New Tax Brackets For 2025 Compared To 2025 Tax Brackets

New Tax Brackets For 2025 Compared To 2025 Tax Brackets. The irs adjusted 2025 tax brackets for inflation, increasing income thresholds by about 2.8% from 2024, allowing more income to be taxed at lower rates. Introduced in budget 2020, the new tax regime offers lower tax rates with fewer exemptions and deductions:

Tax season will officially begin on january 22 as the irs will begin accepting returns. The irs has increased tax brackets by 2.75% for 2025, with the top rate of 37%.