Federal Tax Inflation Adjustments for 2025

Summary
The IRS announced annual inflation adjustments affecting standard deductions, tax brackets, and other thresholds for 2025.

What Changed

• Increased standard deduction amounts

• Inflation-adjusted tax brackets

• Updated thresholds for multiple tax provisions

Who Is Affected

• Individual taxpayers

• Families and households

• Taxpayers making estimated payments

What This Means
These adjustments may reduce taxable income but may also require withholding or estimated tax reviews.

CTA
For tax planning assistance, contact Shah & Lee Associates, LLC.

Source: IRS Inflation Adjustments
https://www.irs.gov/newsroom