2025 Tax Fast Facts
Tax rates and retirement guidelines
Federal Income Tax Rates for 2025
These tax rates are for 2025. Each year the IRS releases contribution limits for retirement savings accounts, including Federal Income tax rates, contribution limits for 401(k), 403(b), SIMPLE plans, as well as catch-up contributions, IRAs and Roth IRAs.
Married Filing Jointly
TAXABLE INCOME | TAX RATE |
$0.00+ | 10% |
$23,850.00+ | 12% |
$96,950.00+ | 22% |
$206,700.00+ | 24% |
$394,600.00+ | 32% |
$501,050.00+ | 35% |
$751,600.00+ | 37% |
Single
TAXABLE INCOME | TAX RATE |
$0.00+ | 10% |
$11,925.00+ | 12% |
$48,475.00+ | 22% |
$103,350.00+ | 24% |
$197,300.00+ | 32% |
$250,525.00+ | 35% |
$626,350.00+ | 37% |
Get a head start on the 2025 tax year with our annual quick reference card.
Capital Gains Rates
Short Term
TAX BRACKET | ASSET HOLDING PERIOD RATE |
10% | 10% |
12% | 12% |
22% | 22% |
24% | 24% |
32% | 32% |
35% | 35% |
37% | 37% |
Long Term
ASSET HOLDING PERIOD RATE | MARRIED FILING JOINTLY* | SINGLE* |
0% | $0 to $96,700 | $0 to $48,350 |
15% | $96,700 to $600,050 | $48,350 to $530,400 |
20% | Over $600,050 | Over $530,400 |
IRA and Retirement Plan Limits for 2025
Maximum IRA Contributions
The amount you can contribute to all of your Traditional and Roth IRAs combined is 100% of your taxable compensation,¹ up to a maximum of:
Under age 50 | $7,000 |
Age 50 or older | $8,000 |
Maximum Retirement Plan Contributions
The maximum amount you can contribute to an employer-sponsored retirement plan; generally is the lesser of 100% of your salary or:
Annual Contribution Limits | Annual Catch-Up Contribution Limits (age 50 or older) | |
401(k) and 403(b) | $23,500 | $7,500 |
SIMPLE-IRA | $16,500 | $3,500 |
Phaseouts
Deductible Traditional IRA Phaseouts
Deductibility depends on MAGI and whether you or your spouse is covered by an employer-sponsored retirement plan. You must figure your deduction and your spouse's deduction separately. The deduction for contributions to traditional IRAs phases out over the following MAGI levels:
Covered by Employer Plan | Not Covered by Employer Plan | |
Single | Single or Married Filing Jointly with a Spouse Who is Also Not Covered | |
MAGI Level | $79,000-$89,000 | No Limit |
Married Filing Jointly | Married Filing Jointly with a Spouse Who is Covered | |
MAGI Level | $126,000-$146,000 | $236,000-$246,000 |
There is no income limit for contributions to a non-deductible traditional IRA.
Roth IRA Eligibility Phaseouts
Eligibility for Roth IRAs is phased out over the following MAGI levels:
Single | Married Filing Jointly | Married Filing Separately | |
MAGI Level | $150,000-$165,000 | $236,000-$246,000 | $0-$10,000 |
Estate and Gift Tax Exemptions for 2025
Estate Tax Exempt Amount: $13.99 Million*
Gift Tax Exempt Amount: $13.99 Million*
Gift Tax Annual Exclusion Amount: $19,000*
Exception for Married Filing Jointly: An employed spouse may contribute to a separate IRA on behalf of a spouse who has little or no income. The amount of the couple’s combined contributions can’t be more than the taxable compensation reported on their joint return. For more information, refer to Spousal IRA sections in IRA Publication 590-A.
Could increase due to inflation adjustment. Source: Internal Revenue Service.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.