New 2025 Standard Deduction. Making the 20% deduction for qualified business income permanent, while reducing corporate tax rates further. Here's a look at the changes unveiled by the irs that will take effect for the 2025 tax year and returns that are filed in 2026.
For 2025 (returns you’ll usually file in early 2026), the top tax rate of 37% will now apply to single filers with incomes exceeding $626,350, up from $609,350 in 2024. The standard deduction in 2025 will rise to $30,000 for married couples filing jointly, a roughly 2.7% increase from the current tax year’s.