2025 Federal Tax Brackets (IR-2024-273): How RTP Households and RSU Earners Use Them

Author: YCL CPA ｜ YCL Tax, Accounting & Advisory

Bottom line in one breath

If you earn wages or RSUs in Cary / RTP, U.S. federal tax still applies seven ordinary rates to taxable income. Tax year 2025 brackets come from IR-2024-273 / Rev. Proc. 2024-40 (returns generally filed in 2026). Tax year 2026 brackets are already out in IR-2025-103 / Rev. Proc. 2025-32. Use the tables to map marginal rates and withholding gaps—this is compliance planning and cash-flow management, not a tip to “pay less tax.”

Background

The IRS announced 2025 inflation adjustments in IR-2024-273; the controlling figures are in Rev. Proc. 2024-40. Rates remain 10%, 12%, 22%, 24%, 32%, 35%, and 37%. In October 2025, IR-2025-103 released 2026 adjustments (including OBBB-related items) via Rev. Proc. 2025-32. For Triangle tech workers, RSU vest FMV generally enters ordinary wages and can push taxable income into higher layers; the common 22% supplemental withholding rate is not your marginal bracket.

Old vs. new (2025 tables; 2026 known)

1. Tax base: Brackets apply to taxable income, not gross pay.

2. 2025 Single (summary): 10% to $11,925; 12% to $48,475; 22% to $103,350; 24% to $197,300; 32% to $250,525; 35% to $626,350; 37% above.

3. 2025 MFJ: 10% to $23,850; 12% to $96,950; 22% to $206,700; 24% to $394,600; 32% to $501,050; 35% to $751,600; 37% above.

4. 2025 HOH: 10% to $17,000; 12% to $64,850; then see RP 2024-40 Table 2.

5. 2026 (published summary): Single 10% to $12,400; 12% over $12,400; 22% over $50,400; 24% over $105,700; 32% over $201,775; 35% over $256,225; 37% over $640,600. MFJ thresholds roughly double; 37% over $768,700 (IR-2025-103). Full HOH/MFS lines 待核 against RP 2025-32 PDF.

6. Withholding: Optional flat 22% on separately paid supplemental wages (Pub. 15) ≠ marginal rate; large vest years may need Form W-4 / 1040-ES.

7. North Carolina: State tax is separate—do not paste federal brackets onto the NC return.

Self-check: does this affect you?

1. You have large 2025 or 2026 wages, bonuses, or RSU vests.

2. Paystubs show ~22% federal withholding while your stack likely sits in 24%/32%/35%.

3. You plan cash for vest year vs later sale year.

4. You explain U.S. progressive rates to family abroad.

5. You file NC and must keep federal vs state frameworks distinct.

Simplified example (illustration only)

Assume a Durham single filer with ~$180,000 of 2025 taxable income:

1. Income fills the 10%/12%/22%/24% layers (24% tops at $197,300).

2. An additional $80,000 RSU vest could lift taxable income toward ~$260,000, pushing the margin into 32%/35% territory (illustration).

3. If the employer withheld only 22% on that supplemental amount, withholding may lag the true marginal layer—address via W-4 or estimates.

Results vary; no tax amount is guaranteed.

Action timeline

1. Now: Overlay 2025 brackets on expected taxable income and RSU calendars.

2. Filing season 2026 (TY 2025): Use RP 2024-40 brackets.

3. Calendar 2026 income: Switch planning to IR-2025-103 / RP 2025-32.

4. Year-end: Reconcile W-2s, vest notices, and estimated-tax safe harbors (Pub. 505 / 1040-ES—待核).

5. Cross-border: China-entity / Form 5471 issues are separate from bracket lookup.

What YCL can do

1. Map 2025/2026 federal brackets to your filing status.

2. Vest-year withholding vs marginal-rate gap analysis (compliance cash flow).

3. Form W-4 / 1040-ES coordination with NC withholding.

4. Bilingual Cary + Shanghai explanations for dual-country families.

5. CPA Chenchen Liu and Gloria; Free Consultation.

FAQ

Q: Did “bracket inflation” raise my tax rate?

A: Indexing usually raises thresholds. The published percentage layers remain the familiar seven rates.

Q: My stub shows 22%—is that my whole federal rate?

A: No. 22% may be a supplemental withholding rate or one marginal layer; total tax is stacked.

Q: 2026 tables are out—do I still use 2025 for last year’s income?

A: Yes. Match the table to the tax year of the income.

Book a consult

YCL Tax, Accounting & Advisory

Web: yclcpa.com ｜ Email: info@yclcpa.com

Phone: 919-802-8376 / 980-202-0666 ｜ WeChat: YCLUSA

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Disclaimer

This article is general tax information only and is not tax, legal, or investment advice for any person or business. Application depends on filing status, facts, and current IRS, SSA, and NCDOR guidance. Items marked 待核 require pre-filing verification. Consult a licensed professional for advice specific to you.