What are the 2025 federal income tax brackets?

For 2025, the seven federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 37% bracket begins at $626,350. For married filing jointly, it begins at $751,600. These are marginal rates — only the income within each bracket is taxed at that rate.

What is the 2025 federal standard deduction?

The 2025 standard deduction is $15,000 for single filers and married filing separately, $30,000 for married filing jointly, and $22,500 for head of household. These amounts are higher than 2024 due to inflation adjustments.

What are the 2025 long-term capital gains tax rates?

Long-term capital gains (assets held over one year) are taxed at 0%, 15%, or 20% depending on taxable income. For 2025, single filers pay 0% up to $48,350, 15% from $48,350 to $533,400, and 20% above $533,400. High earners may also owe the 3.8% Net Investment Income Tax, bringing the effective maximum rate to 23.8%.

What is California's top income tax rate?

California has a top marginal rate of 12.3% for most high earners, plus an additional 1% Mental Health Services Tax on income over $1,000,000 — making the effective top rate 13.3%, the highest state income tax rate in the United States.

What is the self-employment tax rate for 2025?

The self-employment (SE) tax rate is 15.3% on the first $176,100 of net self-employment income — 12.4% for Social Security and 2.9% for Medicare. Income above $176,100 is subject only to the 2.9% Medicare portion. High earners above $200,000 (single) or $250,000 (married) also owe an additional 0.9% Medicare surtax.

What are the 2025 IRA and 401(k) contribution limits?

For 2025, the 401(k) contribution limit is $23,500 ($31,000 if age 50 or older). The IRA limit is $7,000 ($8,000 if 50 or older). The SEP-IRA limit is the lesser of 25% of compensation or $70,000. HSA limits are $4,300 for self-only coverage and $8,550 for family coverage.

2025 Tax Rates & Brackets | Federal & California

2025 Federal Income Tax Brackets

These are marginal rates — only the income within each bracket is taxed at that rate. Your effective tax rate will always be lower than your top bracket.

Single Filers & Married Filing Separately

Tax Rate	Taxable Income Range	Tax Owed on Bracket
10%	$0 – $11,925	10% of taxable income
12%	$11,926 – $48,475	$1,192.50 + 12% of amount over $11,925
22%	$48,476 – $103,350	$5,578.50 + 22% of amount over $48,475
24%	$103,351 – $197,300	$17,651.50 + 24% of amount over $103,350
32%	$197,301 – $250,525	$40,199.50 + 32% of amount over $197,300
35%	$250,526 – $626,350	$57,231.50 + 35% of amount over $250,525
37%	Over $626,350	$188,769.75 + 37% of amount over $626,350

Married Filing Jointly & Qualifying Surviving Spouse

Tax Rate	Taxable Income Range	Tax Owed on Bracket
10%	$0 – $23,850	10% of taxable income
12%	$23,851 – $96,950	$2,385 + 12% of amount over $23,850
22%	$96,951 – $206,700	$11,157 + 22% of amount over $96,950
24%	$206,701 – $394,600	$35,302 + 24% of amount over $206,700
32%	$394,601 – $501,050	$80,398 + 32% of amount over $394,600
35%	$501,051 – $751,600	$114,462 + 35% of amount over $501,050
37%	Over $751,600	$202,154.50 + 37% of amount over $751,600

2025 Capital Gains Tax Rates

Long-term capital gains (assets held more than one year) are taxed at preferential rates. Short-term gains are taxed as ordinary income at your regular bracket rate.

0%

Zero Capital Gains Rate

Single: Up to $48,350

MFJ: Up to $96,700

HoH: Up to $64,750

15%

Standard Long-Term Rate

Single: $48,350 – $533,400

MFJ: $96,700 – $600,050

HoH: $64,750 – $566,700

20%

High-Earner Rate

Single: Over $533,400

MFJ: Over $600,050

HoH: Over $566,700

Net Investment Income Tax (NIIT): An additional 3.8% tax applies to investment income (capital gains, dividends, rental income) for taxpayers with modified AGI over $200,000 (single) or $250,000 (MFJ). This brings the effective maximum long-term capital gains rate to 23.8% federal — before California's rate on top.

