Every year, the IRS makes inflation adjustments to various items, such as the standard deduction, estate tax unified credit, tax brackets, etc. On October 22, 2024, the IRS released Rev. Proc. 2024-40 with the 2025 inflation adjustments.

Here are some key inflation adjustments for calendar year 2025:

  • The top individual income tax bracket (37%) for married filing joint taxpayers starts at taxable income over $751,600.
  • The standard deduction for married filing joint taxpayers is $30,000.
  • The standard deduction for individual taxpayers is $15,000.
  • The Exit Tax five-year income tax liability test average is $206,000.
  • The Exit Tax mark to market tax lifetime exclusion is $890,000.
  • The Foreign Earned Income Exclusion (FEIE) is $130,000.
  • The Unified Credit against the Estate Tax is $13,990,000.
  • The Annual Gift Tax Exclusion is $19,000.
  • The amount of serious tax delinquent tax debt that triggers the revocation or denial of a United States Passport is $64,000.