Tax Rates for 2025

Financial Planning Tax Strategies
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New rates were reported in the Wall Street Journal.

Standard deductions moves from $14.6k for singles to $15k and from $29.2k to $30k for married couple.

Capital gains 0% rate increases to $48.35k for singles and $96.7k for married couples. The rate remains 15% for most people above those numbers but the NIIT applies over $200k singles or $250k married.

Unified estate tax exemption increases from $13.61MM to $13.99MM. Annual gift tax exemption increases from $18k/person per year to $19k.

Net investment income tax. No information if it changes in 2025. In the case of an individual, the NIIT is 3.8% of the excess net investment income over $200k for singles or $250k for married.

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NIIT hasn’t ever been indexed to inflation, so there’s no reason for it to change.

AJ

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Thanks. Any changes in IRA contribution limits?

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Not yet. Last year’s announcement of retirement plan limit changes was on Nov 1.

Here’s the link to the announcement of the other inflation adjustments on the IRS website IRS releases tax inflation adjustments for tax year 2025 | Internal Revenue Service
The announcement includes a link to the actual Revenue Procedure if you want the nitty gritty details.

AJ

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No change to the $7k IRA contribution limit for 2025. 401(k) contribution increases to $23,500 Catch up contributions for IRAs and employer plans unchanged.

401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000 | Internal Revenue Service

AJ

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