Major 2025 Tax and Retirement Changes: What You Need to Know

The IRS has announced its annual tax bracket adjustments for 2025, which include higher standard deductions: $15,000 for single filers, $30,000 for joint filers, and $22,500 for heads of households. These adjustments, aimed at accounting for inflation, also revise income thresholds for tax brackets, with the top rate of 37% applying to incomes over $626,350 for single taxpayers. Despite these increases, they are smaller compared to previous years due to moderating inflation. Additionally, the Social Security Administration announced a 2.5% cost-of-living adjustment for benefits in 2025.