Tax Brackets 2025 Vs 2025. The irs adjusted 2025 tax brackets for inflation, increasing income thresholds by about 2.8% from 2025, allowing more income to be taxed at lower rates. As your income goes up, the tax rate on the next layer of income is higher.
This is the smallest inflation adjustment in at least three years, following a 5.4% increase in 2025 and a 7.1% boost in. Tax brackets and tax rates.