Nonprofit Resources
Key Federal Tax Figures for 2025
We are pleased to provide our annual Key Federal Tax Figures summary, which is designed to be a helpful reference tool throughout the year. We’ve expanded and enhanced the table this year to provide you with additional information.
You can download or print your free copy here:
Download the 2025 Table >
Several points of interest emerge from a review of the 2025 figures.
Increase in Standard Deduction
The tax reform legislation enacted in December 2017 nearly doubled the standard deduction. For 2025, the new higher amounts increased again by an inflation adjustment. For a married couple filing a joint return, the increase is $800, to $30,000. Similar increases occurred for heads of households, single individuals, and married couples filing separate returns.
Automobile Mileage Rates
The tax-free mileage rate for business use of a vehicle increased to 70.0 cents per mile from 67.0 cents per mile, an increase of 3.0 cents per mile from 2024.
The tax-deductible mileage rate for medical mileage stayed the same, at 21.0 cents per mile. The mileage rate for charitable mileage also remained unchanged at 14.0 cents per mile. Note that with the suspension of the moving expense deduction, there is no mileage reimbursement rate for moving mileage.
Other Inflation Adjustments for 2025
Inflation adjustments affect many areas, but not everything. Examine the specific issues that affect your organization carefully. Some examples may include:
| In 2024 and Returns for 2024 | In 2025 and Returns for 2025 |
|
|---|---|---|
| Foreign earned income exclusion | $126,500 | $130,000 |
| OASDI maximum wage base | $168,600 | $176,100 |
| Maximum annual contribution to defined contribution plan | $69,000 | $70,000 |
| Maximum salary deduction for 401(k)/403(b) | $23,000 | $23,500 |
| Maximum income inclusion for NQ plans in 501(c)(3) organizations | $23,000 | $23,500 |
| IRA contribution limit | $7,000 | $7,000 |
| Maximum automobile value for using cents-per-mile rate | $62,000 | $61,200 |
| Highly compensated employee limit | $155,000 | $160,000 |
| Annual gift tax exclusion amount | $18,000 | $19,000 |
Please contact us with any questions.