What’s going on?
Every year, the IRS adjusts tax brackets to keep up with inflation — basically to reflect that things cost more over time. In 2023 and 2024, inflation was high, so the IRS raised the brackets by 7% and 5.4%.
For 2026, the bump is smaller — around 2% to 4% — because inflation has cooled.
Why does raising tax brackets matter?
When the income ranges for each tax bracket go up, you can earn more money before moving into the next higher tax rate.
It helps prevent “bracket creep,” which is when inflation pushes you into a higher bracket even though you’re not really richer.
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New tax brackets for single filers (simple version)
• 10% tax: $0 – $12,400
• 12% tax: $12,401 – $50,400
• 22% tax: $50,401 – $105,700
• 24% tax: $105,701 – $201,775
• 32% tax: $201,776 – $256,225
• 35% tax: $256,226 – $640,600
• 37% tax: $640,601+
The lowest bracket used to stop at $11,925 — now it’s $12,400, about a 3.9% increase.
The highest bracket used to start at $626,351 — now it starts at $640,601, a 2.3% increase.
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Married filing jointly — new brackets
• 10%: $0—$24,800
• 12%: $24,801—$100,800
• 22%: $100,801—$211,100
• 24%: $211,401—$403,550
• 32%: $403,551—$512,450
• 35%: $512,451—$768,700
• 37%: $768,701+
Again, the increases are modest — 2% to 4%.
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What does this mean for you?
These new brackets help reduce your tax bill slightly, because:
• You can earn a bit more before hitting a higher tax rate.
• Deductions and credits are also increasing.
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Bigger standard deductions (very important)
The standard deduction — the amount you can subtract from your income before taxes — is rising too:
• Singles: $16,100
• Heads of household: $24,150
• Married couples filing jointly: $32,200
A higher deduction = less of your income gets taxed.
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Tax credits also going up
• Earned Income Tax Credit for families with 3+ kids increases to $8,231.
• Seniors get a new $6,000 deduction in 2026.
