"In case you missed it, the changes were announced back in October. Notably, the standard deduction for 2026 (to be filed in 2027)-which reduces the amount of your income you'll 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.""
"Another major change from the IRS is the income threshold for each of the seven federal income tax brackets, which are set to change, too. 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 more than $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."
The IRS raised 2026 standard deductions and adjusted federal income tax brackets to account for inflation. Standard deductions will be $32,200 for married filing jointly, $16,100 for single or married filing separately, and $24,150 for heads of household. Increasing the standard deduction reduces taxable income and can lower tax bills. The IRS updated thresholds for all seven tax brackets, including a 37% top individual threshold at incomes above $640,600 and a 37% top married filing jointly threshold above $768,700. Lower brackets include a 12% rate beginning at $12,400 for individuals and $24,800 for married couples, with 10% below those amounts.
Read at Fast Company
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