IRS Announces New Tax Brackets and Deductions for 2026

The IRS has shared updated tax brackets and standard deduction amounts for the 2026 tax year.

This update reflects changes from a significant domestic policy bill advocated by President Donald Trump and Congressional Republicans earlier this year. Most of these changes, which are intended to be permanent, were established during Trump’s first term and were initially set to phase out.

Some key changes include:

• The standard deduction for 2026 is set at $32,200 for married couples filing jointly, $16,100 for single filers or those filing separately, and $24,150 for heads of households. The legislation prevented a reduction of the standard deduction by half and increased its value by a few hundred dollars, according to a think tank focused on U.S. tax policy.
• For the 2025 tax year, the standard deduction will rise to $31,500 for married couples filing jointly, $15,750 for singles and those filing separately, and $23,625 for heads of households. Previously, those figures were $30,000, $15,000, and $22,500, respectively.
• The bill also raises the inheritance tax exemption. In 2026, estates valued up to $15 million will be exempt from such taxes, up from approximately $14 million in 2025.

According to the IRS, the revised tax rates will be:

• 37% for single taxpayers with incomes over $640,600 ($768,700 for married couples filing jointly). Before the new legislation, the top rate was projected to climb to 39.6%.
• 35% if income exceeds $256,225 ($512,450 for married couples).
• 32% if income surpasses $201,775 ($403,550 for married couples).
• 24% if income exceeds $105,700 ($211,400 for married couples).
• 22% if income is over $50,400 ($100,800 for married couples).
• 12% if income exceeds $12,400 ($24,800 for married couples).
• 10% for singles with incomes of $12,400 or less ($24,800 for married couples).

For more information on additional tax changes for 2026, including adjustments for inflation, you can check the IRS’s official communications.