As you navigate the financial landscape this year, staying informed about key tax updates is essential. To make things easier, we’ve prepared this concise guide, providing you with the latest tax rates, deductions, and other important figures at a glance. Whether you’re planning for retirement, managing investments, or exploring tax-efficient strategies, this resource is designed to support your financial goals.
INCOME TAXES
2025
| Over | But Not Over | The Tax Is | Of Excess Over |
| MARRIED FILING JOINTLY | ||||
| $0 | $23,850 | $0 | +10% | $0 |
| $23,851 | $96,950 | $2,385 | +12% | $23,850 |
| $96,951 | $206,700 | $11,157 | +22% | $96,950 |
| $206,701 | $394,600 | $35,302 | +24% | $206,700 |
| $394,601 | 501,050 | $80,397 | +32% | $394,600 |
| $501,051 | $751,600 | $114,461 | +35% | $501,050 |
| $751,601 | And Over | $202,153 | +37% | $751,600 |
| SINGLE | ||||
| $0 | $11,925 | $0 | +10% | $0 |
| $11,926 | $48,475 | $1,193 | +12% | $11,925 |
| $48,476 | $103,350 | $5,578 | +22% | $48,475 |
| $103,351 | $197,300 | $17,651 | +24% | $103,350 |
| $197,301 | $250,525 | $40,198 | +32% | $197,300 |
| $250,526 | $626,350 | $57,230 | +35% | $250,525 |
| $626,351 | And Over | $188,769 | +37% | $626,350 |
| ESTATES AND TRUSTS | ||||
| $0 | $3,150 | $0 | +10% | $0 |
| $3,151 | $11,450 | $315 | +24% | $3,150 |
| $11,451 | $15,650 | $2,307 | +35% | $11,450 |
| $15,651 | And over | $3,776 | +37% | $15,650 |
2024
| Over | But Not Over | The Tax Is | Of Excess Over |
| MARRIED FILING JOINTLY | ||||
| $0 | $23,200 | $0 | +10% | $0 |
| $23,200 | $94,300 | $2,320 | +12% | $23,200 |
| $94,300 | $201,050 | $10,852 | +22% | $94,300 |
| $201,050 | $383,900 | $34,337 | +24% | $201,050 |
| $383,900 | $487,450 | $78,221 | +32% | $383,900 |
| $487,450 | $731,200 | $111,357 | +35% | $487,450 |
| $731,200 | And Over | $196,670 | +37% | $731,200 |
| SINGLE | ||||
| $0 | $11,600 | $0 | +10% | $0 |
| $11,600 | $47,150 | $1,160 | +12% | $11,600 |
| $47,150 | $100,525 | $5,426 | +22% | $47,150 |
| $100,525 | $191,950 | $17,169 | +24% | $100,525 |
| $191,950 | $243,725 | $39,111 | +32% | $191,950 |
| $243,725 | $609,350 | $55,679 | +35% | $243,725 |
| $609,350 | And Over | $183,647 | +37% | $609,350 |
| ESTATES AND TRUSTS | ||||
| $0 | $3,100 | $0 | +10% | $0 |
| $3,100 | $11,150 | $310 | +24% | $3,100 |
| $11,150 | $15,200 | $2,242 | +35% | $11,150 |
| $15,200 | And Over | $3,660 | +37% | $15,200 |
Standard Deduction
| 2025 | 2024 | |
| Married Filing Jointly | $30,000 | $29,200 |
| Head of Household | $22,500 | $21,900 |
| Single/Married Filing Separate | $15,000 | $14,600 |
| Additional (age 65 +, or blind) | ||
| Married Filing Jointly | $1,600 | $1,550 |
| Single, not surviving spouse | $2,000 | $1,950 |
Social Security & Medicare Payroll Taxes
| 2025 | 2024 | |
| Max. Taxable Wage Base for S.S. | $176,100 | $168,600 |
| Employee Tax Rate | 6.2% | 6.2% |
| Self-Employed Tax Rate | 12.4% | 12.4% |
| Medicare Payroll Tax | ||
| Employee Tax Rate (initial/over) | 1.45% / 2.35% | 1.45% / 2.35% |
| Self-Employed Tax Rate (initial/over) | 2.90% / 3.80% | 2.90% / 3.80% |
| Additional 0.9% Medicare Payroll Tax – Taxable Wage Base Thresholds | ||
| Married Filing Jointly | $250,000 | $250,000 |
| Married Filing Separately | $125,000 | $125,000 |
| Single / Head of Household | $200,000 | $200,000 |
