IRS Announces 2026 Tax Brackets: Standard Deduction Updates

The Internal Revenue Service has announced new federal income tax brackets for the 2026 tax year. This update adjusts the income thresholds that determine how much Americans owe. The changes are for tax returns filed in 2027.

These annual adjustments are designed to account for inflation. They aim to prevent “bracket creep,” where inflation pushes taxpayers into a higher tax bracket without an actual increase in real income.

Standard Deduction Sees Notable Increase

The standard deduction is a fixed amount that reduces your taxable income. Most U.S. taxpayers claim this deduction to lower their federal tax bill. The amount varies by filing status, with married couples filing jointly receiving the highest benefit.

For 2026, the standard deduction will rise by 2.2% across all filing categories. According to NewsNation, this is a direct response to ongoing inflation measurements. The increase provides a modest but direct tax cut for millions of filers.

Single filers will see their deduction increase to $16,100. It was $15,750 for the 2025 tax year. Married couples filing jointly get a new deduction of $32,200, up from $31,500.

Heads of households will have a standard deduction of $24,150. This is an increase from the $23,625 available in 2025. These adjustments help preserve the purchasing power of taxpayers.

Understanding the New Federal Tax Brackets

The IRS has increased the income thresholds for every tax bracket. The new rates apply to income earned in the 2026 tax year. The agency also adjusted brackets for long-term capital gains.

The top marginal tax rate remains 37% for high-income earners. This rate applies to individuals making over $640,600. For married couples filing jointly, the threshold is $768,700.

The lowest rate stays at 10%. It applies to taxable incomes of $12,400 or less for single individuals. For married couples filing together, the 10% rate applies to income up to $24,800. As explained by CNBC, your taxable income is your adjusted gross income minus your standard or itemized deductions.

These 2026 tax bracket adjustments represent a systematic effort to keep the tax code aligned with the economy. The changes will impact every American taxpayer when they file their returns in 2027.

Info at your fingertips

What is the standard deduction for a single person in 2026?

The standard deduction for single taxpayers will be $16,100 in 2026. This is an increase of $350 from the 2025 amount of $15,750.

How much is the standard deduction for married couples filing jointly?

Married couples filing jointly will have a standard deduction of $32,200 in 2026. This is a $700 increase from the $31,500 available in the previous year.

What is the highest tax bracket for 2026?

The highest income tax rate remains 37% for the 2026 tax year. This rate applies to single individuals with taxable income over $640,600 and married couples filing jointly with income over $768,700.

Why are the tax brackets changing?

The IRS adjusts tax brackets annually to account for inflation. This process, known as indexing, helps prevent taxpayers from owing more money simply because their cost-of-living adjustments pushed them into a higher bracket.

When do these new tax brackets take effect?

The new brackets and standard deductions apply to the 2026 tax year. Taxpayers will use these figures when they file their returns in early 2027.