The IRS has announced several tax inflation adjustments for the 2026 tax year that could result in lower taxes for millions of Americans.
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First, the agency raised the standard deduction for single filers to $16,100 from $15,750 and for married couples filing jointly to $32,200 from $31,500. Heads of households will receive a standard deduction of $24,150, up from $23,625.
2026 Tax Changes Include Higher Brackets and Credits
The IRS also raised the income thresholds for each marginal tax bracket. For example, single filers will be taxed at a 22% rate for income in the $50,401-$105,700 range, up from the prior $48,476-$103,350 range. Married couples filing jointly will be taxed at 12% for income in the $24,801-$100,800 range, up from $23,851-$96,950.
Other changes include higher estate tax credits, long-term capital gains tax brackets, and employer-provided childcare tax credit. Personal exemptions and itemized deduction policies remain unchanged.
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