2026 Tax Bracket Updates
For the 2026 tax year (i.e. returns filed in 2027), the federal income tax brackets and standard deductions will increase to keep pace with inflation, under updates recently announced by the Internal Revenue Service (IRS).
Under the new schedule, the ordinary federal income tax rates remain the same: 10 %, 12 %, 22 %, 24 %, 32 %, 35 %, and 37 %. The thresholds associated with each rate have shifted upward. For example, single filers now pay 10% on income up to $12,400, 12% on income up to $50,400, and the top rate of 37% applies only to those with taxable income above $640,600. Married couples filing jointly get correspondingly wider thresholds — for them, the 10% rate applies up to $24,800, 12% up to $100,800, and 37% kicks in above $768,700.
At the same time, the standard deduction — the default deduction most taxpayers take instead of itemizing — is going up as well. For single filers (and married filing separately), it will be $16,100; for married couples filing jointly, $32,200; and for heads of household, $24,150. These increases — along with the inflation-adjusted brackets — help many taxpayers avoid what’s called “bracket creep,” where inflation pushes wages into higher tax rates even though real income hasn’t increased.
