Wolters Kluwer has projected federal tax brackets and other inflation-adjusted amounts for the 2025 tax year. After a couple years of stubbornly high inflation, which drove significant increases in the ranges for the tax brackets, standard deduction amounts, Code Sec. 179 election limitations, and many other tax-related amounts, the relatively lower inflation of the past year has resulted in much more modest increases in these amounts for 2025.
Projected inflation-adjusted amounts for the 2025 tax year
Beginning with tax year 2018, most inflation adjustments replaced the Consumer Price Index with the Chained Consumer Price Index, as the Tax Cuts and Jobs Act required. The change in the calculation is highly technical, but the end result is much smaller increases in inflation adjustments.
On September 11, 2024, the Bureau of Labor Statistics released Consumer Price Index amounts for August 2024, enabling the calculation of 2025 amounts.
