An adjustment to income tax brackets could result in a slight increase in your take-home pay.
Have you noticed your take-home pay growing slightly, even though your salary didn't change? If so, it might be due to updated income tax brackets from the Internal Revenue Service.
The IRS recently updated its income tax bracket ranges and the standard deduction for 2025. Depending on your income level, that means your paycheck and tax liability might have changed.
Even if your pay didn't change, you might have dropped into a lower tax bracket in this year, effectively reducing your tax rate. That change could lead to a slight increase in the amount of you money you take home each pay period.
It's normal for the IRS to make tax code changes each year to account for inflation. This helps prevent "tax bracket creep" -- that's when inflation pushes you into a higher tax bracket without a real increase in income.
These new tax changes went live on Jan. 1. Here's everything you need to know about this year's income tax brackets, the standard deduction increase and how tax changes could affect your money.
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How tax code changes affect your paycheck
When the IRS raises federal income tax brackets, you might fall into a different tax bracket than you did the year before -- even if your income has stayed the same.
For example, if you made $48,000 last year, you fell into the 22% tax bracket. But if your income remains at the same level throughout 2025, you'd drop down to the 12% bracket. That means you'll be on the hook for less federal taxes and will have less money withdrawn from your paycheck.
If you make more in 2025 than you did in 2024, the amount your pay has increased will determine where you fall. You could still fall into a lower tax bracket or the same tax bracket. In some cases, your tax bracket and tax rate may increase.
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2025 income tax brackets
Your federal income tax bracket helps determine how much you'll pay in taxes for a given tax year, excluding the standard deduction or any itemized tax deductions.
2025 standard deduction
For 2025, the standard tax deduction for single filers has been raised to $15,000, a $400 increase from 2024. For those married and filing jointly, the standard deduction has been raised to $30,000, up $800 from the previous year.
Source for all charts: IRS (PDF).
Most taxpayers with simple tax returns claim the standard deduction, which reduces their taxable income. If you receive your wages solely from an employer as a W-2 employee, the standard deduction is usually the best way to maximize your tax refund. If you're self-employed or have specific deductions you'd like to claim, you'll itemize your deductions instead.