For the 2026 tax year, the IRS has announced inflation adjustments that increase both the income brackets and standard deduction amounts for federal taxes. Tax brackets will rise by about 4% for lower-income ranges and roughly 2% for higher earners, allowing filers to earn more before moving into a higher tax rate when they file their 2027 returns.
The tax rates themselves are unchanged; only the income thresholds are elevated to keep pace with inflation. For the 2026 tax year, single filers will pay federal income tax according to the following marginal tax brackets. Only the portion of income within each bracket is taxed at that rate not the entire income.
“The inflation adjustments for tax year 2026 reflect the Administration’s ongoing commitment to providing tax relief to workers, families, and small businesses”- IRS Commissioner Danny Werfel
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Contents
IRS Confirms 2026 Tax Brackets
Millions of Americans could see a financial benefit from inflation adjustments to the federal tax code announced by the IRS for the 2026 tax year, which will be reflected in returns filed in 2027. The IRS is raising income limits for its federal income tax brackets in 2026 to address inflation, a yearly adjustment aimed at preventing “bracket creep” when inflation pushes Americans into higher tax brackets even if their real purchasing power hasn’t increased. These updates typically occur each October or November and take effect for tax returns filed the following year.
On Thursday, the agency said that it is raising the income thresholds for each bracket, which apply to tax year 2026 for returns filed in 2027.
2026 Marginal Tax Rates for Single Filers
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 – $12,400 |
| 12% | $12,401 – $50,400 |
| 22% | $50,401 – $105,700 |
| 24% | $105,701 – $201,775 |
| 32% | $201,776 – $256,225 |
| 35% | $256,226 – $640,600 |
| 37% | $640,601 and above |
The IRS confirms that only the income above each threshold is taxed at the corresponding marginal rate, not the entire income. These adjustments provide many taxpayers relief by reducing the likelihood of paying higher taxes solely due to inflation-driven income increases rather than real earning growth.
These changes to the tax code will help ensure that tax brackets and deductions keep pace with inflation, shielding taxpayers from paying more tax simply due to rising prices- Treasury Secretary Janet Yellen
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2026 Federal Marginal Tax Rates for Married Filing Jointly
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 – $24,800 |
| 12% | $24,801 – $100,800 |
| 22% | $100,801 – $211,400 |
| 24% | $211,401 – $403,550 |
| 32% | $403,551 – $512,450 |
| 35% | $512,451 – $768,700 |
| 37% | $768,701 and above |
The standard deduction has increased to $32,200 for married couples filing jointly in 2026. These inflation adjustments help prevent “bracket creep,” allowing taxpayers to earn more income before moving to higher tax brackets without an increase in real tax burden. Marginal tax rates mean only income above each bracket threshold is taxed at the higher rate, not the entire amount.
Standard Deduction
The OBBBA raised the standard deduction significantly for 2025 by $750 for single filers and $1,500 for joint filers, on top of the inflation adjustments that are now applied regularly starting in 2026.
The 2026 increase of $350 for singles and $700 for joint filers is specifically due to the IRS’s annual inflation adjustment process. The standard deduction benefits many taxpayers by reducing taxable income, effectively increasing the amount of income exempt from federal tax.
| Filing Status | Standard Deduction |
|---|---|
| Single; Married Filing Separately | $16,100 |
| Married Filing Jointly; Surviving Spouse | $32,200 |
| Head of Household | $24,150 |
The IRS also increased the additional standard deduction for elderly or visually impaired taxpayers to $2,050 for unmarried taxpayers and $1,650 for married taxpayers filing jointly. These adjustments aim to prevent taxpayers from paying more tax purely due to inflation-driven increases in income.
The 2026 tax bracket and deduction adjustments prevent ‘bracket creep’ while reinforcing fairness in the tax system- IRS Chief Counsel Caren Cole
Personal Exemption
For the 2026 tax year, personal exemptions remain at $0, continuing the suspension that started with the Tax Cuts and Jobs Act of 2017 and has been in effect through 2025. This means taxpayers cannot claim a personal exemption to reduce their taxable income for themselves or their dependents.
Adjusting tax brackets and deductions for inflation is critical to maintaining a fair tax system that protects taxpayers from being disproportionately impacted by economic changes- Treasury Deputy Secretary Adewale Adeleke
FAQ’s
What are the 2026 federal income tax brackets?
For 2026, there are seven tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top rate of 37% applies to single filers with taxable income over $640,600 and married filing jointly over $768,700.
What is the standard deduction for 2026?
The standard deduction rises to $16,100 for singles, $32,200 for married filing jointly, and $24,150 for heads of household, reflecting a modest increase to account for inflation.
What is marginal tax rate?
Marginal tax brackets mean your income is taxed in layers. For example, a single filer with $50,000 taxable income pays 10% on the first $12,400, 12% on income between $12,401 and $50,000, not the higher rate on the entire amount.
Are personal exemptions available for 2026?
No, personal exemptions remain suspended at $0 since the 2017 tax overhaul, and taxpayers rely on the standard deduction and credits for reducing taxable income.
What other tax credits or limits have changed for 2026?
Adoption credits, earned income tax credits, estate and gift tax exclusions, and limits for health savings accounts and flexible spending accounts have all been adjusted upwards for inflation in 2026.
When do these 2026 changes take effect?
They apply to income earned in 2026 and will be reflected on tax returns filed in 2027.