U.S. taxpayers will again see higher standard deductions for 2025, allowing them to shield more of their money from taxation on future returns.

It's typical for the IRS to make tax code changes each year to account for inflation. This also helps prevent "tax bracket creep," which could push you into a higher tax bracket,

For tax year 2025, the exemption amount for unmarried individuals will increase to $88,100 ($68,650 for married individuals filing separately) and begins to phase out at $626,350. For married couples filing jointly, the exemption amount increases to $137,000 and begins to phase out at $1,252,700.

U.S. taxpayers will again see higher standard deductions for 2025, allowing them to shield more of their money from taxation on future returns. The Internal Revenue Service detailed the increases in its annual inflation adjustments announced Tuesday.