Key Tax Numbers That Have—and Haven’t—Changed for 2025: A cheat sheet for new brackets, deductions and credits you need to know for filing 2024 taxes and for this year’s tax planning

The U.S. tax code has many provisions that are adjusted for inflation and some that aren’t. Here’s a selection of key numbers to help with tax planning for 2025 and tax prep for 2024, plus useful references.

Some of these might change depending on what Congress does later this year. For now, though, these are the rules of the road.

Tax brackets are one of the first considerations for anyone preparing their taxes. These change each year, so it is important to know where you stand. Here are the brackets for last year and 2025.

Capital Gains and Dividends

Net profits on assets held longer than a year in a taxable account are “long-term capital gains” and are taxed at favorable rates of zero, 15% or 20%. These rates also apply to “qualified” dividends, and most dividends fall into this category.

Net investment income surtax

A 3.8% surtax on certain net investment income applies to single filers with modified adjusted gross income above $200,000 and joint filers with MAGI above $250,000. These income thresholds apply both for 2024 and 2025 since they aren’t adjusted for inflation.

Due dates for quarterly estimated payments

Unless extended by disaster declarations, they are/were:

For 2025: April 15; June 16; Sept. 15; and Jan. 15, 2026

For 2024: April 15; June 17; Sept. 16; and Jan. 15, 2025

Maximum wages and self-employment income subject to Social Security Tax

2025: $176,100

2024: $168,600

The ‘Kiddie Tax’

The unearned income of many children under age 24 who are dependents of their parents is taxed at the parents’ marginal income-tax rate. This tax is complicated, but it often applies to the child’s investment income above $2,700 for 2025 and $2,600 for 2024.

DEDUCTIONS, CREDITS AND OTHER EXEMPTIONS

Standard deduction

2025: $15,000 for single filers; $30,000 for married couples filing jointly

2024: $14,600 for single filers; $29,200 for joint filers

Additional standard deduction for age 65+

2025: $2,000 for single filers; $1,600 apiece for joint filers

2024: $1,950 for single filers; $1,550 apiece for joint filers

Home mortgage interest and homesellers’ exemption

For mortgages issued after Dec. 15, 2017, homeowners can deduct interest on a total of $750,000 of debt for a first and second home for both 2024 and 2025. Homeowners with existing mortgages as of Dec. 15, 2017, can continue to deduct interest on a total of $1 million of debt for a first and second home.

These limits aren’t indexed for inflation. For more details, including on refinancings and home-equity loans, see IRS Publication 936.

The homesellers’ exemption is up to $500,000 of gain on the sale of a principal home for married couples filing jointly and $250,000 for single filers for both 2024 and 2025. It is not adjusted for inflation. See IRS Publication 523. 

Charitable contributions

Taxpayers can deduct certain charitable contributions if they itemize on Schedule A. Donors 70 ½ and older often benefit more if they make qualified charitable distributions, or QCDs, directly from traditional IRAs to charities. With an IRA charitable gift annuity, the donor can contribute IRA funds to charity in return for a small annuity.

Limits can apply to charitable deductions, with the excess amount carrying forward for future use. For 2025 and 2024, cash donations typically may be deducted up to 60% of adjusted gross income, while in other cases the limits are 20%, 30% or 50%.

Taxpayers also must have proper confirmation of their donations, especially those for $250 or more, to qualify for a deduction. For more information, see IRS Publication 526.

IRA owners who donate through QCDs or IRA charitable gift annuities are subject to limits. While IRA owners can do QCDs annually, they can only do IRA charitable gift annuities once in their lifetime.

2025: $108,000 for QCDs; $54,000 for IRA charitable gift annuities

2024: $105,000 for QCDs; $53,000 for IRA charitable gift annuities

State and local taxes

The deduction for state and local property and either income or sales taxes has been capped at $10,000 per return since 2017. It applies both to single and married joint filers. If a married couple files separately, each spouse can deduct up to $5,000.

Medical expenses

A range of unreimbursed medical and dental expenses are deductible to the extent that they exceed 7.5% of the filer’s adjusted gross income and the filer itemizes on Schedule A. See IRS Publication 502.

Child or dependent tax credit

The tax credit for each child under age 17 at year-end is up to $2,000, both for 2025 and 2024. It begins to phase out at $400,000 of adjusted gross income for most married joint filers and $200,000 for most single filers.

For other dependents, the credit is up to $500, both for 2025 and 2024. It has a similar income phaseout.

Tax breaks for education

The American Opportunity Tax Credit provides a maximum tax reduction of $2,500 per student per year. It is available for the first four years of postsecondary education and applies to tuition and course-related expenses but not room and board.

The Lifetime Learning Credit is typically less generous but applies to a broader range of expenses. The maximum tax reduction is $2,000 per return per year. It can be used for graduate education, continuing education and jobs-skills classes in addition to undergraduate education.

Taxpayers with student-loan interest can typically deduct up to $2,500 of it each year. The limit is per tax return, so single filers and married joint filers get the same amount.

All three benefits are subject to income phase-outs. See IRS Publication 970. 

Electric-vehicle tax credit

Certain new electric vehicles bought in 2025 and 2024 qualify for tax credits up to $7,500. The credit isn’t available to married joint filers with modified adjusted gross income above $300,000 and single filers with MAGI above $150,000.

Smaller credits are available for used vehicles. Not all electric vehicles are eligible for these credit; see details here.

RETIREMENT SAVING

Traditional and Roth IRA contributions

2025 and 2024: up to $7,000, plus $1,000 for savers age 50 and older

Note: The ability to make a Roth IRA contribution phases out at higher incomes, and the tax deduction for contributions to traditional IRAs also phases out at higher incomes. For details, see IRS Publication 590-A.

Employer savings plans, such as 401(k)s and Roth 401(k)s

2025 regular contribution limit:

• Up to $23,500 for employees, plus $7,500 for savers age 50 and above

• Beginning in 2025, savers age 60-63 can contribute an extra $3,750

2025 total contribution limit:

• $70,000, plus $7,500 for savers age 50 and above.

• Beginning in 2025, savers age 60-63 can contribute an extra $3,750

• The total limit applies to both employer and employee contributions to 401(k) and similar plans, including Solo 401(k)s, so-called mega backdoor Roth 401(k)s and SEP plans.

HEALTH SAVINGS ACCOUNTS

Health-savings accounts allow workers with qualified high-deductible health plans to save pretax dollars in HSAs and later withdraw them tax-free to cover unreimbursed health expenses. Employers can make contributions as well. At age 65, HSA owners can also withdraw funds without penalty for other reasons, but the payouts will be taxable unless they are for unreimbursed health expenses.

2025 contributions: up to $4,300 for self-only coverage and up to $8,550 for family coverage, plus $1,000 for those age 55 and older

2024 contributions: up to $4,150 for self-only coverage and up to $8,300 for family coverage, plus $1,000 for those age 55 and older

ESTATE AND GIFT TAXES

The combined lifetime estate- and gift-tax exemption is $13.99 million per individual for 2025 and $13.61 million for 2024. The top rate on amounts above that is 40%.

The annual gift-tax exclusion is:

• $19,000 for 2025

• $18,000 for 2024

This provision allows a person to give a recipient assets or cash up to that amount during a year with no gift-tax consequences. There is no limit on the number of recipients, and these gifts don’t count toward the lifetime exemption.

Source: WSJ