The recently enacted One Big Beautiful Bill Act (OBBBA) has made notable changes to the tax landscape by increasing the standard deduction amounts that taxpayers may claim on their 2025 federal income tax returns. These new amounts are higher than the levels the IRS had previously announced, which means that many individuals and families will benefit from a slightly larger automatic deduction, potentially lowering their taxable income without the need to itemize deductions.
Here are the updated 2025 standard deduction amounts:
- Single or Married Filing Separately (MFS): $15,750, which represents an increase of $1,150 compared with the 2024 amount.
- Head of Household: $23,625, reflecting an increase of $1,725 from the prior year.
- Married Filing Jointly (MFJ) or Qualifying Surviving Spouse: $31,500, an increase of $2,300 from 2024 levels.
It is important to note that taxpayers who file under the Married Filing Separately (MFS) status may face additional limitations. In particular, if one spouse chooses to itemize deductions, the other spouse is generally not allowed to take the standard deduction. Furthermore, individuals who can be claimed as a dependent on someone else’s return—such as children or other qualifying relatives—are typically entitled to a reduced standard deduction, which may be significantly lower than the amounts listed above.