Bloomberg Tax Predicts 2025 Standard Tax Rates, Standard Deductions, and AMT

Bloomberg Tax & Accounting has released its 2025 Projected U.S. Tax Rates, which indicate inflation-adjusted amounts in the tax code will increase 2.8% from 2024. This is about half the increase in 2024, and a significant drop from the 7.1% increase in 2023. The full report is available at: https://aboutbtax.com/bfzW.

Bloomberg Tax’s annual Projected U.S. Tax Rates Report provides early, accurate notice of the potential tax savings that could be realized due to increases in deduction limitations, upward adjustments to tax brackets, and increases to numerous other key thresholds.

The report accounts for changes made under the SECURE 2.0 Act that affect tax planning for corporate taxpayers in certain industries. They include an increase in the threshold amount for qualified salary reduction arrangements under §408(p) from $5,000 to $5,100 and an increase in the qualified long-term care distribution amount under §401(a) from $2,500 to $2,600.

This year’s report projects that several key deductions for taxpayers will see notable year-over-year increases, with the foreign earned income exclusion increasing from $126,500 to $130,000, and the annual exclusion for gifts increasing from $18,000 to $19,000, thereby allowing taxpayers to increase their gifts without tax implications.

“Year after year, our annual report equips tax professionals and taxpayers with crucial forecasts to prepare for the forthcoming year, ahead of the IRS’s official declaration,” said Heather Rothman, Vice President, Analysis & Content, Bloomberg Tax & Accounting. “As inflation continues to impact the tax code, Bloomberg Tax & Accounting offers the research and tools to solve day-to-day workflow issues by providing intelligence exactly where users need it.”

The updated rates flow directly into Bloomberg Tax’s innovative software solutions including Bloomberg Tax Provision, Bloomberg Tax Fixed Assets, and Bloomberg Tax Workpapers. This is an example of the power and efficiency of Bloomberg Tax & Accounting’s integrated suite of solutions, which modernizes the corporate tax process, from data collection to tax calculations that power key deliverable.

Other key adjustments, with comparisons of the 2024 amounts and 2025 projections, include:

Individual Income Tax Rate Brackets

Married Filing Jointly and Surviving Spouses
2024 Tax Rate Bracket Income Ranges	Projected 2025 Tax Rate Bracket Income Ranges
10% – $0 to $23,200	10% – $0 to $23,850
12% – Over $23,200 to $94,300	12% – Over $23,850 to $96,950
22% – Over $94,300 to $201,050	22% – Over $96,950 to $206,700
24% – Over $201,050 to $383,900	24% – Over $206,700 to $394,600
32% – Over $383,900 to $487,450	32% – Over $394,600 to $501,050
35% – Over $487,450 to $731,200	35% – Over $501,050 to $751,600
37% – Over $731,200	37% – Over $751,600
Unmarried Individuals (other than Surviving Spouses and Heads of Households)
2024 Tax Rate Bracket Income Ranges	Projected 2025 Tax Rate Bracket Income Ranges
10% – $0 to $11,600	10% – $0 to $11,925
12% – Over $11,600 to $47,150	12% – Over $11,925 to $48,475
22% – Over $47,150 to $100,525	22% – Over $48,475 to $103,350
24% – Over $100,525 to $191,950	24% – Over $103,350 to $197,300
32% – Over $191,950 to $243,725	32% – Over $197,300 to $250,525
35% – Over $243,725 to $609,350	35% – Over $250,525 to $626,350
37% – Over $609,350	37% – Over $626,350

Standard Deduction

Filing Status	2024 Standard Deduction	Projected 2025 Standard Deduction
Married Filing Jointly/Surviving Spouses	$29,200	$30,000
Heads of Household	$21,900	$22,500
All Other Taxpayers	$14,600	$15,000

Alternative Minimum Tax (AMT)

Filing Status	2024 AMT Exemption Amount	Projected 2025 AMT Exemption Amount
Married Filing Jointly/Surviving Spouses	$133,300	$137,000
Unmarried Individuals (other than Surviving Spouses)	$85,700	$88,100
Married Filing Separately	$66,650	$68,500
Estates and Trusts	$29,900	$30,700

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