The IRS didn’t raise tax rates in 2025—they’re still the same seven marginal rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. What changed? The income thresholds got bumped up to account for inflation, helping prevent “bracket creep”—where inflation pushes you into a higher tax bracket despite no real increase in spending power.

If you haven’t been following closely, the One Big Beautiful Bill Act (OBBBA) is a sweeping budget reconciliation law signed on July 4, 2025, covering tax reform, spending, healthcare, immigration, defense, and more. In political terms, it’s the modern-day omnibus — a single massive law with far-reaching effects.