The following chart provides some important federal tax information for 2025, as compared with 2024.
Social Security/Medicare |
2025 |
2024 |
| Social Security Tax Wage Base | $176,100 | $168,600 |
| Medicare Tax Wage Base | No limit | No limit |
| Employee portion of Social Security | 6.2% | 6.2% |
| Employee portion of Medicare | 1.45% | 1.45% |
Individual Retirement Accountants |
2025 |
2024 |
| Roth IRA Individual, up to 100% of earned income | $7,000 | $7,000 |
| Traditional IRA Individual, up to 100% of earned Income | $7,000 | $7,000 |
| Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older |
$1,000 | $1,000 |
Qualified Plan Limits |
2025 |
2024 |
| Defined Contribution Plan limit on additions on (Sections 415(c)(1)(A)) | $70,000 | $69,000 |
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) | $280,000 | $275,000 |
| Maximum compensation used to determine contributions | $350,000 | $345,000 |
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) |
$23,500 | $23,000 |
| 401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older |
$7,500 | $7,500 |
| Catch-up contributions to 401(k), 403(b) and 457 plans for those age 60, 61, 62 or 63* | $11,250 | N/A |
| SIMPLE deferrals (Section 408(p)(2)(A)) | $16,500 | $16,000 |
| SIMPLE additional “catch-up” contributions for employees age 50 & older | $3,500 | $3,500 |
| Catch-up contributions to SIMPLE plans for those age 60, 61, 62 or 63* | $5,250 | N/A |
| Compensation defining highly compensated employee (Section 414(q) (1)(B)) |
$160,000 | $155,000 |
| Compensation defining key employee (officer) in a top-heavy plan | $230,000 | $220,000 |
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) |
$750 | $750 |
Driving Deductions |
2025 |
2024 |
| Business mileage, per mile | 70 cents | 67 cents |
| Charitable mileage, per mile | 14 cents | 14 cents (the rate is set by statute) |
| Medical and eligible moving** per mile | 21 cents | 21 cents |
Business Equipment |
2025 |
2024 |
| Maximum Section 179 deduction | $1.25 million | $1.22 million |
| Phase out for Section 179 | $3.13 million | $3.05 million |
Business Meals |
2025 |
2024 |
General deduction for eligible business-related food and beverage expenses |
50% |
50% |
Transportation Fringe Benefit Exclusion |
2025 |
2024 |
| Monthly commuter highway vehicle and transit pass | $325 | $315 |
| Monthly qualified parking | $325 | $315 |
Standard Deduction |
2025 |
2024 |
| Married filing jointly | $30,000 | $29,200 |
| Single (and married filing separately) | $15,000 | $14,600 |
| Heads of Household | $22,500 | $21,900 |
Domestic Employees |
2025 |
2024 |
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. |
$2,800 | $2,700 |
Kiddie Tax |
2025 |
2024 |
Amount used to reduce the net unearned income reported on a child's return that's subject to the Kiddie Tax |
$1,350 |
$1,300 |
Estate Tax |
2025 |
2024 |
| Federal estate tax exemption | $13.99 million | $13.61 million |
| Maximum estate tax rate | 40% | 40% |
Annual Gift Exclusion |
2025 |
2024 |
| Amount you can give each recipient | $19,000 | $18,000 |
Alternative Minimum Tax Exemption |
2025 |
2024 |
|
Married filing jointly |
$137,000 and begins to phase out at $1,252,700 |
$133,300 and begins to phase out at $1,218,700 |
|
Single |
$88,100 and begins to phase out at $626,350 |
$85,700 and begins to phase out at $609,350 |
* A change that takes effect in 2025 under SECURE 2.0 | ** Only available for active-duty members of the military