2025 California State Income Tax Brackets

California has ten tax brackets — the highest top rate of any U.S. state. Unlike the federal code, California taxes all capital gains as ordinary income.

Single Filers

CA Rate	Taxable Income Range
1%	$0 – $10,756
2%	$10,757 – $25,499
4%	$25,500 – $40,245
6%	$40,246 – $55,866
8%	$55,867 – $70,606
9.3%	$70,607 – $360,659
10.3%	$360,660 – $432,787
11.3%	$432,788 – $721,314
12.3%	Over $721,314
13.3%	Over $1,000,000 Mental Health Services Tax +1%

Other Key 2025 Tax Rates

Self-Employment Tax

SE tax rate (up to $176,100) 15.3%
Social Security portion 12.4%
Medicare portion 2.9%
SS wage base (2025) $176,100
Additional Medicare surtax (income >$200K single / $250K MFJ) +0.9%

Corporate & Entity Tax Rates

Federal C-Corp flat rate 21%
California C-Corp rate 8.84%
California S-Corp rate 1.5%
CA LLC annual franchise tax (minimum) $800
QBI deduction (pass-through entities) Up to 20%

Payroll / FICA Taxes (Employers)

Social Security — employer share 6.2%
Social Security — employee share 6.2%
Medicare — employer + employee each 1.45%
SS wage base (2025) $176,100
California SDI (employee) 1.1%

2025 Retirement Contribution Limits

401(k) / 403(b) / 457 limit $23,500
401(k) catch-up (age 50+) $31,000
Traditional / Roth IRA $7,000
IRA catch-up (age 50+) $8,000
SEP-IRA (max) $70,000
HSA — self-only coverage $4,300
HSA — family coverage $8,550

Tax Rates FAQ

Your marginal rate is the rate that applies to your last dollar of income — your "top bracket." Your effective rate is the total tax you pay divided by your total income. Because the U.S. has a progressive system, you always pay the lower rates on income in lower brackets. A 37% top bracket does not mean you pay 37% on all income.

California taxes all capital gains — short-term and long-term — as ordinary income at regular CA income tax rates. There is no preferential long-term rate in California. A high-income California resident selling appreciated assets could face a combined rate of up to 23.8% federal + 13.3% CA = 37.1% on capital gains.

The self-employment tax is 15.3% on the first $176,100 of net self-employment earnings (12.4% Social Security + 2.9% Medicare). Income above $176,100 is only subject to the 2.9% Medicare portion. You can deduct half of the SE tax paid as an adjustment to income. High earners above $200,000 (single) also owe an additional 0.9% Medicare surtax.

The Qualified Business Income (QBI) deduction allows eligible self-employed individuals and owners of pass-through entities (S-corps, partnerships, sole proprietors) to deduct up to 20% of qualified business income from taxable income. Income limits and W-2 wage tests apply at higher income levels. This deduction is currently set to expire after 2025 unless extended by Congress — planning now is essential.

The 2025 401(k) limit is $23,500 ($31,000 if age 50+). The IRA limit is $7,000 ($8,000 if 50+). For self-employed individuals, a SEP-IRA allows contributions up to 25% of compensation or $70,000 — whichever is less. These contributions directly reduce your taxable income and represent one of the most powerful legal tax reduction strategies available.

Knowing the rates is step one — but the real value comes from strategies that shift income across brackets or eliminate it entirely. Common moves include maximizing retirement contributions, electing S-Corp status at the right income level, timing capital gains sales, taking the PTET deduction, leveraging cost segregation studies, and strategic charitable giving. Your Tax Team builds customized tax plans around your specific situation — not a one-size-fits-all approach.

Knowing the Rates Is Step One. Lowering Them Is What We Do.

Your Tax Team builds proactive strategies to reduce your effective rate — legally, permanently, and tailored to your income and entity structure.

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2025 Tax Rates & Brackets: Federal & California