Everwise Investment Services
2025 Tax Tables
2025 tax rates, schedules, and contribution limits
Income Tax
Married/Filing Jointly or Qualifying Widow(er)s
| If taxable income is over | But not over | The tax is | Of the amount over |
|---|---|---|---|
| $0 | $23,850 | $0 + 10% | $0 |
| $23,850 | $96,950 | $2,385 + 12% | $23,850 |
| $96,950 | $206,700 | $11,157 + 22% | $96,950 |
| $206,700 | $394,600 | $35,302 + 24% | $206,700 |
| $394,600 | $501,050 | $80,398 +32% | $394,600 |
| $501,050 | $751,600 | $114,462 + 35% | $501,050 |
| $751,600 | $202,154.50 + 37% | $751,600 |
Single
| If taxable income is over | But not over | The tax is | Of the amount over |
|---|---|---|---|
| $0 | $11,925 | $0 + 10% | $0 |
| $11,925 | $48,475 | $1,192.50 + 12% | $11,925 |
| $48,475 | $103,350 | $5,578.50 + 22% | $48,475 |
| $103,350 | $197,300 | $17,651 + 24% | $103,350 |
| $197,300 | $250,525 | $40,199 + 32% | $197,300 |
| $250,525 | $626,350 | $57,231 + 35% | $250,525 |
| $626,350 | $188,769.75 + 37% | $626,350 |
Estates and trusts
| If taxable income is over | But not over | The tax is | Of the amount over |
|---|---|---|---|
| $0 | $3,150 | $0 + 10% | $0 |
| $3,150 | $11,450 | $315 + 24% | $3,150 |
| $11,450 | $15,650 | $2,307 + 35% | $11,450 |
| $15,650 | $3,777 + 37% | $15,650 |
Tax on corporations and other businesses
- 21% tax rate applied on C-corporation income
- Taxpayers may generally deduct up to 20% of the qualified business income (QBI) of S corporations, partnerships, and sole proprietorships (reduced by net capital gain and qualified dividends), subject to limitations:
- Deduction generally not available for a Specified Service Trade or Business (SSTB) if taxable income exceeds $247,300 (single) or $494,600 (married/ filing jointly); the deduction is subject to a phaseout unless taxable income is at or below $197,300 (single) or $394,600 (married/filing jointly)
- If taxable income exceeds $247,300 (single) or $494,600 (married/filing jointly), the deduction is limited to the lesser of: (a) 20% of QBI or (b) the greater of (i) 50% of W-2 wages paid by each business or (ii) 25% of W-2 wages paid by each business plus 2.5% of the unadjusted basis of qualified property; wage and qualified property limitations are not applicable to taxable incomes at or below $197,300 (single) or $394,600 (married/filing jointly) and are fully phased in once taxable income exceeds $247,300 (single) or $494,600 (married/filing jointly)
Employer retirement plans
| Maximum elective deferral to retirement plans, e.g., 401(k), 403(b) | $23,500 |
| Catch-up contribution limit for 401(k), 403(b), and certain 457 plans (beginning at age 50) | $7,500 |
| Catch-up contribution limit for 401(k), 403(b), and certain 457 plans (ages 60-63) | $11,250 |
| Maximum elective deferral to SIMPLE plans | $16,500 |
| Catch-up contribution limit for SIMPLE plans (beginning at age 50) | $3,500 |
| Catch-up contribution limit for SIMPLE plans (ages 60-63) | $5,250 |
| Maximum elective deferral to 457 plans of government and tax-exempt employers | $23,500 |
| Limit on annual additions to defined contribution plans | $70,000 |
| Annual compensation threshold requiring SEP contribution | $750 |
| Limit on annual additions to SEP plans | $70,000 |
| Annual benefit limit under defined benefit plans | $280,000 |
| Health flexible spending account maximum salary reduction contribution | $3,300 |
The SECURE 2.0 law allows individuals in SIMPLE IRAs to contribute 10% more if their plan meets certain requirements: (a) the plan has no more than 25 participants or, (b) if the employer elects to make a higher matching or non-elective contribution regardless of plan size. The higher contribution applies to elective salary deferrals and the catch-up contribution for those who reach age 50.
