The following is a high-level summary of some key US federal individual tax rates and limits for 2024 and 2025 as currently in effect. This compilation is intended to serve as a reference guide for companies with globally mobile workforces as they prepare for individual tax filings relating to 2024, as well as planning for 2025.
| Social Security and Medicare taxes (FICA and SE tax) | ||
| 2024 | 2025 | |
| Social Security Wage Base | $168,600 | $176,100 |
| SS Maximum – 6.2% | $10,453.20 | $10,918.20 |
| Medicare – 1.45% * | No ceiling | No ceiling |
*See below for ‘Additional Medicare tax’ that applies to wages and other compensation in excess of an applicable threshold amount.
| Additional Medicare Tax: a 0.9% tax is imposed on individual wages and other compensation in excess of the following threshold amounts: | ||
| 2024 | 2025 | |
| Single | $200,000 | $200,000 |
| MFJ | $250,000 | $250,000 |
| MFS | $125,000 | $125,000 |
| HOH | $200,000 | $200,000 |
| Tax on net investment income: a 3.8% tax is imposed on the lesser of net investment income or the excess of modified adjusted gross income over the following threshold amounts: | ||
| 2024 | 2025 | |
| Single | $200,000 | $200,000 |
| MFJ | $250,000 | $250,000 |
| MFS | $125,000 | $125,000 |
| HOH | $200,000 | $200,000 |
| Supplemental withholding flat rates | ||
| 2024 | 2025 | |
| Supplemental wages up to $1,000,000 * | 22% | 22% |
| Supplemental wages greater than $1,000,000 | 37% | 37% |
* In lieu of regular tax withholding rates and available only if certain requirements are met.
| Personal exemptions | ||
| 2024 | 2025 | |
| Personal exemption * | 0 | 0 |
* The personal exemption is temporarily eliminated for tax years 2018-2025
| Itemized deductions | ||
| 2024 | 2025 | |
| Deduction for state and local taxes * not accrued in a trade or business or on property held for the production of income | Up to $10,000 ($5,000 MFS) | Up to $10,000 ($5,000 MFS) |
| AGI threshold that unreimbursed medical and dental expense deductions must reach before a deduction is permitted for all taxpayers | 7.5% | 7.5% |
| Deduction for mortgage interest for qualified indebtedness up to certain amounts ** | $1m ($750,000 for “new debt”) | $1m ($750,000 for “new debt”) |
* This limitation is scheduled to expire at the end of 2025.
** The deductibility of interest on home equity debt is suspended for 2018-2025 unless the home equity loan proceeds are used for acquiring, constructing, or substantially improving any qualified residence and are secured by such residence. A qualified residence is defined as the principal residence and one other property used as a residence.
Note: The 2017 TCJA made various other changes to itemized deductions. For example, the overall reduction in itemized deductions by 3% of AGI in excess of certain amounts was repealed for tax years 2018-2025. Other changes were made to items including, for example, state and local taxes, employee business expenses, tax preparation fees, other 2% miscellaneous items, alimony, and moving expenses.
| Standard deduction | ||
| 2024 | 2025 | |
| Single | $14,600 | $15,000 |
| MFJ | $29,200 | $30,000 |
| MFS | $14,600 | $15,000 |
| HOH | $21,900 | $22,500 |
| Charitable contribution deductions | ||
| 2024 | 2025 | |
| Limit on contributions to a certain % of taxpayer’s AGI for those who itemize | 60% | 60% |
| Section 911 | ||
| 2024 | 2025 | |
| Annual exclusion | $126,500 | $130,000 |
| Base housing amount | $20,240 | $20,800 |
| Standard qualified housing expense limit * | $37,950 | $39,000 |
*Adjustments to this limitation are provided for certain countries with high housing costs. See Rev. Proc. 2023-34 for the 2024 foreign earned income exclusion amount. See Rev. Proc. 2024-40 for the 2025 amount.
| Expatriation – Sections 877/877A | ||
| 2024 | 2025 | |
| 5 year average annual net income tax threshold | $201,000 | $206,000 |
| Amount of net gain from mark-to-market tax regime includible in gross income of covered expatriate is reduced by up to: | $866,000 | $890,000 |
| Alternative Minimum Tax (AMT) | ||
| AMT exemption amounts (subject to phase-out described in the table below) | ||
| 2024 | 2025 | |
| Single | $85,700 | $88,100 |
| MFJ | $133,300 | $137,000 |
| MFS | $66,650 | $68,500 |
| HOH | $85,700 | $88,100 |
| Phase-out of AMT exemption amount begins when the alternative minimum taxable income exceeds the following amounts: | ||
| Single | $609,350 | $626,350 |
| MFJ | $1,218,700 | $1,252,700 |
| MFS | $609,350 | $626,350 |
| HOH | $609,350 | $626,350 |
| Capital gains tax rate | ||
| 2024 | 2025 | |
| Long Term * | 15% / 20% | 15% / 20% |
| Lower-income taxpayers | 0% | 0% |
| Short term | Ordinary rates | Ordinary rates |
* For 2024, the 20% long-term capital gains tax rate applies when the lesser of adjusted net capital gain or taxable income is at least $583,750 (MFJ), $518,900 (single), $291,850 (MFS), and $551,350 (HOH). For 2025, these amounts are $600,050 (MFJ), $533,400 (single), $300,000 (MFS), and $566,700 (HOH).
| Qualified dividends tax rate | ||
| 2024 | 2025 | |
| Qualified dividend rate * | 15% / 20% | 15% / 20% |
| Lower-income taxpayers | 0% | 0% |
| Nonqualified dividends | Ordinary rates | Ordinary rates |
* Qualified dividend income generally is taxed at the same rates and thresholds that apply to net long- term capital gains (see above).
