The marginal rate thresholds are also increasing substantially, with the top rate of 37% applying for individuals with incomes above $626,350 (or $751,600 for married couples filing jointly) and the bottom rate of 10% applying for individual incomes of $11,925 or less (or $23,850 or less for married couples filing jointly).
Tax year 2025 will also bring changes to Alternative Minimum Tax exemption amounts. Specifically, the exemption amount for individual taxpayers in 2025 is increasing to $88,100 (or $68,650 for married couples filing separately). This exemption will begin to phase out at $626,350. For married couples who are filing jointly, the AMT exemption increases to $137,000 and will begin phasing out at $1,252,700.
Notably, the Colcom Group analysis points out, not all provisions in the tax code change each year — at least under the current tax paradigm. This includes personal exemptions, itemized deduction limits and lifetime learning credits.
The bottom line from a planning perspective?
“Talk to a tax professional,” the firm’s analysis concludes. “Many taxpayers will be affected by these changes in 2025 and beyond, so it’s important to be aware of these adjustments in order to plan ahead.”
