2025 Standard Deduction Changes Under New Trump Tax Bill
The so-called 'big beautiful bill' has introduced a new standard deduction amount for 2025. How much is it?
In light of the recent GOP tax bill being signed into law by President Trump, many may wonder: What is the new standard deduction?
The reconciliation bill, dubbed the "big beautiful bill" (BBB), includes a bunch of tax cuts and provisions that will impact U.S. taxpayers for years to come.
One of these provisions has to do with the standard deduction you'll use for tax returns you'll file in early 2026. While the IRS increased the standard deduction last fall, the new amounts for 2025 have been increased again under the BBB.
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This is in addition to the usual annual adjustment for inflation, which means the newly raised standard deduction will also increase each year.
Plus, the Trump/GOP tax bill introduces a new temporary bonus deduction for those 65 and older. Interested? Read on.
In the news: The 2026 Standard Deduction is Here.
What is the new standard deduction amount for 2025?
The standard deduction amounts have increased under the 2025 Trump tax bill between $1,150 and $2,300 from prior-year numbers.
Below are the 2025 amounts:
Married Filing Joint and Surviving Spouses | $31,500 | Increase of $2,300 from the prior tax year |
Single and Married Filing Separately | $15,750 | Increase of $1,150 from the prior tax year |
Heads of Household | $23,625 | Increase of $1,725 from the prior tax year |
It's important to note that the above chart reflects the IRS's change to the standard deduction in the fall, plus the BBB increase.
So, for example, while the IRS initially increased the 2025 single filer deduction from $14,600 to $15,000 as part of its normal inflation adjustment, the BBB has now further increased that amount to $15,750.
2025 standard deduction over age 65
As Kiplinger has reported, there's an existing extra standard deduction for taxpayers 65 and older and those who are blind. For 2025, that additional amount is $1,600 ($2,000 if unmarried and not a surviving spouse).
Those eligible can add the extra standard deduction to the regular amount for their filing status. So, a single taxpayer 65 or older (or who is blind) can claim a total standard deduction of $17,750 on their 2025 federal tax return.
But the Trump tax overhaul introduces a new bonus standard deduction of $6,000 for those age 65 and older. This may be added to the additional standard deduction for 2025; however, the "bonus" amount is temporary and phases out for incomes above certain thresholds.
For more information on how the additional deduction works, see: The Extra Standard Deduction for People 65 or Older.
What about dependents?
Your standard deduction amount may differ if you can be claimed as a dependent on another taxpayer’s federal tax return.
The 2025 standard deduction for dependents is limited to either $1,350 or the sum of $450 and the dependent’s earned income, whichever is greater.
Note: The standard deduction for dependents cannot exceed the regular standard deduction for your filing status, even if your earned income is higher than the basic standard deduction amount.
2025 Trump tax bill standard deduction changes vs. the TCJA
It’s important to keep in mind that the TCJA, also known as the “Trump tax cuts,” almost doubled the standard deduction about seven years ago. Before the TCJA, the 2018 amounts for single filers and married filing jointly couples jointly were $6,500 and $12,000, respectively.
After the TCJA was enacted, the base standard deduction amounts jumped to $13,000 (single filers) and $24,000 (married filing jointly). As mentioned, the standard deduction is adjusted for inflation each year, and the BBB increases those amounts further.
The new "Trump tax bill," as the BBB is also called, raises each of the 2025 standard deduction amounts from anywhere between $750 to $1,500. The bill also introduced a $6,000 temporary bonus deduction for qualifying adults over 65 ($12,000 if both spouses qualify).
This brings the highest possible standard deduction amount to $46,700 for married filing joint couples who are both over 65 and qualify for the bonus deduction.
For more information on how to calculate your total standard deduction, see: The Extra Deduction for Those Over 65 Changes Again.
What about BBB 2025 tax brackets?
For 2025 (returns you'll usually file in early 2026), the top tax rate of 37% applies to single filers with incomes exceeding $626,350, up from $609,350 in the prior tax year.
While the Trump tax bill didn't raise tax bracket limits, it made the existing thresholds permanent.
This upward revision of income thresholds across all brackets means some taxpayers may find themselves in a lower tax bracket for the same income level compared to the previous year.
For more information, see Kiplinger's report 2025 Income Tax Brackets Are Set: What to Know Now.
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