Social Security Benefits
| 2025 | 2024 | |
| Taxable Portion of Social Security Benefits (85% taxable threshold) | ||
| Married Filing Jointly | > $44,000 | > $44,000 |
| Single | > $34,000 | > $34,000 |
| Single/Head of Household | $200,000 | $200,000 |
| Maximum Earned Income Before SS Benefits are Reduced | ||
| Under full Retirement | $23,400 | $22,320 |
| (Lose $1 for every $2 of earnings) | $1,950/month | $1,860/month |
| Maximum Monthly Benefit | $4,018 | $3,822 |
Capital Gains & Qualified Dividend 2025
| Assets held at least 12 months and qualified dividends |
|||
| Single | Married – Joint | Head Household | Tax Rate |
| up to $48,350 | up to $96,700 | up to $64,750 | 0% |
| up to $533,400 | up to $600,050 | up to $566,700 | 15% |
| over $533,400 | over $600,050 | over $566,700 | 20% |
| WA State Capital Gains Tax (7%) | 2025 | 2024 | |
| LT capital gains, in excess of: | $277,000 | $270,000 | |
Net Investment Income Tax
| 2025 | 2024 | |
| Add’l Tax On Investment Income | 3.8% | 3.8% |
| Married Filing Jointly | $250,000 | $250,000 |
| Married Filing Separately | $125,000 | $125,000 |
| Single/Head of Household | $200,000 | $200,000 |
Qualified Retirement Plans (Maximum Limits)
| 2025 | 2024 | ||
| SEP Plan Participants Max Percentage of Compensation* | 25% | 25% | |
| SEP Plan per Participant Maximum Dollar Allocation Limit | $70,000 | $69,000 | |
| SEP Minimum Compensation | $750 | $750 | |
| *20% if self employed | |||
| SIMPLE IRA Employee Contribution | $16,500 | $16,000 | |
| SIMPLE IRA Catch-Up (Age 50+) | $3,500 | $3,500 | |
| Age 60, 61, 62, 63 Catch up | $5,250 | N/A | |
| 401(k), 403(b), 457 Plan Elective Employee Deferral | $23,500 | $23,000 | |
| Age 50+ Catch-Up | $7,500 | $7,500 | |
| Age 60, 61, 62, 63 Catch up | $11,250 | N/A | |
| 403(b) TSA Catch-Up (15+ years of Service w/Current Employer) | $3,000 | $3,000 | |
| Defined Contribution Plan | |||
| Maximum Dollar Limit Per Participant | $70,000 | $69,000 | |
| Maximum Deduction Percentage of Eligible Payroll | 25% | 25% | |
| Defined Benefit Plan Maximum Benefit | $280,000 | $275,000 | |
| Covered Compensation Limit | $350,000 | $345,000 | |
| Highly Compensated Employee | $160,000 | $155,000 | |
IRAs
| 2025 | 2024 | ||
| Traditional or Roth IRA Contributions | $7,000 | $7,000 | |
| IRA Catch-Up (Age 50+) | $1,000 | $1,000 | |
| Phase Out Range for Deductible Contributions to Traditional IRAs** | |||
| Married Filing Jointly | $126,000- $146,000 | $123,000- $143,000 | |
| Single/Head of Household | $79,000- $87,000 | $77,000- $87,000 | |
| Married Filing Separately | $0- $10,000 | $0- $10,000 | |
| **For active participants in another retirement plan | |||
| Phase Out Range for Deductible Contributions to a Spousal IRA* | |||
| Married Filing Jointly | $236,000- $246,000 | $230,000- $240,000 | |
| *If you spouse is covered by a retirement plan at work | |||
| *If neither spouse has access to a retirement plan at work, all of your contributions will be deductible | |||
| Phase Out Range for Contributions to Roth IRAs | |||
| Married Filing Jointly | $236,000- $246,000 | $230,000- $240,000 | |
| Single/Head of Household | $150,000- $165,000 | $146,000- $161,000 | |
| Married Filing Separately | $0- $10,000 | $0- $10,000 | |
Health Savings Accounts (HSA)