Tax on capital gains and qualified dividends
| Single | Married/Filing jointly/Qualifying widow(er) | Tax rate |
|---|---|---|
| $0–$48,350 | $0–$96,700 | 0% |
| Over $48,350 but not over $533,400 | Over $96,700 but not over $600,050 | 15% |
| Over $533,400 | Over $600,050 | 20% |
Additional 3.8% federal net investment income (NII) tax applies to individuals on the lesser of NII or modified AGI more than $200,000 (single) or $250,000 (married/filing jointly and qualifying widow(er)s). Also applies to any trust or estate on the lesser of undistributed NII or AGI more than the dollar amount at which the estate/trust pays income taxes at the highest rate ($15,650).
Kiddie Tax*
Child’s unearned income above $2,700 is generally subject to taxation at the parent’s marginal tax rate; unearned income above $1,350 but not more than $2,700 is taxed at the child’s tax rate.
* Applies if either parent of the child is alive at the close of the taxable year, the child does not file a joint return for the taxable year, and the child either (a) has not attained age 18 by close of the year, (b) has attained age 18 before the close of the year, but the child’s earned income represents not more than one half of support needs and the child has not attained age 19 by the close of the year, or (c) the child is a full-time student who has not attained age 24 as of the close of the year and the child’s earned income represents not more than one half of support needs.
Preferential rates on long-term capital gains and qualified dividends are applicable; 3.8% federal NII tax is imposed separately on each child if modified AGI exceeds threshold amounts stated above.
Child Tax Credit
- $2,000 per “qualifying child” (who has not attained age 17 during the year); phased out as modified AGI exceeds $400,000 (married/filing jointly) or $200,000 (all other); $1,700 per child is refundable
- $500 nonrefundable credit for qualified dependents other than qualifying children (with some modified AGI phaseouts)
Standard deductions
| Filing Status | Annual | Additional age 65+ or blind |
|---|---|---|
| Married/Filing jointly and qualifying widow(er)s | $30,000 | $1,600 |
| Single | $15,000 | $2,000 |
Health savings accounts contribution limits
| Filing Status | Limit |
|---|---|
| Individual | $4,300 |
| Family | $8,550 |
Catch-up contribution: Taxpayers who are 55 or older in 2025 may contribute an additional $1,000, or a total of $5,300 for individuals and $9,550 for families.
Deduction for mortgage interest
- Deduction on interest for qualifying mortgages up to $750,000 ($375,000 if married/filing separately); homes under agreement before 12/15/17 for purchase prior to 1/1/18 (provided purchase occurred by 4/1/18) grandfathered under previous $1,000,000 ($500,000 if married/filing separately) limits.
- Interest on home equity lines of credit (HELOC) deductible in certain cases where proceeds are utilized to acquire or improve a residence.
Deduction for state and local taxes
Individuals may deduct state and local income (or sales) taxes and real and personal property taxes up to $10,000 ($5,000 if married filing separately) in the aggregate.
Maximum Qualified Long-Term-Care insurance premiums eligible for deduction
| Age | 40 or less | >40, ≤50 | >50, ≤60 | >60, ≤70 | Over 70 |
|---|---|---|---|---|---|
| $480 | $900 | $1,800 | $4,810 | $6,020 |
Traditional IRAs
Maximum annual contribution
- Lesser of compensation or $7,000
- Up to $7,000 contribution can also be made for nonworking spouse
- Catch-up contributions (age 50 and over): $1,000
Traditional IRA deductibility table
| Filing Status | Covered by employer's retirement plan |
Modified AGI 2024 | Modified AGI 2025 | Deductibility |
|---|---|---|---|---|
| Single | No | Any amount | Any amount | Full |
| Yes | $77,000 or less | $79,000 or less | Full | |
| Yes | $77,001 - $86,999 | $79,001 - $88,999 | Partial | |
| Yes | $87,000 or more | $89,000 or more | None | |
| Married/Jointly | Neither spouse covered | Any amount | Any amount | Full |
| Married/Jointly | Both spouses covered | $123,000 or less | $126,000 or less | Full |
| $123,001 - $142,999 | $126,001 - $145,999 | Partial | ||
| $143,000 or more | $146,000 or more | None | ||
| Married/Jointly | Yes, but spouse is not covered | $123,000 or less | $126,000 or less | Full |
| $123,001 - $142,999 | $126,001 - $145,999 | Partial | ||
| $143,000 or more | $146,000 or more | None | ||
| Married/Jointly | No, but spouse is covered | $230,000 or less | $236,000 or less | Full |
| $230,001 - $239,999 | $236,001 - $245,999 | Partial | ||
| $240,000 or more | $246,000 or more | None |
Roth IRAs
Maximum annual contribution
- Lesser of compensation or $7,000
- Up to $7,000 contribution can also be made for nonworking spouse
- Catch-up contributions (age 50 and over): $1,000
Contribution eligibility
Modified AGI is less than $150,000 (single) or $236,000 (married/filing jointly); phaseouts apply if modified AGI is $150,000–$164,999 (single) or $236,000–$245,999 (married/filing jointly).
