diem limit:
LTC periodic payments
2024
2025
Periodic payments for qualified long-term care insurance/certain life insurance
$410
$420
Archer Medical Savings Accounts
High deductible health plan–self-only coverage
2024
2025
Annual deductible–minimum
$2,800
$2,850
Annual deductible–maximum
$4,150
$4,300
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed
$5,550
$5,700
High deductible health plan–family coverage
2024
2025
Annual deductible–minimum
$5,550
$5,700
Annual deductible–maximum
$8,350
$8,550
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed
$10,200
$10,500
Flexible spending account (FSA) for health care
Health care FSAs
2024
2025
Maximum salary reduction contribution
$3,200
$3,300
Health Savings Accounts (HSAs)
Annual contribution limit
2024
2025
Self-only coverage
$4,150
$4,300
Family coverage
$8,300
$8,550
High deductible health plan–self-only coverage
2024
2025
Annual deductible–minimum
$1,600
$1,650
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed
$8,050
$8,300
High deductible health plan–family coverage
2024
2025
Annual deductible–minimum
$3,200
$3,300
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed
$16,100
$16,600
Catch-up contributions
2024
2025
Annual catch-up contribution limit for individuals age 55 or older
$1,000
$1,000
Estate Planning
Key indexed figures
2024
2025
Annual gift exclusion:
$18,000
$19,000
Gift and estate tax applicable exclusion amount:
$13,610,000 + DSUEA1
$13,990,000 + DSUEA1
Noncitizen spouse annual gift exclusion:
$185,000
$190,000
Generation-skipping transfer (GST) tax exemption:
$13,610,0002
$13,990,0002
Special use valuation limit (qualified real property in decedent’s gross estate):
$1,390,000
$1,420,000
1 Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable for 2011 and later years)
2 The GST tax exemption is not portable
2024 and 2025 gift and estate tax rate schedule
Taxable Estate
Tentative Tax Equals
Plus
Of Amount Over
0 – $10,000
$0
18%
$0
$10,000 – $20,000
$1,800
20%
$10,000
$20,000 – $40,000
$3,800
22%
$20,000
$40,000 – $60,000
$8,200
24%
$40,000
$60,000 – $80,000
$13,000
26%
$60,000
$80,000 – $100,000
$18,200
28%
$80,000
$100,000 – $150,000
$23,800
30%
$100,000
$150,000 – $250,000
$38,800
32%
$150,000
$250,000 – $500,000
$70,800
34%
$250,000
$500,000 – $750,000
$155,800
37%
$500,000
$750,000 – $1,000,000
$248,300
39%
$750,000
$1,000,000 +
$345,800
40%
$1,000,000
Credit shelter amount $13,610,000 in 2024 and $13,990,000 in 2025
Unified credit amount $5,389,800 in 2024 and $5,541,800 in 2025
Unified credit amount $5,389,800 in 2024 and $5,541,800 in 2025
Unified credit amount $5,389,800 in 2024 and $5,541,800 in 2025
Government Benefits
Social Security
Social Security Cost-of-living adjustment (COLA)
2024
2025
For Social Security and Supplemental Security Income (SSI) beneficiaries
3.20%
2.50%
Tax rate–employee
2024
2025
FICA tax — Employee
7.65%
7.65%
Social Security (OASDI) portion of tax
6.20%
6.20%
Medicare (HI) portion of tax
1.45%1
1.45%1
Tax rate–self-employed
2024
2025
Self-Employed
15.30%
15.30%
Social Security (OASDI) portion of tax
12.40%
12.40%
Medicare (HI) portion of tax
2.90%1
2.90%1
1 An additional 0.9% Medicare/hospital insurance tax (for a total employee contribution of 2.35%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns,
$125,000 for married individuals filing separate returns). An additional 0.9% Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is assessed on self-employment income exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns).
