IRS Releases 2026 Income Tax Brackets and Standard Deductions

The Internal Revenue Service has released its new income tax brackets for 2026. These adjustments will impact the taxes Americans file in early 2027. The annual update accounts for inflation and affects all filing statuses.

The changes raise the income thresholds for each tax bracket. They also increase the standard deduction amounts. This provides a measure of relief from so-called “bracket creep.”

Standard Deduction Sees Modest Increase for All Filers

The standard deduction is a fixed amount that reduces taxable income. Most U.S. taxpayers claim it to simplify their filing process. The new amounts represent a 2.2 percent increase across the board.

For single filers, the deduction rises to $16,100. It was previously $15,750 for the 2025 tax year. Married couples filing jointly will see their deduction jump to $32,200.

Heads of households also receive a boost. Their standard deduction increases to $24,150 for 2026. According to reports from NewsNation, these figures are officially confirmed by the IRS.

Understanding the New Marginal Tax Rates

The IRS has adjusted the income ranges for its seven marginal tax rates. The top rate of 37 percent remains for high-income earners. This applies to individuals earning over $640,600 and couples over $768,700.

The lowest rate stays at 10 percent. It applies to taxable income up to $12,400 for single individuals. For married couples filing jointly, the 10 percent bracket covers income up to $24,800.

Taxable income is calculated after subtracting deductions. As CNBC explains, you take your adjusted gross income and subtract your standard or itemized deduction. The new brackets then apply to the resulting figure.

The annual IRS adjustments ensure inflation does not unfairly push taxpayers into higher brackets. These new figures for the 2026 tax year offer a clear preview for financial planning.

Info at your fingertips

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

The standard deduction for a single taxpayer in 2026 is $16,100. This is an increase of $350 from the 2025 amount. It reduces your taxable income before calculating your tax bill.

Did the top federal income tax rate change for 2026?

No, the top marginal tax rate remains 37 percent for 2026. The income threshold for this bracket was simply adjusted higher for inflation. It now starts at $640,600 for single filers.

When will I use these new 2026 tax brackets?

You will use these brackets when you file your tax return in 2027. They apply to income you earn throughout the 2026 calendar year. The IRS announces changes well in advance for planning.

How does this affect married couples filing jointly?

Married couples filing jointly get a standard deduction of $32,200 for 2026. Their tax brackets are also wider than those for single filers. This provides a benefit known as the “marriage penalty” relief.

Why does the IRS adjust the brackets every year?

The IRS makes annual adjustments based on inflation data. This is mandated by federal law to prevent bracket creep. It stops taxpayers from owing more tax simply because their pay kept pace with inflation.