Capital Gains Tax Fight Heats Up, Coastal Owners Rattled
Inflation Adjustments and Their Impact on Tax Brackets Inflation often stirs anxiety among investors. However, inflation adjustments to tax brackets offer some relief by aligning tax burdens more closely with actual income. In 2025, the IRS has revised the income thresholds. These adjustments apply to the seven permanent federal tax rates, which range from 10% to the top marginal rate of 37%. The 37% rate now applies to single filers earning over $626,350. It applies to married couples with incomes over $751,600. The standard deductions have been established at $15,750 for singles and $31,500 for married couples, acting as a buffer against inflationary impacts on income. These adjustments are essential in preventing "bracket creep." This occurs when inflation alone pushes taxpayers into higher tax brackets without a real increase in income. By incorporating annual inflation indexing, tax burdens remain fair. They become reflective of real income changes. This process mitigat...