Maximum taxable earnings
2024
2025
Social Security (OASDI only)
$168,600
$176,100
Medicare (HI only)
No limit
No Limit
Quarter of coverage
2024
2025
Earnings required
$1,730
$1,810
Retirement earnings test–exempt amounts–Under full retirement age–Benefits reduced by $1 for each $2 earned above:
2024
2025
Yearly figure
$22,320
$23,400
Monthly figure
$1,860
$1,950
Retirement earnings test–exempt amounts–Year individual reaches full retirement age–Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age):
2024
2025
Yearly figure
$59,520
$62,160
Monthly figure
$4,960
$5,180
Retirement earnings test–exempt amounts–Beginning the month individual attains full retirement age
2024
2025
No limit on earnings
No limit on earnings
Social Security disability thresholds
2024
2025
Substantial gainful activity (SGA) for the sighted (monthly figure)
$1,550
$1,620
Substantial gainful activity for the blind (monthly figure)
$2,590
$2,700
Trial work period (TWP) (monthly figure)
$1,110
$1,160
SSI federal payment standard
2024
2025
Individual (monthly figure)
$943
$967
Couple (monthly figure)
$1,415
$1,450
SSI resource limits
2024
2025
Individual
$2,000
$2,000
Couple
$3,000
$3,000
SSI student exclusion limits
2024
2025
Monthly limit
$2,290
$2,350
Annual limit
$9,230
$9,460
Maximum Social Security benefit
2024
2025
Worker retiring at full retirement age (monthly figure)
$3,822
$4,018
Formula for Monthly Primary Insurance Amount (PIA)
2024
2025
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y)
X=$1,174 Y=$7,078
X=$1,226 Y=$7,391
Medicare
Medicare monthly premium amounts–Part A (hospital insurance) premium
2024
2025
Individuals with 40 or more quarters of Medicare-covered employment
$0
$0
Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance
Up to $505
Up to $518
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file an individual income tax return with income that is:
2024
2025
2024
2025
Less than or equal to
$103,000
Less than or equal to
$106,000
$174.702
$185.002
$103,001 – $129,000
$106,001 – $133,000
$244.60
$259.00
$129,001 – $161,000
$133,001 – $167,000
$349.40
$370.00
$161,001 – $193,000
$167,001 – $200,000
$454.20
$480.90
$193,001 – $499,999
$200,001 – $499,999
$559.00
$591.90
$500,000 and above
$500,000 and above
$594.00
$628.90
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file a joint income tax return with income that is:
2024
2025
2024
2025
Less than or equal to
$206,000
Less than or equal to
$212,000
$174.702
$185.002
$206,001 – $258,000
$212,001 – $266,000
$244.60
$259.00
$258,001 – $322,000
$266,001 – $334,000
$349.40
$370.00
$322,001 – $386,000
$334,001 – $400,000
$454.20
$480.90
$386,001 – $749,999
$400,001 – $749,999
$559.00
$591.90
$750,000 and above
$750,000 and above
$594.00
$628.90
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is:
2024
2025
2024
2025
Less than or equal to
$103,000
Less than or equal to
$106,000
$174.702
$185.002
$103,001 – $396,999
$106,001 – $393,999
$559.00
$591.90
$397,000 and above
$394,000 and above
$594.00
$628.90
2 This is the standard Part B premium amount. However, some people who get Social Security benefits will pay more or less than this amount.
Original Medicare plan deductible and coinsurance amounts–Part A (hospital insurance)
2024
2025
Deductible per benefit period
$1,632
$1,676
Coinsurance per day for 61st to 90th day of each benefit period
$408
$419
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable)
$816
$838
Original Medicare plan deductible and coinsurance amounts
2024
2025
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period
$204
$209.50
Original Medicare plan deductible and coinsurance amounts–Part B (medical insurance) annual deductible
2024
2025
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met
$240
$257
Medicaid
Income threshold
2024
2025
Monthly income threshold for income-cap states (“300 percent cap limit”)
$2,829
$2,901
Monthly maintenance needs allowance for at-home spouse
2024
2025
Minimum3
$2,465.00
$2,555.00
Maximum
$3.853.50
$3,948.00
Community spousal resource allowance
2024
2025
Minimum
$30,828
$31,584
Maximum
$154,140
$157,920
3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.
Retirement Planning
Employee/individual contribution limits
Elective deferral limits
2024
2025
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1 [Includes Roth 401(k) and Roth 403(b) contributions]
Lesser of $23,000 or 100% of participant’s compensation
Lesser of $23,500 or 100% of participant’s compensation
SIMPLE 401(k) plans and SIMPLE IRA plans1
Lesser of $16,000 or 100% of participant’s compensation
Lesser of $16,500 or 100% of participant’s compensation
SIMPLE 401(k) plans and SIMPLE IRA plans with 25 or fewer employees (or those that elect these higher limits)1
Lesser of $17,600 or 100% of participant’s compensation
Lesser of $17,600 or 100% of participant’s compensation
Starter 401(k) plans and safe-harbor 403(b) plans
Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older)
Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older)
1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).
