7 Min read adminSeptember 15th, 2025

What is the Trump Tax Brackets 2025? Everything You Need to Know

Every year, as a routine activity, the IRS makes inflation-related adjustments to U.S. tax provisions, including tax brackets, deductions, benefits, and other changes. In a landmark event, US President Trump signed the One Big Beautiful Bill Act (OBBA) on July 4, reducing nearly $4.5 trillion in tax cuts. This became the so-called Trump tax bracket, which made the 2017 Tax Cuts and Jobs Act (TCJA) tax brackets, previously ranging from 10% to 39.6%, a permanent feature with a new trump tax brackets of 10% to 37%.

The TCJA was set to expire after 2025, but with the passage of the OBBA, Trump has made the tax bracket a permanent feature. He also introduced new deductions, overtime pay, and seniority benefits. According to the Congressional Budget Office, the Trump tax brackets and substantial deductions offered will result in a significant federal deficit by 2034. These changes are just starting to unfold, and we will all see how the benefits and deductions affect citizens and businesses across the country.

In this blog, we will learn about the new Trump tax brackets, what changes are taking place, and everything you should know regarding them. Let us get into the topic and know more.

Significant Changes to New Trump Tax Bracket, Deductions & Credits

The new tax brackets will be as follows: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These trump tax brackets have now become a permanent thing.
The standard deductions have been increased for tax filers, while a bonus deduction will also be available for older adults.
The child tax credit has been increased to $2,200, but only for qualifying children.
The alternative tax bracket (ATB) deduction cap is increased temporarily and will be phased out gradually.
Similarly, the SALT deduction cap is increased temporarily, but will be phased out gradually using an income-based method.
Americans earning between $30,000 and $80,000 per year will receive a benefit of up to 15% (Source: The White House, US Government).
Overtime and tipped workers can save up to $2000 per year, with no taxes within this limit.
Working Americans and families will see a higher take-home pay benefit of up to $10,000 per year

Table: 2025 Tax Brackets for Singles, Couples/Joint, and Head of Household Filers

Tax Bracket Rate %	Single Tax Filers	Couple/Married/Joint Tax Filers	Head of Household Tax Filers
10%	$0 to $11,925	$0 to $23,850	$0 to $17,000
12%	$11,925 to $48,475	$23,850 to $96,950	$17,000 to $64,850
22%	$48,475 to $103,350	$96,950 to $206,700	$64,850 to $103,350
24%	$103,350 to $197,300	$206,700 to $394,600	$103,850 to $197,300
32%	$197,300 to $250,525	$394600 to $501,050	$197,300 to 250,500
35%	$250,525 to $626,350	$501,050 to $751,600	$250,500 to $626,350
37%	$626,350 and more	$751,600 and more	$626,350 and more

What are the Standard Deductions Available in the New Trump Tax Bracket?

The standard deduction will benefit all kinds of tax filers. For single filers, the standard deduction will increase by $400, and for couples/married/joint filers, it will increase by $800. However, seniors above the age of 65 will receive an extra deduction of $2,000 (for singles) and $1,600 (for joint filers).

Please note that the personal deduction for 2025 will remain $0 irrespective of filers and segments.

Tax Filing Segment	Standard Deduction Amount	Bonus Deduction Amount	Total Deductions (Standard + Bonus)
For single filers	$15,000	$750	$15,750
For Joint/Couple filers	$30,000	$1500	$31,500
Head of Household filer	$22,000	$1625	$23,625

What are the Exemptions Available Under the Alternative Minimum Tax (AMT)?

This AMT tax is generally paid by high-net-worth individuals. This tax was introduced in the 1960s. Apart from filing the regular income tax, these individuals also need to file a separate AMT. Here are the AMT exemptions available for them in 2025:

Tax Filing Segment	Exemption Amount 2025
Unmarried Individuals	$88,100
Married Individuals (Those filing jointly)	$137,000

At a Glance: Other Benefits & Tax Cut Impact on Tax Filers for 2025

Higher deductions and financial relief for seniors
Interest deduction on loans for those purchasing American-made cars
Higher cash in hand for individuals and families under the new trump tax bracket as compared to the pre-Trump tax brackets.
Makes good changes and enhances the 529 savings account to make education for students more affordable and easier for parents.
Small businesses can instantly deduct up to $2.5 million in equipment and property expenses and costs.
100% support for a new factory, equipment, and machinery set up in the USA
$100 billion plus support for distressed, rural, and underprivileged communities

Source: The White House, US Government

Final Words

For Americans, the new Trump tax bracket is a landmark event, as it makes the seven tax brackets, which range from 10% to 37%, permanent. The passage of the One Beautiful Big Bill Act (OBBBA) provides significant deductions for all tax filers, enabling them to carry a higher cash balance. In contrast, each aspect of the deduction is made at a higher value than the pre-Trump tax bracket values. This is a positive sign for America and its citizens in the long run, as it boosts consumption and fuels the broader economy. Having said this, we have briefly summarized the latest trump tax bracket and OBBBA provision for the 2025 year log. Are you a firm looking to incorporate the new tax provisions into a tax software? Contact us for cloud tax hosting services.