The IRS has released adjustments to the estate tax exemption, annual exclusion for gift taxes, and the marginal tax rates for the tax year 2025. Below are some of the important tax adjustments. For more information, see the IRS publication here.
Estate tax credits. For an estate of any decedent dying in calendar year 2025, the basic exclusion amount is $13,990,000.
Annual exclusion. The annual exclusion for gifts increases to $19,000 for calendar year 2025, rising from $18,000 for calendar year 2024.
Marginal rates. For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:35% for incomes over $250,525 ($501,050 for married couples filing jointly).
- 32% for incomes over $197,300 ($394,600 for married couples filing jointly).
- 24% for incomes over $103,350 ($206,700 for married couples filing jointly).
- 22% for incomes over $48,475 ($96,950 for married couples filing jointly).
- 12% for incomes over $11,925 ($23,850 for married couples filing jointly).
- 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).
Standard deductions. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025. For married couples filing jointly, the standard deduction rises to $30,000. For heads of households, the standard deduction will be $22,500 for tax year 2025.
If you have any questions about estate taxes, trusts, or anything else, please reach out to one of the attorneys at Wakefield Law, PC.
This article is meant for informational purposes only. Please recognize that nothing in this article constitutes legal advice. If you have any questions, comments, or seek legal assistance, please contact one of the attorneys at Wakefield Law, P.C.