IRA contribution limits
2024
2025
Traditional IRAs
Lesser of $7,000 or 100% of earned income
Lesser of $7,000 or 100% of earned income
Roth IRAs
Lesser of $7,000 or 100% of earned income
Lesser of $7,000 or 100% of earned income
Additional “catch-up” limits (individuals age 50 or older)
2024
2025
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs2
$7,500
$7,500
*Catch-up limit if age 60 to 63
N/A
$11,250
SIMPLE 401(k) plans and SIMPLE IRA plans
$3,500 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit)
$3,500 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit)
*Catch-up limit if age 60 to 63
N/A
$5,250
IRAs (traditional and Roth)
$1,000
$1,000
2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.
Employer contribution/benefit limits *3
Defined benefit plan limits
2024
2025
Annual contribution limit per participant
No predetermined limit. Contributions based on amount needed to fund promised benefits
No predetermined limit. Contributions based on amount needed to fund promised benefits.
Annual benefit limit per participant
Lesser of $275,000 or 100% of average compensation for highest 3 consecutive years
Lesser of $280,000 or 100% of average compensation for highest 3 consecutive years
Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans]
2024
2025
Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth
contributions; and forfeitures) (does not apply to SIMPLE IRA plans)
Lesser of $69,000 or 100% (25% for SEP) of participant’s compensation
Lesser of $70,000 or 100% (25% for SEP) of participant’s compensation
Maximum tax-deductible employer contribution [not applicable to 403(b) plans]
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans
Pension-linked emergency savings accounts (maximum amount attributable to employee deferrals)
$2,500
$2,500
3 For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.
Compensation limits/thresholds
Retirement plan compensation limits
2024
2025
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs)
$345,000
$350,000
Compensation threshold used to determine a highly compensated employee
$155,000 (when 2024 is the look-back year)
$160,000 (when 2025 is the look-back year)
Compensation threshold used to determine a key employee in a top-heavy plan
$1 for more-than-5% owners,
$220,000 for officers, $150,000 for more-than-1% owners
$1 for more-than-5% owners,
$230,000 for officers, $150,000 for more-than-1% owners
Compensation threshold used to determine a qualifying employee under a SIMPLE plan
$5,000
$5,000
Compensation threshold used to determine a qualifying employee under a SEP plan
$750
$750
Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as:
2024
2025
Single
$77,000 – $87,000
$79,000 – $89,000
Married filing jointly
$123,000 – $143,000
$126,000 – $146,000
Married filing separately
$0 – $10,000
$0 – $10,000
Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a:
2024
2025
Joint return with a spouse who is covered by an
employer-sponsored retirement plan
$230,000 – $240,000
$236,000 – $246,000
Roth IRA compensation limits — Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as:
2024
2025
Single
$146,000 – $161,000
$150,000 – $165,000
Married filing jointly
$230,000 – $240,000
$236,000 – $246,000
Married filing separately
$0 – $10,000
$0 – $10,000
Qualified charitable distribution
2024
2025
Annual amount not includible in gross income
$105,000
$108,000
One-time exclusion for transfer to split-interest entity
$53,000
$54,000
Investment Planning
Maximum tax on long-term capital gains and qualified dividends
0% rate applies (taxable income thresholds)
2024
2025
Single
Up to $47,025
Up to $48,350
Married filing jointly
Up to $94,050
Up to $96,700
Married filing separately
Up to $47,025
Up to $48,350
Head of household
Up to $63,000
Up to $64,750
15% rate applies (taxable income thresholds)
2024
2025
Single
$47,025 to $518,900
$48,350 to $533,400
Married filing jointly
$94,050 to $583,750
$96,700 to $600,050
Married filing separately
$47,025 to $291,850
$48,350 to $300,000
Head of household
$63,000 to $551,350
$64,750 to $566,700
20% rate applies (taxable income thresholds)
2024
2025
Single
Over $518,900
Over $533,400
Married filing jointly
Over $583,750
Over $600,050
Married filing separately
Over $291,850
Over $300,000
Head of household
Over $551,350
Over $566,700
Unearned income Medicare contribution tax (“net investment income tax”)
Amount of tax
2024
2025
Tax percentage
3.80%
3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:
2024
2025
Individuals
$200,000
$200,000
Married filing jointly
$250,000
$250,000
Married filing separately
$125,000
$125,000
Understanding these numbers empowers taxpayers to make informed decisions about retirement savings and tax strategies. From contribution limits for retirement accounts to tax brackets and deductions, staying abreast of the latest figures is essential for optimizing financial outcomes. Whether you’re nearing retirement or just starting your career, being aware of these numbers enables you to maximize savings and minimize tax liabilities effectively. If you have any questions, please reach out to one of our advisors to talk this out.
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Stone Oak Wealth Management does not provide tax advice and a qualified tax accountant should be consulted.