| 2025 | 2024 | ||
| Family | $8,550 | $8,300 | |
| Individual | $4,300 | $4,150 | |
| HSA Catch-Up (Age 55+) | $1,000 | $1,000 | |
529 Plans
| 2025 | 2024 | ||
| Max annual gift (before gift tax) | $19,000 | $18,000 | |
| 5-year accelerated contribution | $95,000 | $90,000 | |
Coverdell Education Savings Accounts
| 2025 | 2024 | ||
| Maximum Contribution | $2,000/ beneficiary | $2,000/ beneficiary | |
| Phase-Out Range | |||
| Married Filing Jointly |
$190,000- $220,000 | $190,000- $220,000 | |
| Single | 95,000- 110,000 | 95,000- 110,000 | |
Gift & Estate Tax Rates
2025
| Over | But Not Over | The Tax Is | Of the Amount Over | |
| $0 | $10,000 | $0 | +18% | $0 |
| $10,000 | $20,000 | $1,800 | +20% | $10,000 |
| $20,000 | $40,000 | $3,800 | +22% | $20,000 |
| $40,000 | $60,000 | $8,200 | +24% | $40,000 |
| $60,000 | $80,000 | $13,000 | +26% | $60,000 |
| $80,000 | $100,000 | $18,200 | +28% | $80,000 |
| $100,000 | $150,000 | $23,800 | +30% | $100,000 |
| $150,000 | $250,000 | $38,800 | +32% | $150,000 |
| $250,000 | $500,000 | $70,800 | +34% | $250,000 |
| $500,000 | $750,000 | $155,800 | +37% | $500,000 |
| $750,000 | $1,000,000 | $248,300 | +39% | $750,000 |
| $1,000,000 | And Over | $345,800 | +40% | $1,000,000 |
| Annual Gift Tax Exclusion (Per Donee): | $19,000 | |||
| Estate & Gift Tax Applicable Exclusion Amount: | $13,990,000 | |||
| WA State Applicable Exclusion Amount: | $2,193,000 | |||
2024
| Over | But Not Over | The Tax Is | Of the Amount Over | |
| $0 | $10,000 | $0 | +18% | $0 |
| $10,000 | $20,000 | $1,800 | +20% | $10,000 |
| $20,000 | $40,000 | $3,800 | +22% | $20,000 |
| $40,000 | $60,000 | $8,200 | +24% | $40,000 |
| $60,000 | $80,000 | $13,000 | +26% | $60,000 |
| $80,000 | $100,000 | $18,200 | +28% | $80,000 |
| $100,000 | $150,000 | $23,800 | +30% | $100,000 |
| $150,000 | $250,000 | $38,800 | +32% | $150,000 |
| $250,000 | $500,000 | $70,800 | +34% | $250,000 |
| $500,000 | $750,000 | $155,800 | +37% | $500,000 |
| $750,000 | $1,000,000 | $248,300 | +39% | $750,000 |
| $1,000,000 | And Over | $345,800 | +40% | $1,000,000 |
| Annual Gift Tax Exclusion (Per Donee): | $18,000 | |||
| Estate & Gift Tax Applicable Exclusion Amount: | $13,610,000 | |||
| WA State Applicable Exclusion Amount: | $2,193,000 | |||
If you have any questions or need guidance on how these updates might impact your unique situation, don’t hesitate to reach out to us. We’re here to help you make the most of every opportunity!
Ryan Colis
CFA, CFP®
Partner, Financial Advisor
About the Author
Ryan is a problem solver. He has a distinct ability to create a simple solution for very complex puzzles. So, naturally, he’s an integral part of our team. His favorite part of his role at Alterra is the analysis – whether analyzing a financial plan or reviewing an investment portfolio. However, the profession allows him to share that passion with clients by helping them navigate financial complexities as they collaborate on achieving their personal and financial goals.
After completing his undergraduate degree in Business Management, Ryan and Grant met by chance, developed a rapport and have been working together ever since. Ryan has continued his formal training in finance by earning his CFP and CFA designations.
The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.