(NewsNation) — The IRS has unveiled new federal income tax brackets and standard deductions for 2026.
Thursday’s announcement includes higher income thresholds for each tax bracket, which will apply to tax year 2026 for returns filed in 2027. The standard deduction is also increasing.
The latest changes will impact over 60 tax provisions resulting from the annual inflation adjustment process.
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Here’s the new standard deduction and income tax brackets for 2026.
Standard deduction increases in 2026
Most taxpayers claim the standard deduction, a fixed amount you can deduct to reduce your taxable income and lower your federal tax bill.
Married couples filing jointly can claim a greater standard deduction than single taxpayers.
The standard deduction for each filing status will be 2.2% higher in 2026 than in the year prior:
- Single; married filing separately: $16,100
- Head of household: $24,150
- Married filing jointly, surviving spouses: $32,200
Tax brackets for tax year 2026
The federal income tax is progressive, meaning the tax rate increases as your taxable income rises.
However, it’s important to remember that when your income jumps to a higher tax bracket, you don’t pay the higher rate on your entire income. Instead, you are taxed only on the portion in the higher bracket.
Tax rates are divided into seven different brackets by income level: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your filing status also determines how much income tax you pay.
Each marginal tax bracket for tax year 2026 based on filing status and income:
| If your taxable income is greater than: | Taxes owed |
|---|---|
| $640,600 ($768,700 for married couples filing jointly) | 37% |
| $256,225 ($512,450 for married couples filing jointly) | 35% |
| $201,775 ($403,550 for married couples filing jointly) | 32% |
| $105,700 ($211,400 for married couples filing jointly) | 24% |
| $50,400 ($100,800 for married couples filing jointly) | 22% |
| $12,400 ($24,800 for married couples filing jointly) | 12% |
| $12,400 or less ($24,800 or less for married couples filing jointly) | 10% |
Changes to the earned income tax credit, estate tax
Other notable tax provision changes in the IRS announcement include:
Earned Income Tax Credits: The maximum Earned Income Tax Credit (EITC) for tax year 2026 is $8,231 for qualifying taxpayers who have three or more qualifying children. That’s up from $8,046 for tax year 2025.
- The EITC provides support to low and moderate-income working parents but many don’t take advantage of it. Find out if you qualify here.
Annual Exclusion for Gifts. The annual exclusion for gifts remains at $19,000 for 2026. However, the annual exclusion for gifts to a spouse who is not a U.S. citizen increases to $194,000, up $4,000 from 2025.
Adoption Credits: For tax year 2026, the maximum credit allowed for qualified adoption expenses rises to $17,670, up from $17,280 in 2025. Of that amount, up to $5,120 may be refundable.
Estate Tax Credits: Estates of decedents who die during 2026 have a basic exclusion amount of $15,000,000, up from a total of $13,990,000 for estates of those who died in 2025.
Foreign Earned Income Exclusion. The foreign earned income exclusion is $132,900 for tax year 2026, up from $130,000 in 2025.
This is a developing story that will be updated.
