IRS Unveils Updated Federal Income Tax Brackets for 2026
The IRS has released its updated federal income tax brackets for the year 2026, along with adjustments to standard deductions. These changes reflect new income thresholds applicable to tax returns filed in 2027.
New Federal Income Tax Brackets for 2026
The changes include an increase in the income thresholds for each tax bracket. Key figures are as follows:
- The top tax rate of 37% will apply to individuals with taxable income exceeding $640,600.
- For married couples filing jointly, the top rate applies to those earning $768,700 or more.
Standard Deductions Increased
In addition to tax bracket adjustments, the standard deduction will see a rise in 2026. The new figures are:
- For married couples filing jointly: $32,200, up from $31,500 in 2025.
- For single filers: $16,100, an increase from $15,750.
Impact on Other Tax Provisions
Alongside the federal income tax brackets, the IRS has also adjusted other tax provisions:
- Long-term capital gains brackets have been updated.
- Estate and gift tax exemptions have been increased.
- Eligibility criteria for the earned income tax credit have been revised.
These announcements come amid ongoing government shutdown discussions, which have led to significant workforce furloughs at the IRS.
Taxpayers should stay informed about these developments as they prepare for the upcoming tax season.
