Individual Tax Brackets in 2025: What Texans Need to Know
Disclaimer: This blog post is not legal advice and is for educational purposes only. This blog post does not create an attorney-client relationship. If you would like to speak to an attorney about a legal matter, please reach out to us today!
The IRS has released updated tax brackets for 2025, reflecting inflation adjustments designed to keep pace with the rising cost of living. For Texans, this means expanded income thresholds in each bracket, translating to potential savings for individuals and families.
What’s New in the Tax Brackets?
For married couples filing jointly, the brackets for 2025 include:
10% for income up to $23,200
12% for income between $23,200 and $93,600
22% for income between $93,600 and $190,750
37% for income exceeding $764,200.
Relevance for Texans
With no state income tax, Texans already enjoy a financial advantage. These federal adjustments further reduce taxable income, benefiting middle-income earners, professionals, and small business owners.
Example: Relief for a Growing Family
A married couple in Longview earning $100,000 annually will see more of their income taxed at the lower 12% rate rather than the 22% bracket. This adjustment could save them hundreds of dollars, particularly beneficial for families expanding in size or dealing with higher living costs.
Trump’s Influence on Tax Policy
Trump’s victory in the 2024 presidential election may signal additional tax cuts. While lower rates might benefit Texans further, possible offsets, like reduced deductions or increased IRS audits, could add complexity.
Steps for Texans
Reviewing paycheck withholdings and adjusting estimated tax payments are essential first steps. Texans should also evaluate eligibility for deductions and credits under potential changes to maximize their savings.
Take control of your tax planning today. Contact Huenefeld Law, PLLC to analyze how these tax bracket adjustments impact your bottom line. From tailored tax strategies to expert guidance, we’re here to help you optimize your finances.
