The IRS has adjusted federal income tax brackets and the standard deduction for inflation. This means you might owe less tax this year, or get a bigger refund.
Estimate Your Refund
Use the new 2025 brackets to see your potential refund.
New Standard Deductions for 2025
- Single Filers: $15,000 (Up from $14,600)
- Married Jointly: $30,000 (Up from $29,200)
- Head of Household: $22,500 (Up from $21,900)
Why does this matter?
Because the standard deduction is higher, more of your income is tax-free. If your salary didn't increase significantly, your taxable income is lower, meaning you keep more money.
Action Step: Update Your W-4
If you want to see this extra money in your paycheck now (instead of waiting for a refund next year), ask your employer for a new W-4 form and adjust your withholdings.