IRS releases 2026 tax brackets: Where do you land?
(NEXSTAR) – Millions of Americans could see a financial bump thanks to inflation adjustments to the tax code announced by the IRS Tuesday.
The changes to federal brackets, prompted by the rising costs of food, rent, gasoline, and other items, will go into effect for tax year 2026, meaning that they apply to returns filed in 2027.
The standard deduction — which reduces the amount of income on which you’re taxed — will also increase, from $31,500 to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction will rise from $15,750 to $16,100. Finally, for heads of households, the standard deduction will jump up from $23,625 to $24,150.
The principal reason behind the annual adjustment is to combat “bracket creep,” or the phenomenon in which taxpayers’ incomes start to go up faster than the tax thresholds built into the IRS code, causing tax bills to go up.
The IRS also announced changes to individual income tax brackets: While the percentages are the same, the earning threshold to enter a new tax bracket is higher. For Americans whose paychecks haven’t gone up in step with inflation, raising the threshold for tax brackets could create additional savings on tax day depending on the bracket in which they land.
Single taxpayers
| Tax bracket | 2025 | 2026 |
| 10% | $11,925 or less | $12,400 or less |
| 12% | Over $11,925 | Over $12,400 |
| 22% | Over $48,475 | Over $50,400 |
| 24% | Over $103,350 | Over $105,700 |
| 32% | Over $197,300 | Over $201,775 |
| 35% | Over $250,525 | Over $256,225 |
| 37% | Over $626,350 | Over $640,600 |
(IRS)
Married filing jointly
| Tax Bracket | 2025 | 2026 |
| 10% | $23,850 or less | $24,800 or less |
| 12% | Over $23,850 | Over $24,800 |
| 22% | Over $96,950 | Over $100,800 |
| 24% | Over $206,700 | Over $211,400 |
| 32% | Over $394,600 | Over $403,550 |
| 35% | Over $501,050 | Over $512,450 |
| 37% | Over $751,600 | Over $768,700 |
(IRS)
Among the other notable changes for tax year 2026 is an increase in the estate tax credit, which provides a basic exclusion amount of $15,000,000, a $1,010,000 jump.
The earned income tax credit, created to give a break to qualifying taxpayers with children, will also go up from $8,046 to $8,321.
Additionally, employers will see a major increase in the employer-provided childcare tax credit, which will go from $150,000 to $500,000, or $600,000 for eligible small businesses.
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