Let’s talk about the new 2025 tax brackets.

Let’s discuss the new 2025 tax brackets—and how understanding them may put money back in your pocket. When you know what’s changing and plan, you can potentially keep more of your hard-earned cash, potentially skip unpleasant tax surprises, and hopefully breeze through tax season with less stress.

The 2025 Tax Brackets: What’s New?

Here’s the headline: there are still seven tax rates, from 10% up to 37%, but the income thresholds have gone up. That means you can earn a bit more before moving into a higher tax bracket—a potential win for your wallet.

For 2025, here’s a quick cheat sheet:

• If you’re single, the 12% bracket applies to income of up to almost $50,000.
• Married and filing jointly? Your 12% bracket nearly doubles to just under $97,000.
• Sure, higher rates still apply as you earn more, but every bracket now gives you a bit more breathing room than last year.

The standard deduction is up, too: singles can now write off $15,000, joint filers get $30,000, and heads of household receive $22,500. Anyone 65 or older gets a bonus $6,000 deduction through 2028.

How Can You Optimize for 2025?

Let’s get practical:

1. Know Your Bracket.
   Take a few minutes to check which bracket you’ll fall into. Even small steps can make a big difference—helping your future self and keeping more of your earnings away from higher taxes.
2. Leverage Deductions.
   Sometimes it pays to stack (or “bunch”) deductions—like medical expenses over 7.5% of your income, or charitable donations you make in the same year. Try grouping these into one tax year for a bigger impact. Then, compare your total deductions to the new, higher standard deduction to see which saves you more.
3. Boost Retirement & Health Savings.
   Every dollar you put into your 401(k), IRA, or HSA shrinks your tax bill now—and grows for your future.
4. Be Smart About Big Moves.
   Thinking about selling an investment or converting to a Roth IRA? It’s smart to check how that could affect your taxes before December 31st, so you don’t accidentally bump yourself into a higher tax bracket.
5. Check Out New Credits.
   There are also more generous child tax credits and new breaks for seniors—don’t leave that money on the table.
6. Fine-tune Withholdings.
   Check out the new IRS online tool to update your paycheck withholdings for 2025. That way, you can avoid writing a big check at tax time or waiting ages for a refund. https://www.irs.gov/individuals/tax-withholding-estimator

The Big Takeaway

Here’s the bottom line: If you plan with the new brackets, deductions, and credits, you’ll have more chances to keep (and maybe even grow) your income. A little strategic tax planning can potentially put you in control of what you keep—and how you invest for your future.

Before the year wraps up, take a few minutes to review your numbers or chat with your advisor for a quick game plan. Put these changes to work, and you can possibly trade tax-time panic for tax-time confidence.

Disclosure

This talk is for general information only. It’s not legal, tax, or investment advice, and nothing here is an offer or solicitation for any security. You should always consult a tax professional or financial advisor, and make sure your decisions comply with the rules and guidance of the U.S. Securities and Exchange Commission. All details featured are believed accurate as of today but may evolve, so double-check the sources and IRS for updates. This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

Sources:
https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025
https://www.bankrate.com/taxes/tax-brackets/
https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions
https://www.usbank.com/wealth-management/financial-perspectives/financial-planning/tax-brackets.html
https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
https://www.fidelity.com/learning-center/personal-finance/tax-moves

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