2025 Federal Tax Brackets and Key Contribution Changes (July 2025)

Download Comprehensive Federal Tax Information for 2025 updated with One Big Beautiful Bill Act

This post updates the Standard Deduction numbers from the latest tax bill called One Big Beautiful Bill Act (OBBBA) signed into law in July, 2025.

Tax Brackets for 2025

Below rates are applied to Ordinary Income which include wages, self-employment income, interest, short-term capital gains and non-qualified dividends (ordinary dividends - qualified dividends).

The following rates are applied to Long-Term Capital Gains and Qualified Dividends. The brackets are determined after adding Ordinary Income to the long-term gains and dividends.

401(k), 403(b) 457 Plan Contribution Limits for 2025

Source: IRS Notice 24-80

If the employer retirement plan allows After-Tax Contributions, then the total contribution including 401(k), Roth 401(k), Employer Match (also Profit-Sharing Contributions) and After-Tax Contributions cannot exceed $70,000 for under age 50. Age 50 and above can contribute an additional $7,500.

IRA, Roth IRA Contribution Limits for 2025

Standard Deductions for 2025 (updated)

Here are the newly updated Standard Deduction amounts with the new tax bill.