NEW YORK — For the upcoming tax year 2025, U.S. taxpayers will benefit from increased standard deductions, thereby allowing them to preserve a larger portion of their income from taxation in their future tax filings.

The Internal Revenue Service (IRS) revealed these enhancements in the annual inflation adjustments made public recently. For individuals filing as single and for those married filing separately, the standard deduction will rise to $15,000 in 2025, marking an increase of $400 from 2024’s rate.

For couples who opt for joint filing, the standard deduction is set to be $30,000 for the 2025 tax year, which is an increase of $800 compared to the previous year. Additionally, heads of households will see their standard deduction increase to $22,500, reflecting a rise of $600 from 2024.

Moreover, the income thresholds for all seven federal tax brackets will also be adjusted upward. For instance, single taxpayers will find that the top tax rate of 37% will apply to incomes exceeding $626,350 in 2025, compared to the previous threshold of $609,350 for 2024.

The IRS typically implements these adjustments yearly to reflect changes in inflation, which has shown a downward trend recently. Inflation in the U.S. fell to its lowest level in over three years last month, providing some positive economic indicators, although Americans still face significant financial pressures from rising prices.

Despite the increase in standard deductions for 2025, the enhancements announced are smaller than in previous years. For example, in last year’s tax adjustments, the IRS issued a rise of $750 for single filers between the 2023 and 2024 tax years, and increases of $1,500 for married couples filing jointly and $1,100 for heads of households.