| Child Tax Credit | ||
| 2024 | 2025 | |
| Child tax credit (per child) * | $2,000; $1,700 refundable | $2,000; $1,700 refundable |
| $500 refundable credit for dependents other than qualifying children without social security numbers | $500 refundable credit for dependents other than qualifying children without social security numbers | |
* The qualifying child (who has not attained the age of 17 at the end of the tax year in question) must have a social security number by the due date of the taxpayer’s return in order to claim the credit, except for the $500 nonrefundable credit, for which the dependent must have an individual taxpayer identification number (ITIN). The credit is subject to phase-outs for individuals with income over certain threshold amounts. Phase-out limitations apply when taxpayers have modified adjusted gross income in excess of $400,000 for married filing jointly, and $200,000 for all others.
| Gift Tax Limits * | ||
| 2024 | 2025 | |
| Annual exclusion from total amount of taxable gifts | $18,000 | $19,000 |
| Annual exclusion for gifts to non-US citizen spouses | $185,000 | $190,000 |
*This amount is per donor and per done and refers to gifts that are not future interests in property,
| Defined contribution plan limit (including 401(k) plans) | ||
| 2024 | 2025 | |
| Maximum employee elective deferral | $23,000 | $23,500 |
| Catch-up contribution limits (age 50 or older) * | $7,500 | $7,500 |
* A higher catch-up contribution limit of $11,250 is available to individuals who will turn 60 to 63 in 2025.
| 2024: Married filing jointly and surviving spouses | |||
| Over | Not over | Tax | Plus % on excess |
| 0 | 23,200 | 0 | 10% |
| 23,200 | 94,300 | 2,320 | 12% |
| 94,300 | 201,050 | 10,852 | 22% |
| 201,050 | 383,900 | 34,337 | 24% |
| 383,900 | 487,450 | 78,221 | 32% |
| 487,450 | 731,200 | 111,357 | 35% |
| 731,200 | 196,670 | 37% | |
| 2025: Married filing jointly and surviving spouses | |||
| Over | Not over | Tax | Plus % on excess |
| 0 | 23,850 | 0 | 10% |
| 23,850 | 96,950 | 2,385 | 12% |
| 96,950 | 206,700 | 11,157 | 22% |
| 206,700 | 394,600 | 35,302 | 24% |
| 394,600 | 501,050 | 80,398 | 32% |
| 501,050 | 751,600 | 114,462 | 35% |
| 751,600 | 202,154 | 37% | |
| 2024: Single | |||
| Over | Not over | Tax | Plus % on excess |
| 0 | 11,600 | 0 | 10% |
| 11,600 | 47,150 | 1,160 | 12% |
| 47,150 | 100,525 | 5,426 | 22% |
| 100,525 | 191,950 | 17,169 | 24% |
| 191,950 | 243,725 | 39,111 | 32% |
| 243,725 | 609,350 | 55,679 | 35% |
| 609,350 | 183,648 | 37% | |
| 2025: Single | |||
| Over | Not over | Tax | Plus % on excess |
| 0 | 11,925 | 0 | 10% |
| 11,925 | 48,475 | 1,193 | 12% |
| 48,475 | 103,350 | 5,579 | 22% |
| 103,350 | 197,300 | 17,651 | 24% |
| 197,300 | 250,525 | 40,199 | 32% |
| 250,525 | 626,350 | 57,231 | 35% |
| 626,350 | 188,770 | 37% | |
| 2024: Married filing separately | |||
| Over | Not over | Tax | Plus % on excess |
| 0 | 11,600 | 0 | 10% |
| 11,600 | 47,150 | 1,160 | 12% |
| 47,150 | 100,525 | 5,426 | 22% |
| 100,525 | 191,950 | 17,169 | 24% |
| 191,950 | 243,725 | 39,111 | 32% |
| 243,725 | 365,600 | 55,679 | 35% |
| 365,600 | 98,335 | 37% | |
| 2025: Married filing separately | |||
| Over | Not over | Tax | Plus % on excess |
| 0 | 11,925 | 0 | 10% |
| 11,925 | 48,475 | 1,193 | 12% |
| 48,475 | 103,350 | 5,579 | 22% |
| 103,350 | 197,300 | 17,651 | 24% |
| 197,300 | 250,525 | 40,199 | 32% |
| 250,525 | 375,800 | 57,231 | 35% |
| 375,800 | 101,077 | 37% | |
| 2024: Head of household | |||
| Over | Not over | Tax | Plus % on excess |
| 0 | 16,550 | 0 | 10% |
| 16,550 | 63,100 | 1,655 | 12% |
| 63,100 | 100,500 | 7,241 | 22% |
| 100,500 | 191,950 | 15,469 | 24% |
| 191,950 | 243,700 | 37,417 | 32% |
| 243,700 | 609,350 | 53,977 | 35% |
| 609,350 | 181,955 | 37% | |
| 2025: Head of household | |||
| Over | Not over | Tax | Plus % on excess |
| 0 | 17,000 | 0 | 10% |
| 17,000 | 64,850 | 1,700 | 12% |
| 64,850 | 103,350 | 7,442 | 22% |
| 103,350 | 197,300 | 15,912 | 24% |
| 197,300 | 250,500 | 38,460 | 32% |
| 250,500 | 626,350 | 55,484 | 35% |
| 626,350 | 187,032 | 37% | |
Note: 2024 rate tables are provided in Rev. Proc. 2023-34; 2025 rate tables are provided in Rev. Proc. 2024-40.
Companies with globally and domestically mobile populations face unique risks and challenges within our regulatory environment. We are available to assist with any questions about your US citizen employees working abroad, non-US employees working in the United States, as well as your domestically mobile population.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
David Austin
Partner
Mike Branca
Partner
Julie Baron
Partner
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