For 2025, standard deductions increase to $ 15 , 750 $ 1 5 , 7 5 0 for singles/married filing separately, $ 31 , 500 $ 3 1 , 5 0 0 for joint filers, and $ 23 , 625 $ 2 3 , 6 2 5 for heads of household. Key changes include a new $ 6 , 000 $ 6 , 0 0 0 deduction for seniors 65+ (subject to income limits), an estate tax exemption of $ 13.99 $ 1 3 . 9 9 million, and a $ 19 , 000 $ 1 9 , 0 0 0 annual gift exclusion.
From 2025 to 2028, adults age 65+ can claim a temporary bonus deduction of $6,000 if single or $12,000 if married filing jointly. For the 2025 tax year, the total standard plus bonus deduction for those age 65 and older is $21,750 for a single person and $43,500 for a married couple filing a joint return.
For the 2025 tax year, the basic federal standard deduction (the "basic exemption") increased significantly due to inflation and a special boost from the new One, Big, Beautiful Bill (OBBB), now being $15,750 for Single filers, $31,500 for Married Filing Jointly, and $23,625 for Head of Household, with further additional amounts for seniors and the blind. These figures reflect an approximate 7.9% increase from 2024, with the OBBB law extending the doubled standard deduction.
The Income Tax (Exemption) Order 2025 (“2025 Order”) was gazetted on 13 February 2025 and provides exemption from income tax on various payments from specified Labuan persons. The 2025 Order replaces the existing Income Tax (Exemption) (No. 22) Order 2007 (“2007 Order”) with effect from the year of assessment 2023.
For tax year 2025, seniors (65+) get a new $6,000 "bonus" federal tax deduction (or $12,000 for couples) under recent legislation, in addition to existing age-based deductions, phasing out at higher incomes (MAGI $75k single, $150k joint) and requiring filing jointly if married to claim the full amount, while some states also offer senior property tax exemptions, like Colorado's temporary reinstatement for recent movers, requiring separate applications.
A taxpayer may deduct the cost of home internet service pursuant to section 162 if the expense is ordinary and necessary in the taxpayer's trade or business.
CPP contribution rates and amounts
The basic exemption amount for 2025 will remain at $3,500.00. Employee and employer CPP contribution rates for 2025 remain at 5.95%, and the maximum contribution will be $4,034.10 each—up from $3,867.50 in 2024.
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits. What is the Rebate available under section 87A?
What does the IRS allow you to deduct (or “write off”) without receipts?
The 10 Most Overlooked Tax Deductions
In this article
Some of the most common federal tax deductions include:
For the 2025 tax year, the standard deductions are: $15,750 for Single/Married Filing Separately, $31,500 for Married Filing Jointly/Qualifying Surviving Spouse, and $23,625 for Head of Household, with additional amounts available for seniors (65+) and the blind, plus new rules for SALT deductions, per the One Big Beautiful Bill (OBBB).
The new senior tax deduction of up to $6,000 for single filers and $12,000 for joint filers, was created to help cover taxes on Social Security benefits. Taking the new senior deduction helps to reduce your taxable income, which can mean less tax or potentially an even bigger tax refund when you file your return.
One of the most common mistakes that older adults make is assuming they don't have to file taxes. Since most retirees don't have W-2 income, they think they aren't required to file.
Tax changes for 2025, largely driven by the "One Big Beautiful Bill" (OBBBA) Act, introduce significant deductions for seniors, tips, overtime, and auto loan interest, expand the Child Tax Credit, and raise the SALT deduction cap to $40,000, while making several 2017 Tax Cuts and Jobs Act provisions permanent, including the seven tax brackets. Key changes include a $2,200 Child Tax Credit, a $6,000 senior deduction, deductions for qualified tips and overtime, and a permanent standard deduction increase.