"Notably, the standard deduction for 2026 (to be filed in 2027) - which reduces the amount of your income you will be taxed on - will rise. "For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly," the October announcement explains. "For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150.""
"The highest tax bracket, for those who file individually, is now for incomes over $640,600, which will be taxed at a 37% rate. For married people filing jointly, the same is true for those earning over $768,700. That group is followed by the 35% bracket, which includes incomes over $256,225 for individuals and over $512,450 for married couples. On the lower end of the spectrum, individuals and married couples earning at least $12,400 and $24,800, respectively, will be taxed at a 12% rate."
The IRS adjusted tax code amounts for inflation, increasing the 2026 standard deduction to $32,200 for married couples filing jointly, $16,100 for single taxpayers and married individuals filing separately, and $24,150 for heads of household. Income thresholds across the seven federal tax brackets rose, with the top individual bracket now applying to incomes over $640,600 and the top married-joint bracket applying over $768,700, both taxed at 37%. The 35% bracket begins at $256,225 for individuals and $512,450 for married couples. Lower brackets include 12% for incomes at least $12,400 (individuals) and $24,800 (married), and 10% for incomes at or below those amounts. Higher standard deductions reduce taxable income and may lower tax bills for many filers.
Read at Fast Company
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