The Internal Revenue Service (IRS) has officially released revised federal income tax brackets and standard deductions for 2026, a change that impacts millions of filers.
The updated numbers, released on Thursday, increase income levels in all tax brackets for the 2026 tax year that will take effect for returns in 2027. Other major provisions, such as long-term capital gain brackets, estate and gift tax exemptions, and earned income tax credit eligibility, also are affected by the changes.
For the 2026 tax year, the IRS says, the 37% top marginal rate will apply to:
- Individuals with incomes of more than $640,600
- Joint filers who are married with incomes of $768,700 or higher
- These changes are intended to account for inflation and preserve tax fairness at all levels.
- The IRS also raised the standard deduction for 2026:
- $32,200 for joint filers who are married (an increase from $31,500 in 2025)
- $16,100 for single filers (an increase from $15,750)
The announcement came on the heels of a press release from the agency regarding its operations during the current government shutdown when about half of its employees are being furloughed.
Marginal Tax Brackets for 2026
| Taxable Income | Tax Rate |
|---|---|
| $0 to $24,800 | 10% of taxable income |
| $24,801 to $100,800 | $2,480 plus 12% of the amount over $24,800 |
| $100,801 to $211,400 | $11,600 plus 22% of the amount over $100,800 |
| $211,401 to $403,550 | $35,932 plus 24% of the amount over $211,400 |
| $403,551 to $512,450 | $82,048 plus 32% of the amount over $403,550 |
| $512,451 to $768,700 | $116,896 plus 35% of the amount over $512,450 |
| $768,701 or more | $206,583.50 plus 37% of the amount over $768,700 |
| Taxable income | Tax rate / formula |
|---|---|
| $0 to $12,400 | 10% of taxable income |
| $12,401 to $50,400 | $1,240 plus 12% of the amount over $12,400 |
| $50,401 to $105,700 | $5,800 plus 22% of the amount over $50,400 |
| $105,701 to $201,775 | $17,966 plus 24% of the amount over $105,700 |
| $201,776 to $256,225 | $41,024 plus 32% of the amount over $201,775 |
| $256,226 to $640,600 | $58,448 plus 35% of the amount over $256,225 |
| $640,601 or more | $192,979.25 plus 37% of the amount over $640,600 |
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