We’re in the strange time of year tax-wise – where you may have just filed 2023 returns, are in the middle of running final forecasts for 2024 taxes, and now – it’s time to think about 2025! Never a dull moment!

The 2025 tax brackets were just released and I’ve had a few discussions with clients this week to discuss what’s changed and what it likely means for them.

Here is a link to the 2025 income tax brackets – as you will see, there is a bit more room in each bracket due to increases to reflect inflation. There is no change in the marginal tax brackets for 2025 (as the Trump tax cuts remain in effect thru the end of that year).

The standard deduction levels also increased, as did other items such as the capital gains brackets and the estate and gift tax exemption. Details can be found in the linked article above.

Now that you know the playing field for 2025, you can begin to strategize for 2025 and start to determine the tax impacts of your income levels and any planned actions you have for the upcoming year (such as retirement account distributions or charitable donations).

As always, we highly suggest you work closely with a tax advisor to properly assess your specific situation.