The IRS updates its inflation adjustments for each tax year annually.
The Internal Revenue Service (IRS) has released its full list of changing tax rules for 2025, and Americans are likely to see major updates to standard deductions and certain tax credits.
The IRS annually updates its inflation adjustments for each tax and the new rules will go into effect for tax returns filed starting in the 2026 filing season.
In 2026, for the tax year 2025, the standard deduction got a $400 boost, making it $15,000 for single filers. Married couples filing jointly will see a standard deduction of $30,000, which is up $800 from 2024.
“The higher standard deduction benefits those who do not itemize by allowing them to claim a larger deduction, reducing their taxable income”, Kevin Thompson, a finance expert and founder and CEO of 9i Capital Group, told Newsweek. “However, it affects taxpayers in high-cost-of-living states like New York and California, where property taxes are higher.”
The standard deduction refers to the portion of your income that is not subject to taxes, which essentially reduces the amount of your taxable income.
For heads of household in 2025, the standard deduction will be $22,500, up $600 from the amount for tax year 2024.
Marginal tax rates will also be pivotal in 2025.
