The IRS has released updated 2026 income tax brackets, reflecting annual inflation adjustments and new provisions from the One Big Beautiful Bill Act (OBBBA). Both married and single filers will see higher bracket thresholds and larger standard deductions — changes that could impact millions of taxpayers starting next year.
💰 Key Takeaway
Tax rates remain the same, but the income levels at which each rate applies are shifting upward. This means most taxpayers will owe slightly less in federal income tax, thanks to inflation-based adjustments that prevent “bracket creep.”
📊 2026 Federal Tax Brackets
| Tax Rate | Single Filers (2026) | Married Filing Jointly (2026) |
|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 |
| 12% | $11,926 – $48,475 | $23,851 – $96,950 |
| 22% | $48,476 – $103,350 | $96,951 – $206,700 |
| 24% | $103,351 – $197,300 | $206,701 – $394,600 |
| 32% | $197,301 – $250,525 | $394,601 – $501,050 |
| 35% | $250,526 – $626,350 | $501,051 – $751,600 |
| 37% | Over $626,350 | Over $751,600 |
These updates largely mirror 2025 rates but include modest inflation adjustments across all brackets.
🧾 Standard Deduction Increases
Along with the new brackets, the standard deduction will rise in 2026:
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Single Filers / Married Filing Separately: $16,100
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Married Filing Jointly: $32,200
For seniors (65 and older), additional deduction amounts still apply. The increase means more income will remain untaxed, offering relief to middle-income households.
💡 What This Means for Taxpayers
Single Filers:
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Benefit from higher income thresholds before moving into higher brackets.
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The new 0% capital gains bracket covers up to roughly $49,450 in income — ideal for long-term investors.
Married Filing Jointly:
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Brackets roughly double, preserving fairness for couples.
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The higher SALT (state and local tax) deduction cap — raised to $40,000 — offers additional savings for high-tax states.
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Greater deductions and adjusted thresholds could help offset inflation’s impact on household earnings.
⚖️ Other Key Adjustments
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Estate tax exemption rises to roughly $15 million per person.
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The alternative minimum tax (AMT) thresholds are also set to increase.
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Child tax credits and other family-related deductions will phase out at slightly higher income levels.
🧭 Planning Ahead
Tax experts recommend reviewing withholding and estimated payments early in 2026 to ensure accuracy under the new brackets. Those who expect bonuses, investment gains, or major life changes — such as marriage or home purchase — should reassess their tax strategy before year-end.
Financial advisors also note that the changes could create timing opportunities: deferring certain income to 2026 or accelerating deductions into 2025 may help taxpayers lower their overall liability.
🏁 Bottom Line
The 2026 IRS tax bracket adjustments bring moderate relief to both married and single filers by expanding income thresholds and increasing standard deductions. While tax rates remain unchanged, smart planning and awareness of these updates can make a noticeable difference when filing next year.
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