ALBANY, N.Y. (NEXSTAR) — The Internal Revenue Service (IRS) and the Social Security Administration released new numbers for 2025. The Social Security benefit change is a cost-of-living adjustment (COLA) based on inflation, and the IRS said their changes target inflation, too. The IRS announced inflation adjustments for the 2025 tax year on October 22, affecting tax brackets for returns due April 15, 2026. The top progressive tax rate of 37% for people earning over $626,350 and couples earning over $751,600 stayed the same from 2024. According to the U.S. Census, New York's median household income was $81,386 in 2022, and per capita income was $47,173. Using these numbers as a very rough example, a couple filing jointly with a taxable income of $81,386—the second tax bracket—could expect to pay the feds $9,289 in tax year 2025. A single filer making $47,173, meanwhile, would owe $5,422. Do you need an ID to vote in New York? Take a look at the tables below to see what you'd pay (in addition to state and local taxes): Taxable income for married filing jointlyand surviving spousesTaxUnder $23,85010%$23,850 to $96,950$2,385 + 12% of the excess over $23,850$96,950 to $206,700$11,157 + 22% over $96,950$206,700 to $394,600$35,302 + 24% over $206,700$394,600 to $501,050$80,398 + 32% over $394,600$501,050 to $751,600$114,462 + 35% over $501,050Over $751,600$202,154.50 + 37% over $751,600 Taxable income forheads of householdsTaxUnder $17,00010%$17,000 to $64,850$1,700 + 12% of the excess over $17,000$64,850 to $103,350$7,442 + 22% over $64,850$103,350 to $197,300$15,912 + 24% over $103,350$197,300 to $250,500$38,460 + 32% over $197,300$250,500 to $626,350$55,484 + 35% over $250,500Over $626,350$187,031.50 + 37% over $626,350 Working Families Party: Don’t vote for us in NY-17 Taxable income forunmarried individualsTaxUnder $11,92510%$11,925 to $48,475$1,192.50 + 12% of the excess over $11,925$48,475 to $103,350$5,578.50 + 22% over $48,475$103,350 to $197,300$17,651 + 24% over $103,350$197,300 to $250,525$40,199 + 32% over $197,300$250,525 to $626,350$57,231 + 35% over $250,525Over $626,350$188,769.75 + 37% over $626,350 Taxable income formarried filing separatelyTaxUnder $11,92510%$11,925 to $48,475$1,192.50 + 12% of the excess over $11,925$48,475 to $103,350$5,578.50 + 22% over $48,475$103,350 to $197,300$17,651 + 24% over $103,350$197,300 to $250,525$40,199 + 32% over $197,300$250,525 to $375,800$57,231 + 35% over $250,525Over $375,800$101,077.25 + 37% over $375,800 Feds charge ex-Indian government employee in New York murder plot The federal income tax formula calculates different rates for different portions of your taxable income. When incomes increase, tax rates rise, kicking in above certain levels—that's the bracket. The "marginal tax rate" is what you'd pay on the next dollar you earn, with the highest rate only applying to the very top portion of earnings. Subtracting either the standard or itemized deductions from your adjusted gross income yields taxable income. The standard deduction rises to $15,000 for single filers and married individuals filing separately, increasing $400 compared to 2024. Married couples filing jointly will see an increase of $800, bringing their deduction to $30,000, while heads of households will get a $22,500 deduction, up by $600. How much are you paying to heat your home this winter? The Earned Income Tax Credit for those with three or more children also rises to $8,046, up from $7,830 in 2024. Take a look at the specifics: No qualifying children1 qualifying child2 qualifying children3+ qualifying childrenEarned income$8,490$12,730$17,880$17,880Maximum credit$649$4,328$7,152$8,046Threshold phaseout(Married filing jointly)$17,730$30,470$30,470$30,470Completed phaseout(Married filing jointly)$26,214$57,554$64,430$68,675Threshold phaseout (Other filers)$10,620$23,350$23,350$23,350Completed phaseout(Other filers)$19,104$50,434$57,310$61,555 Alternative minimum tax exemptions also increase for 2025. Single filers will see an exemption of $88,100, while married couples filing jointly will have $137,000, with phase-outs starting at $626,350 and $1,252,700, respectively. The annual gift exclusion also increases to $19,000, and adoption credits will top out at $17,280 for qualified expenses. The foreign-earned income exclusion grows to $130,000, and the estate tax exclusion likewise increases to $13,990,000. Where does weed money go? Speaking of estate taxes, check out the tax rates for estates below: Taxable income forestate or trustTaxUnder $3,15010%$3,150 to $11,450$315 + 24% of excess over $3,150$11,450 to $15,650$2,307 + 35% over $11,450Over $15,650$3,777 + 37% over $15,650 For 2024, the standard deduction for married couples filing jointly was $29,200, a $1,500 increase from 2023. Single filers saw their allowable deductions rise to $14,600, and heads of households had a deduction of $21,900. The top tax rate remained 37% for single taxpayers with incomes over $609,350 and $731,200 for married couples. Rallies to raise taxes on the rich held at four New York city halls Also unchanged from 2024 to 2025 are the personal exemption at $0 and no limit on itemized deductions. Both came from the Tax Cuts and Jobs Act of 2017 that expires at the end of 2025, unless extended by Congress. Tax brackets would then revert to older levels, with the top rate reaching 39.6%. Social Security and Supplemental Security Income (SSI) benefits will increase by 2.5% in 2025, according to the SSA notification on October 10. Affecting about 68 million Americans, the COLA will boost retirement benefits by about $50 a month starting in January. SSA estimated some example monthly averages: Before 2.5% COLAAfter 2.5% COLAAll retired workers$1,927$1,976Aged couple, both receiving benefits$3,014$3,089Widowed mother with two kids$3,669$3,761Aged widow or widower, alone$1,788$1,832Disabled worker, spouse and one or more children$2,757$2,826All disabled workers$1,542$1,580 Hochul announces plan to cut energy bills The table below has figures from SSA about how many New Yorkers receive benefits, and how much, as of December 2023: Number of peopleAmount of moneyRetirementRetired workers2,825,851$5,514,148,000Spouses115,907$100,540,000Children44,940$40,835,000SurvivorsWidow(er)s and parents192,769$341,543,000Children97,216$114,579,000DisabilityDisabled workers421,997$675,074,000Spouses5,035$2,218,000Children61,137$32,923,000Over 65Men1,325,712$2,804,411,000Women1,695,460$3,003,476,000Total in New York3,764,852$6,821,859,000 The maximum taxable earnings for Social Security will also go up by $7,500, hitting $176,100. The earnings limit for workers under full retirement age will grow to $23,400—an increase of $1,080. For anyone who reaches full retirement age in 2025, the limit will rise from $59,520 to $62,160. You can start getting Social Security benefits as early as 62, but full benefits aren't until 67. Central Hudson has 30 days to answer for Dutchess County explosion The Social Security payroll deduction taxes will stay the same for 2025—7.65% for employees and 15.3% for the self-employed. Should New York end mandated and anonymous reporting of child abuse? The COLA comes from the Consumer Price Index increase for Urban Wage Earners and Clerical Workers from the third quarter of 2023 to the third quarter of 2024. SSA said they plan to mail beneficiaries their new amounts starting in December. COLA notices will also be available online for people with a personal account "My Social Security" account by November 20. 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