Key Individual Tax Changes
Individual tax rates. Makes permanent the TCJA’ s individual tax rates:
10 %
FOR INCOMES UP TO $ 11,925
Standard deduction. Makes permanent the near doubling of the standard deduction. For 2025, the standard deduction increases to $ 15,750 for single filers, $ 23,625 for heads of households and $ 31,500 for joint filers, with annual inflation adjustments going forward.
12 %
22 %
24 %
32 %
35 %
FOR INCOMES BETWEEN $ 11,925- $ 48,475
FOR INCOMES BETWEEN $ 48,475- $ 103,350
FOR INCOMES BETWEEN $ 103,350- $ 197,300
FOR INCOMES BETWEEN $ 197,300- $ 250,525
FOR INCOMES BETWEEN $ 250,525- $ 626,350
Personal exemptions. Makes permanent the elimination of personal exemptions.
Child Tax Credit( CTC). Permanently increases the CTC to $ 2,200, with annual inflation adjustments going forward.
State and local tax( SALT) deduction. Temporarily increases the limit on the deduction for the SALT cap to $ 40,000, with a 1 % increase each year through 2029, after which the $ 10,000 limit will return.
Home mortgage interest deduction. Permanently reduces the mortgage debt limit for the home mortgage interest deduction to $ 750,000($ 375,000 for separate filers) but includes mortgage insurance premiums as deductible interest.
Home equity debt deduction. Permanently eliminates the deduction for interest on home equity debt.
Casualty loss deduction. Permanently limits the personal casualty deduction for losses resulting from federally declared disasters and certain state declared disasters.
37 %
FOR INCOMES ABOVE $ 626,350
Miscellaneous itemized deductions. Permanently eliminates miscellaneous itemized deductions except for unreimbursed educator expenses.
Except where noted, these changes are effective for tax years beginning in 2025. JULY 2025 | 03