Tax brackets and exemption limits often change from year to year. Check these eight planning to-dos when you file your taxes.
Quick takeaways
It’s never too early for a head start on prep for filing your yearly taxes. Use these insights about what’s new, what’s changed, and what you may still be able to do to save on your taxes.
Changes in your salary may affect the overall federal tax rate you pay.
| Income tax rates | Single | Married filing jointly |
|---|---|---|
| 10% | $11,925 or less | $23,850 or less |
| 12% | Over $11,925 | Over $23,850 |
| 22% | Over $48,475 | Over $96,950 |
| 24% | Over $103,350 | Over $206,700 |
| 32% | Over $197,300 | Over $394,600 |
| 35% | Over $250,525 | Over $501,050 |
| 37% | $626,350+ | $751,600+ |
Standard deductions replaced personal exemptions, and the amounts have increased from 2024.
- Single taxpayers and married individuals filing separately: $15,000
- Married, filing jointly: $30,000
- Heads of households: $22,500
Learn more from the IRS about credits and deductions for individuals.
This is applicable for dependents under the age of 17 who meet eligibility requirements. The IRS has specific details about how a dependent qualifies for a child tax credit.
If you itemize deductions, you can take a $40,000 maximum deduction—$20,000 if married filing separately—on any combination of state and local income, real estate, and personal property taxes, up to certain income phase-down limits. That phase down begins with incomes above $500,000 but ends with a $10,000 deduction for the highest incomes. Alternatively, you may elect to substitute state and local sales taxes for income taxes, but you can’t use both.
You may deduct up to $750,000 ($375,000 if married filing separately) if you take out a new loan for a first or second home between December 15, 2017, and December 31, 2025. Interest from home equity loans is no longer deductible, regardless of when you took out the loan. Note that in 2026, you’ll be able to deduct private mortgage insurance—generally required when a home down payment is less than 20%.
If you decide to sell your primary residence, and you’ve lived there for two of the last five years, single filers can still exclude up to $250,000 (married couples up to $500,000) from capital gains taxes. (This is a tax levied on profits you make when you sell for a price higher than what you originally paid, plus the cost of upgrades other than simple maintenance and repairs.)
The AMT basically sets a bottom percentage that very high-income earners must pay. (Your tax professional can offer more insight.) For 2025 filing purposes, your income must exceed $239,100 for married filing jointly or $119,550 for married filing separately. Note that those numbers will change when you file your 2026 taxes.
In 2025, the amount of money exempt from the estate tax increased to just over $13.99 million for individuals and $27.98 million. Less than 1% of all estates
An easy way to lower your taxable income? Boost contributions to your employer-sponsored retirement account like a 401(k). Check your contributions by logging in to your account and adjusting your contributions.
