Why your paycheck may grow in 2025, even without a raise
(NEXSTAR) — Tax brackets are changing, the Social Security retirement age is rising, and certain Medicare premiums are going up. Another thing set to increase? Maybe your paycheck. The potential bump isn’t limited to those getting a raise at the start of 2025, either. As it does annually, the IRS unveiled dozens of changes to various tax provisions that will impact 2025 (and when we file taxes in 2026). Those updates, namely the rising standard deduction, will influence your paycheck — unless you are receiving a raise of more than 2.7%. Why your paycheck may be on the rise IRS tax provision updates can help cut back on “bracket creep,” which occurs when inflation moves you into a higher income tax bracket or reduces how beneficial credits, deductions, and exemptions are, according to the Tax Foundation. Tax brackets and more are changing in 2024, 2025: What to know Say, for example, you are making $101,000 this year. You fall into the third tax bracket, meaning you’re taxed 10% on the first $11,600 you earn; 12% on the chunk between $11,601 and $47,149; then 22% on