IRS 2026 Federal Income Tax Brackets – All Updates and Key Deductions

IRS 2026 Federal Income Tax Brackets Explained

The Internal Revenue Service (IRS) has announced its federal income tax brackets for 2026, with modest but important adjustments to income thresholds and standard deductions in response to inflation and new legislation. These updates aim to prevent “bracket creep,” so wage increases from inflation do not push taxpayers into higher tax rates without real gains in purchasing power.

Marginal Tax Rates and Bracket Thresholds

For 2026, the IRS maintains the seven-tier structure set by the Tax Cuts and Jobs Act. The tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Only the portion of taxable income within each bracket is taxed at that bracket’s rate.

Below are the official IRS federal income tax brackets for 2026:

Tax Rate	Single Filers	Married Jointly	Head of Household
10%	Up to $12,900	Up to $25,800	Up to $18,600
12%	$12,901 - $51,200	$25,801 - $102,400	$18,601 - $69,800
22%	$51,201 - $97,900	$102,401 - $195,800	$69,801 - $122,300
24%	$97,901 - $182,100	$195,801 - $364,200	$122,301 - $186,500
32%	$182,101 - $231,000	$364,201 - $462,000	$186,501 - $231,000
35%	$231,001 - $640,600	$462,001 - $768,700	$231,001 - $576,500
37%	Above $640,600	Above $768,700	Above $576,500

These adjusted figures reflect a roughly 2% rise for most brackets, designed to protect taxpayers from being penalised by inflation instead of real income growth.

New Standard Deduction Amounts

For 2026, the standard deduction rises, providing relief for those who don’t itemise deductions:

• Single Filers: $16,100

• Married Filing Jointly: $32,200

• Head of Household: $24,150

This increase from the previous year helps lower overall taxable income for millions of Americans.

Key Legislative Changes for 2026

The recently enacted One Big Beautiful Bill Act makes several provisions from the 2017 tax overhaul permanent, ensuring ongoing stability for families and financial planners. Senior citizens also benefit from a temporary extra deduction of up to $6,000 for those aged 65 and older with lower incomes. This will provide much-needed relief is set to expire at the end of 2028.

What Do These Adjustments Mean for Taxpayers?

• More Room Before Shifting Brackets: Taxpayers can now earn more before rising into a new bracket, potentially reducing total taxes owed and increasing refund amounts.

• Protection Against Inflation: Adjustments ensure that ‘bracket creep’ is minimised, so pay raises that offset cost-of-living increases do not result in higher tax payments.

• Seniors Get Added Relief: If eligible, older taxpayers may claim an extra deduction amount, reducing their tax bill further.

With the IRS’s 2026 federal income tax brackets reflecting inflation and new legislation, most taxpayers will see modest relief and more predictable tax planning. Understanding the updated brackets and deduction limits is crucial for optimizing strategies and maximizing returns when filing in 2027.