IRS Announces 2026 Income Tax Brackets, Updated Standard Deduction

Each year, the IRS updates common tax provisions, such as income tax brackets and the standard deduction, to ensure the tax code is keeping pace with the rising cost of living.

These tweaks — formally known as inflation adjustments — help prevent “bracket creep,” where taxpayers who received a cost-of-living raise can pay more in taxes even though their purchasing power remains unchanged.

Inflation adjustments for the 2025 tax year were set at 2.8% — smaller than previous years as inflation cooled. In 2026, the story is similar, with the IRS’ adjustments coming in at 2.7%.

Even though next year’s changes are again modest, they could still mean lower tax bills for some when they file in 2027. Here's a look at how certain tax thresholds and credits will shift for the 2026 tax year, plus a comparison to 2025.

Federal tax brackets and tax rates

In the U.S., there are seven marginal rates — 10%, 12%, 22%, 24%, 32%, 35% and 37% — which will remain unchanged for 2026 due to the One Big Beautiful Bill Act (OBBBA) that was passed in July.

Contrary to a popular myth, it’s uncommon for people to pay a single flat federal tax rate on their taxable income. Instead, portions of a person’s income can be taxed at different rates depending on which tax brackets they fall into. For example, some of a person’s income could be taxed at 10%, another chunk at 12% and so on.

For 2026, the IRS is adjusting those tax brackets — the windows of income that dictate where a tax rate ends and begins — for each filing status. The adjustments mean that some people may be able to keep some of their income in lower tax brackets, and those who received a cost-of-living raise may avoid getting a portion of their income pushed into a higher bracket.

Married filers, for example, can make up to $96,950 to remain with a top tax rate of 12%, compared with $94,300 in 2024. This increase could allow some couples to shelter an additional $2,650 from a higher tax rate in 2025.

Click below to see how the brackets will shift for each filing status.

» MORE: See the full 2026 tax brackets for each filing status

Standard deduction

The IRS lets most filers lower their taxable income by taking the standard deduction or itemizing their returns.

The standard deduction, a flat amount based on filing status and age, is popular, as it requires less work to claim and is often more beneficial for those who might not have deductible expenses.

For 2026, the standard deduction will be $16,100 for single filers and those married filing separately, a $350 increase from 2025. Joint filers will be eligible to take $32,200 and heads of household can take $24,175, a $700 and $550 increase over 2025, respectively.

» Need help deciding whether to itemize or take the standard deduction? Learn about the differences

What else will change for taxes in 2026?

Also included in the IRS' 36-page inflation release are various changes to several tax provisions beyond the federal tax brackets.

HSAs and FSAs

Starting in 2026, taxpayers who contribute to a health flexible spending account (FSA) can contribute up to $3,400 and, if their plan permits, carry over up to $680 into the next tax year.

For those with health savings accounts, the 2026 limit for contributions will rise to $4,400 for self coverage and $8,750 for family coverage.

Gift tax exclusion

The annual exclusion for gifts, which limits how much taxpayers can give an individual without filing a gift tax return on certain gifts, will be $19,000 per person in 2026, remaining the same as in 2025.

Estate tax exclusion

The lifetime estate tax exclusion establishes a threshold for the taxation of estates upon a wealthy person's death. In 2026, estates valued at or below $15 million will not be subject to estate tax, up from $13.9 million in 2025.

Earned income tax credit

The earned income tax credit, a refundable tax credit for low- and moderate-income workers, will also see a bump in 2026. The total credit amount depends on income and the number of children — but people without kids can still qualify. For 2025, the earned income credit ranges from $649 to a maximum of $8,046. In 2026, the credit will increase to a maximum of $8,231 for qualifying taxpayers with three or more children.

Key tax effects of the ‘Big, Beautiful Bill’

Alongside the IRS’ inflation adjustments making changes to what people’s 2026 tax picture may look like, the OBBBA may have some effects on what they pay as well.

Tax rates stay the same

2026 tax rates were originally slated to revert back to pre-2017 figures: 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. With the OBBBA’s passage, however, the seven tax rates will stay as-is, with rates topping out at 37%.

Cap on itemized deductions

Those in the 37% tax bracket will notice a new 35% cap on itemized deductions. This means that instead of getting 37 cents on the dollar for itemized deductions, these filers will get 35 cents on the dollar.

SALT deduction increases