Tax Brackets 2025 Vs 2024. The irs adjusted 2025 tax brackets for inflation, increasing income thresholds by about 2.8% from 2024, allowing more income to be taxed at lower rates. As your income goes up, the tax rate on the next layer of income is higher.
This is the smallest inflation adjustment in at least three years, following a 5.4% increase in 2024 and a 7.1% boost in. Tax brackets and tax rates.
