Important 2025 Federal Tax Figures and Information to Know
The following chart provides some important federal tax information for 2025, as compared with 2024.
Social Security/ Medicare
Social Security Tax Wage Base
2025-$176,100
2024-$168,600
Medicare Tax Wage Base
2025-No limit
2024-No limit
Employee portion of Social Security
2025-6.2%
2024-6.2%
Employee portion of Medicare
2025-1.45%
2024-1.45%
Individual Retirement Accounts
Roth IRA Individual, up to 100% of earned income
2025-$7,000
2024-$7,000
Traditional IRA Individual, up to 100% of earned Income
2025-$7,000
2024-$7,000
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older
2025-$1,000
2024-$1,000
Qualified Plan Limits
Defined Contribution Plan limit on additions (Sections 415(c)(1)(A))
2025-$70,000
2024-$69,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))
2025-$280,000
2024-$275,000
Maximum compensation used to determine contributions
2025-$350,000
2024-$345,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))
2025-$23,500
2024-$23,000
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older
2025-$7,500
2024-$7,500
Catch-up contributions to 401(k), 403(b) and 457 plans for those age 60, 61, 62 or 63*
2025-$11,250
2024-N/A
SIMPLE deferrals (Section 408(p)(2)(A))
2025-$16,500
2024-$16,000
SIMPLE additional “catch-up” contributions for employees age 50 and older
2025-$3,500
2024-$3,500
Catch-up contributions to SIMPLE plans for those age 60, 61, 62 or 63*
2025-$5,250
2024-N/A
Compensation defining highly compensated employee (Section 414(q)(1)(B))
2025-$160,000
2024-$155,000
Compensation defining key employee (officer) in a top-heavy plan
2025-$230,000
2024-$220,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))
2025-$750
2024-$750
Driving Deductions
Business mileage, per mile
2025-70 cents
2024-67 cents
Charitable mileage, per mile
2025-14 cents
2024-14 cents (the rate is set by statute)
Medical and eligible moving** per mile
2025-21 cents
2024-21 cents
Business Equipment
Maximum Section 179 deduction
2024-$1.25 million
2024-$1.22 million
Phase out for Section 179
2024-$3.13 million
2024-$3.05 million
Business Meals
General deduction for eligible business-related food and beverage expenses
2024-50%
2024-50%
Transportation Fringe Benefit Exclusion
Monthly commuter highway vehicle and transit pass
2025-$325
2024-$315
Monthly qualified parking
2025-$325
2024-$315
Standard Deduction
Married filing jointly
2025-$30,000
2024-$29,200
Single (and married filing separately)
2025-$15,000
2024-$14,600
Heads of Household
2025-$22,500
2024-$21,900
Domestic Employees
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.
2025-$2,800
2024-$2,700
Kiddie Tax
Amount used to reduce the net unearned income reported on a child’s return that’s subject to the Kiddie Tax
2025-$1,350
2024-$1,300
Estate Tax
Federal estate tax exemption
2025-$13.99 million
2024-$13.61 million
Maximum estate tax rate
2025-40%
2024-40%
Annual Gift Exclusion
Amount you can give each recipient
2025-$19,000
2024-$18,000
Alternative Minimum Tax exemption
Married filing jointly
2025-$137,000and begins to phase out at $1,252,700
2024-$133,300 and begins to phase out at $1,218,700
Single
2025-$88,100 and begins to phase out at $626,350
2024-$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
Copyright 2025
This article appeared in Walz Group’s January 6, 2025 issue of The Bottom Line e-newsletter, produced by TopLine Content Marketing. This content is for informational purposes only.
