You may have just started thinking about your 2024 taxes, which are due next April, but the Internal Revenue Service (IRS) has already announced changes for tax year 2025 that will affect how you file your declarations in 2026.

Here’s how the 2025 changes compare to current rules.

How tax brackets and the standard deduction will change

To keep up with inflation, the IRS has increased tax amounts standard deduction, Alternative minimum tax (AMT), and Earned Income Tax Creditsamong several other elements.

The standard deduction for 2025 will increase by $400 to $15,000 for single and married filers filing separately and to $30,000 for married couples filing jointly. The AMT exemption threshold for single filers will increase from $85,700 to $88,100, and for married taxpayers it will increase by $3,700 to $137,000. Earned income tax credits are also expected to increase by $216.

Tax brackets have also been adjusted taxpayers would therefore pay the same proportion of their income, regardless of variations in inflation. Unless you get a 2.8% increase next year, your income won’t be taxed at a higher rate.

Some people can contribute more to their retirement plans next year

Individuals with a 401(k) account will be able to contribute $500 more to their retirement plan since the contribution limit has been raised, although the limits for Individual Retirement Account (IRA) remain the same.

THE catch-up contribution The cap, which allows people over 50 to make higher additional contributions to their retirement accounts, remains the same. However, starting in 2025, people aged 60 to 63 will be able to contribute up to $11,250, which is $3,750 more than other catch-up contribution limits.