Taxpayers will have to comply with new tax rules in 2025 and for many the flat rate deduction will be significantly higher.

What’s new

Starting in January, many Americans will begin filing taxes for the 2024 tax year. Financial experts say some taxpayers could see more money without the IRS taking care of it.

The standard deduction, which is the amount of income protected from taxes, became stronger in 2025.

For married couples filing jointly, it is now $29,200, an increase of $1,500 in the 2023 tax year. For single filers, the standard deduction increased by $750 to $14,600.

The income tax brackets for the 2024 tax year have also been adjusted based on recent economic activity:

• Income over $609,350 ($731,200 for married couples filing jointly): 37%
• Income over $243,725 ($487,450 for married couples filing jointly): 35%
• Income over $191,950 ($383,900 for married couples filing jointly): 32%
• Income over $100,525 ($201,050 for married couples filing jointly): 24%
• Income over $47,150 ($94,300 for married couples filing jointly): 22%
• Income over $11,600 ($23,200 for married couples filing jointly): 12%
• Income of $11,600 or less ($23,200 for married couples filing jointly): 10%

And for the 2025 tax year, which affects tax returns filed in 2026, individual filers can shelter $15,000 from taxes. Meanwhile, married couples filing jointly received a $30,000 buffer.

Why it matters

However, looking ahead to 2026, taxes could become increasingly complicated.

With the Tax Cuts and Jobs Act set to expire on December 31, 2025, tax rates could increase dramatically in 2026.

The IRS also recently released its new tax brackets for the 2025 tax year, so these would apply to taxpayers filing their 2025 income in 2026:

• 37% for income over $626,350 ($751,600 for married couples filing jointly)
• 35% for income over $250,525 ($501,050 for married couples filing jointly)
• 32% for income over $197,300 ($394,600 for married couples filing jointly)
• 24% for income over $103,350 ($206,700 for married couples filing jointly)
• 22% for income over $48,475 ($96,950 for married couples filing jointly)
• 12% for income over $11,925 ($23,850 for married couples filing jointly)
• 10% for income of $11,925 or less ($23,850 or less for married couples filing jointly)

What you should know

There are also big changes for Social Security recipients in 2025. The cost of living adjustment was set at 2.5 percent, up from a 3.2 percent increase in 2024. This increases the average benefit amount of a retired worker by just $50 per month.

The maximum earnings subject to Social Security tax will also increase from $168,600 to $176,100.

When it comes to actual Social Security payments, the maximum benefit increases from $3,822 in 2024 to $4,018 in 2025. This maximum benefit is available to high earners who wait until their full retirement age to receive benefits.

What people say

Regarding the changes from the tax year 2024 to the tax year 2025: Michael Ryan, a financial expert and founder of michaelryanmoney.com, shared Newsweek: “That could mean an additional $400 to $800 that the IRS doesn’t take into account.”

“You might keep more of your hard-earned money without changing your income.”

Marginal tax rates and alternative minimum tax allowances will also be adjusted upward, while the earned income tax credit will rise to $8,046 for taxpayers with three or more children, it said Alex Beene, lecturer in financial literacy at the University of Tennessee at Martin.

“Most of the other changes address increased limits for flexible health spending accounts, medical savings accounts and qualified transportation fringe benefits,” Beene said Newsweek.

“Overall, these changes are beneficial for Americans as higher limits and credits should help provide some financial relief for both individuals and families.”

What happens next

The tax filing deadline is typically April, but the IRS typically gives Americans a head start as early as January.

“The 2025 tax filing season isn’t about compliance – it’s about opportunity,” Ryan said. “Understanding the nuances will transform potential stress into financial empowerment. Filing your taxes is less about what you owe and more about what you can strategically preserve.”