The One Big Beautiful Bill Act (OBBBA), passed in 2025, permanently extended the lower tax rates and higher standard deductions originally introduced under the Tax Cuts and Jobs Act (TCJA). Without OBBBA, these provisions were set to expire at the end of 2025, reverting to higher pre-2018 tax brackets.
|
Tax Rate |
Single Filers |
Married Filing Jointly |
|
10% |
$0 – $11,925 |
$0 – $23,850 |
|
12% |
$11,926 – $48,475 |
$23,851 – $96,950 |
|
22% |
$48,476 – $103,350 |
$96,951 – $206,700 |
|
24% |
$103,351 – $197,300 |
$206,701 – $394,600 |
|
32% |
$197,301 – $250,525 |
$394,601 – $501,050 |
|
35% |
$250,526 – $626,350 |
$501,051 – $751,600 |
|
37% |
Over $626,350 |
Over $751,600 |
Additional Deduction for Seniors:
|
Filing Status |
Under Age 65 |
Age 65 or Older (Both, if MFJ) |
|
Married Filing Jointly |
$31,500 |
$46,700 ($3,200 + OBBB addition of $12,000) |
|
Single |
$15,750 |
$23,750 ($2,000 + OBBB addition of $6,000) |
The new $6,000 additional tax deduction, introduced under the OBBB tax law, is available to individuals aged 65 and older and applies from 2025 through 2028. The deduction is available whether they itemize or not. However, the deduction phases out entirely for single filers with income above $75,000 and for married couples filing jointly with income above $150,000.
