As 2025 comes to an end, taxpayers are already looking ahead to what the IRS 2026 tax brackets will mean for their finances. Every year, the IRS adjusts tax brackets and deductions to account for inflation, ensuring that incomes don’t get unfairly taxed at higher rates.
For 2026, new changes tied to inflation and recent legislation like the One Big Beautiful Bill (OBBB) are expected to provide relief to millions of Americans.
The adjustments won’t change the tax rates, but they will raise the income thresholds, giving taxpayers a chance to keep more of their hard-earned money.
What Are the IRS 2026 Tax Brackets?
The IRS tax brackets are income ranges used to determine how much tax you owe. For 2026, the rates are expected to remain the same at 10%, 12%, 22%, 24%, 32%, 35%, and 37%, but the thresholds—the income amounts taxed at each rate—will be higher.
This adjustment prevents “bracket creep”, which happens when inflation pushes taxpayers into higher brackets even though their real income hasn’t actually increased.
Projected IRS 2026 Tax Brackets
Here’s an overview of the expected thresholds for single filers in 2026, based on inflation adjustments of around 2.7% and a special 4% increase for the lower brackets under OBBB.
| Tax Rate | 2025 Threshold (Single) | Projected 2026 Threshold (Single) |
|---|---|---|
| 10% | Up to $11,600 | Up to $12,050 |
| 12% | $11,601 – $47,150 | $12,051 – $49,050 |
| 22% | $47,151 – $100,525 | $49,051 – $103,200 |
| 24% | $100,526 – $191,950 | $103,201 – $196,100 |
| 32% | $191,951 – $243,725 | $196,101 – $250,300 |
| 35% | $243,726 – $609,350 | $250,301 – $625,000 |
| 37% | Over $609,351 | Over $625,001 |
How the Changes Affect Your Wallet
The IRS 2026 tax brackets will bring real differences to taxpayers across the country.
- Middle-income households: With higher thresholds, less of your income falls into higher tax brackets. For example, someone earning $50,000 will have more of their income taxed at the 12% rate rather than the 22% rate.
- Seniors: There’s an added extra deduction of about $6,000 for those aged 65 and older, helping retirees reduce taxable income.
- High earners: While the tax rates don’t change, phaseouts and caps on deductions like SALT (state and local tax deductions) may limit benefits. The cap is expected to rise temporarily to $40,000 in 2026.
Standard Deduction in 2026
Another big part of the tax update is the standard deduction, which remains permanently doubled under OBBB and continues to rise with inflation. For 2026, it is expected to increase by about 2.7%, meaning more income will be shielded from federal tax.
For example:
- Single filers: Around $15,150 (up from $14,750 in 2025).
- Married couples filing jointly: Around $30,300.
This adjustment helps lower overall taxable income and keeps more money in taxpayers’ pockets.
Other Relevant Changes in 2026
- Child Tax Credit: Adjusted for inflation, ensuring families with children get continued relief.
- Alternative Minimum Tax (AMT): Exemption levels rise, preventing middle-income households from being trapped by AMT rules.
- SALT Deduction: Temporarily raised cap to $40,000 for itemizers, a benefit especially for residents of high-tax states.
- Senior Benefits: Higher standard deductions continue through 2028, supporting retirees on fixed incomes.
Practical Example
Imagine a single filer earning $60,000 in 2026. Under the new brackets:
- First $12,050 taxed at 10% = $1,205
- Next $37,000 taxed at 12% = $4,440
- Remaining $10,950 taxed at 22% = $2,409
Total tax owed: $8,054 (before deductions and credits).
In 2025, the same person would have owed slightly more, around $8,300. This means real savings due to bracket adjustments.
Why These Changes Matter
For everyday taxpayers, the 2026 adjustments mean:
- Lower effective tax rates on the same income.
- More generous deductions, especially for seniors and families.
- Protection from inflation, preventing tax burdens from increasing unfairly.
For high-income earners, the picture is more complex, as deduction limits still apply. But overall, the 2026 IRS changes are designed to ensure fairness and stability.
The IRS 2026 tax brackets bring important updates that will affect millions of Americans. With tax rates staying the same but income thresholds and deductions increasing, most taxpayers will owe less than in 2025.
Middle-income earners gain the most from inflation adjustments, seniors enjoy higher deductions, and families continue to benefit from credits. While high earners may still face deduction limits, the changes overall provide stability and protection against bracket creep.
Planning ahead for 2026 can help taxpayers maximize deductions, manage income strategically, and keep more of what they earn.
FAQs
Will the IRS tax rates change in 2026?
No, the rates remain the same (10%, 12%, 22%, 24%, 32%, 35%, and 37%), but the thresholds are adjusted upward.
What is the standard deduction in 2026?
It is expected to rise to around $15,150 for single filers and $30,300 for joint filers.
Who benefits the most from the 2026 tax bracket changes?
Middle-income taxpayers and seniors benefit the most, as more income is taxed at lower rates and deductions increase.