Inflation-adjusted amounts in the tax code are expected to increase by 2.8% in 2025 from the 2024 numbers.

The U.S. Bureau of Labor Statistics reported that the consumer price index (CPI) increased by 0.2% on a seasonally adjusted basis in August after rising the same level in July—over the last 12 months, the all items index increased 2.5% before seasonal adjustment. You won't just feel the impact of those boosts in your wallet; you'll also see them on your tax forms. Those higher numbers (although slight) push out deduction limitations and will result in upward adjustments to tax brackets and increases to other key thresholds.

According to Bloomberg Tax & Accounting, inflation-adjusted amounts in the tax code will increase by 2.8% from the 2024 numbers. This is about half the increase that taxpayers saw in 2024, and a significant drop from the 7.1% increase in 2023.

How does that translate to dollars? Here's a look at the projected numbers for the tax year 2025, beginning January 1, 2025. These are not the tax rates and other numbers for 2024 (you'll find the official 2024 tax rates here).

Here are what the rates are expected to look like in 2025:

Single Taxpayer 2025 Projected Tax Brackets

Married Taxpayers Filing Jointly 2025 Projected Tax Brackets

Married Taxpayers Filing Separately 2025 Projected Tax Brackets

Heads of Household 2025 Projected Tax Brackets

Trusts and Estates 2025 Projected Tax Brackets

Capital gains rates will not change in 2024, but the brackets for the rates will change. Most taxpayers pay a maximum 15% rate, but a 20% tax rate applies to the extent that taxable income exceeds the thresholds set for the 37% ordinary tax rate. Exceptions also apply for art, collectibles, and section 1250 gain (related to depreciation).

Bloomberg Tax anticipates that the maximum zero rate amounts and maximum 15% rate amounts will break down as follows:

Maximum Capital Gains Rates 2025

Due to the Tax Cuts and Jobs Act, there will be no personal exemption amounts in 2025. Personal exemptions used to decrease your taxable income before you determined the tax due. You........

© Forbes