Tax Law Highlights: 2025
Related Tax Information for 2025 That Could Impact You
With a new year comes change, including updates from the IRS to the standard deduction and charitable contribution limits. These changes are a not-so-subtle reminder from the IRS of the importance of incorporating a charitable-giving strategy into any wealth or tax planning for the year. Depending on what 2025 will look like for you, there may be ways to make an extraordinary impact on the causes you care about while potentially lessening your taxable liability. Below are the most notable IRS changes to the standard deduction, estate tax, and more from 2024 to 2025.
2025 Tax Bracket & Federal Income Tax Rates
2025 Standard Deductions
For single taxpayers and married individuals filing separately for the tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024.
For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024.
For heads of households, the standard deduction will be $22,500 for the tax year 2025, an increase of $600 from the amount for the tax year 2024.
Marginal Tax Rates*
For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The lowest rate is 10% for single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly).
*After 12/31/2025 marginal tax rates, aside from the first two brackets (10% and 15%), will be determined differently than under the Tax Cut and Jobs Act (TCJA) and return to the pre-TCJA levels (2017). Those ranges will also be adjusted for inflation.
The alternative minimum tax (AMT) exemption amount for 2023 is $81,300 and begins to phase out at $578,150 ($126,500 for married couples filing jointly, for whom the exemption begins to phase out at $1,156,300). The 2022 exemption amount was $75,900 and began to phase out at $539,900 ($118,100 for married couples filing jointly for whom the exemption began to phase out at $1,079,800).
Alternative Minimum Tax
The Alternative Minimum Tax exemption amount for the tax year 2025, the exemption amount for unmarried individuals increases to $88,100 ($68,650 for married individuals filing separately) and begins to phase out at $626,350. For married couples filing jointly, the exemption amount increases to $137,000 and begins to phase out at $1,252,700.
Estate Tax
For qualifying taxpayers who have three or more qualifying children, the tax year 2025 maximum Earned Income Tax Credit amount is $8,046, an increase from $7,830 for the tax year 2024. The revenue procedure contains a table providing the maximum EITC amount for other categories, income thresholds, and phase-outs.
Gift Exclusion
The annual exclusion for gifts increases to $19,000 for the calendar year 2025, increased from $18,000 for the calendar year 2024. The charitable contribution limit for a gift of cash to a public charity or donor-advised fund remains 60% of one’s adjusted gross income (AGI), and the limit for non-cash gifts remains 30% of AGI.
Capital Gains Tax Rates and Brackets
A capital gains tax is levied on the profit made from selling an asset and is often in addition to corporate income taxes, frequently resulting in double taxation. Capital gains taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment.
Long-term capital gains face different brackets and rates than ordinary income.
Capital Gains Tax Brackets
Qualified Business Income Deduction
The Tax Cuts and Jobs Act of 2017 (TCJA) includes a 20% deduction for pass-through businesses. Limits on the deduction begin The Tax Cuts and Jobs Act of 2017 (TCJA) includes a 20 percent deduction for pass-through businesses. Limits on the deduction begin phasing in for taxpayers with income above $197,300 (or $394,600 for joint filers) in 2025.
2025 Qualified Business Income Deduction Thresholds
Your charitable donations are tax-deductible. The ministry’s tax identification number is 95-6006173. Jesus Film Project® is a ministry of Campus Crusade for Christ International®. The ministry operates under the brand name Cru® in the United States.
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