Bipartisan Tax Fairness Act of 2025

This bill updates federal income tax brackets and makes some of the lower rates permanent. It would also add a new top tax rate for very high incomes. The bracket tables are refreshed for all filing statuses, including married filing jointly, heads of household, single, married filing separately, and estates and trusts. Each year, the brackets would be adjusted for inflation, with small changes rounded to $25 (or $50 for married couples filing jointly).

It also cleans up parts of the tax code that were temporary and updates a withholding reference to match the new number of tax brackets (changing “third lowest” to “fourth lowest”). These changes would start with the 2026 tax year.

• Who is affected: All individual taxpayers and estates/trusts
• What changes: Makes some expiring lower rates permanent, sets a new top rate, updates bracket tables, and adjusts them each year for inflation with new rounding rules; updates a withholding reference and removes certain temporary provisions
• When: Applies to tax years beginning after December 31, 2025 (the 2026 filing year)