Deductibility
Contributions to Roth IRAs are not deductible.
Conversion eligibility
There is no income restriction on eligibility for a Roth IRA conversion.
Social Security Benefit
Base amount of modified AGI causing Social Security benefits to be taxable
| Filing Status | Up to 50% taxable | Up to 85% taxable |
|---|---|---|
| Married/Filing jointly | $32,001 - $44,000 | >$44,000 |
| Single | $25,001 - $34,000 | >$34,000 |
Maximum earnings before Social Security benefits are reduced
| Under full retirement age ($1 withheld for every $2 above limit) |
$22,400 |
| Full retirement age and over | No limit* |
* Interim annual limit of $62,160 applies for whole months prior to attaining full retirement age during year individual reaches full retirement age ($1 withheld for every $3 above limit).
Maximum compensation subject to FICA taxes
| OASDI (Social Security) maximum | $176,100 |
| HI (Medicare) maximum | No limit |
OASDI and HI tax rate: 12.4% OASDI and 2.9% HI (15.3% combined) for self-employed; 6.2% and 1.45% (7.65% combined) for employees. An additional 0.9% HI tax imposed on individuals with wages or self-employment income in excess of $200,000 (single and qualifying widow(er)s) or $250,000 (married/ filing jointly).
Death/gifts occurring in 2025*
(Subtract applicable credit from calculated tax)
| If gift/gross is over | But not over | The tax is | Of the amount over |
|---|---|---|---|
| $0 | $10,000 | $0 + 18% | $0 |
| $10,000 | $20,000 | $1,800 + 20% | $10,000 |
| $20,000 | $40,000 | $3,800 + 22% | $20,000 |
| $40,000 | $60,000 | $8,200 + 24% | $40,000 |
| $60,000 | $80,000 | $13,000 + 26% | $60,000 |
| $80,000 | $100,000 | $18,200 + 28% | $80,000 |
| $100,000 | $150,000 | $23,800 + 30% | $100,000 |
| $150,000 | $250,000 | $38,800 + 32% | $150,000 |
| $250,000 | $500,000 | $70,800 + 34% | $250,000 |
| $500,000 | $750,000 | $155,800 + 37% | $500,000 |
| $750,000 | $1,000,000 | $248,300 + 39% | $750,000 |
| $1,000,000 | $345,800 + 40% | $1,000,000 |
* Annual gift tax exclusion: individual, $19,000; married electing split gifts, $38,000. Combined lifetime gift tax and gross estate tax exemption: $13,990,000. GST tax exemption: $13,990,000.
Higher education tax credits
Modified AGI phaseouts for American Opportunity Tax Credit
| Married/Filing jointly | $160,001 - $179,999 |
| Others | $80,001 - $89,999 |
Modified AGI phaseouts for Lifetime Learning Credit
| Married/Filing jointly | $160,001 - $179,999 |
| Single | $80,001 - $89,999 |
AMT exemptions
| Single | $85,700 |
|---|---|
| Married/Filing jointly and qualifying widow(er)s | $133,300 |
Phases out beginning with alternative minimum taxable income over $1,252,700 (married/filing jointly and qualifying widow(er)s) or $626,350(single filers); AMT ordinary income rate increases from 26% to 28% for alternative minimum taxable income over $239,100 (single; married/filing jointly; and qualifying widow(er)s).
Sources: IRS and Social Security Administration updates 2025.
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