TMA Accounting
Every year, the amounts allowed for various federal tax benefits are subject to change based on inflation adjustments and legislation. This chart provides some tax figures for 2025, compared with 2024, including the estate tax exemption, Social Security wage base, qualified retirement plan and IRA contribution limits, driving deductions and more.
| Social Security/ Medicare | 2025 | 2024 |
| Social Security Tax Wage Base | $176,100 | $168,600 |
| Medicare Tax Wage Base | No limit | No limit |
| Employee portion of Social Security | 6.2% | 6.2% |
| Employee portion of Medicare | 1.45% | 1.45% |
| Individual Retirement Accounts | 2025 | 2024 |
| Roth IRA Individual, up to 100% of earned income | $7,000 | $7,000 |
| Traditional IRA Individual, up to 100% of earned Income | $7,000 | $7,000 |
| Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older | $1,000 | $1,000 |
| Qualified Plan Limits | 2025 | 2024 |
| Defined Contribution Plan limit on additions (Sections 415(c)(1)(A)) | $70,000 | $69,000 |
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) | $280,000 | $275,000 |
| Maximum compensation used to determine contributions | $350,000 | $345,000 |
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) | $23,500 | $23,000 |
| 401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older | $7,500 | $7,500 |
| Catch-up contributions to 401(k), 403(b) and 457 plans for those age 60, 61, 62 or 63* | $11,250 | N/A |
| SIMPLE deferrals (Section 408(p)(2)(A)) | $16,500 | $16,000 |
| SIMPLE additional "catch-up" contributions for employees age 50 and older | $3,500 | $3,500 |
| Catch-up contributions to SIMPLE plans for those age 60, 61, 62 or 63* | $5,250 | N/A |
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) | $160,000 | $155,000 |
| Compensation defining key employee (officer) in a top-heavy plan | $230,000 | $220,000 |
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) | $750 | $750 |
| Driving Deductions | 2025 | 2024 |
| Business mileage, per mile | 70 cents | 67 cents |
| Charitable mileage, per mile | 14 cents | 14 cents (the rate is set by statute) |
| Medical and eligible moving** per mile | 21 cents | 21 cents |
| Business Equipment | 2025 | 2024 |
| Maximum Section 179 deduction | $1.25 million | $1.22 million |
| Phase out for Section 179 | $3.13 million | $3.05 million |
| Business Meals | 2025 | 2024 |
| General deduction for eligible business-related food and beverage expenses | 50% | 50% |
| Transportation Fringe Benefit Exclusion | 2025 | 2024 |
| Monthly commuter highway vehicle and transit pass | $325 | $315 |
| Monthly qualified parking | $325 | $315 |
| Standard Deduction | 2025 | 2024 |
| Married filing jointly | $30,000 | $29,200 |
| Single (and married filing separately) | $15,000 | $14,600 |
| Heads of Household | $22,500 | $21,900 |
| Domestic Employees | 2025 | 2024 |
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. | $2,800 | $2,700 |
| Kiddie Tax |
2025 | 2024 |
| Amount used to reduce the net unearned income reported on a child's return that's subject to the Kiddie Tax | $1,350 | $1,300 |
| Estate Tax | 2025 | 2024 |
| Federal estate tax exemption | $13.99 million | $13.61 million |
| Maximum estate tax rate | 40% | 40% |
| Annual Gift Exclusion | 2025 | 2024 |
| Amount you can give each recipient | $19,000 | $18,000 |
| Alternative Minimum Tax exemption | 2025 | 2024 |
| Married filing jointly |
$137,000 and begins to phase out at $1,252,700
|
$133,300 and begins to phase out at $1,218,700 |
| Single |
$88,100 and begins to phase
out at $626,350 |
$85,700 and begins to phase out at $609,350
|
* A change that takes effect in 2025 under SECURE 2.0
** Only available for active-duty members of the military
Disclaimer:Nothing in this post constitutes legal, tax or financial advice and is intended for informational and educational purposes only. This informational and educational material is not intended, and must not be taken, as legal, tax or financial advice on any particular set of facts or circumstances or as recommendations that are suitable for any specific person. You need to contact a lawyer, accountant or financial adviser licensed in your jurisdiction for advice on your specific questions, issues and concerns. View our full Terms of Use here.