US politics
fromAxios
1 week agoNew IRS tax brackets and 2026 changes could boost paychecks, lower taxes
New tax breaks apply to 2026 returns; 2026 brackets and withholding affect paychecks now and apply to returns filed in 2027.
One of the first things to understand is the difference between gross pay and net pay. Gross pay is your total earnings before deductions, while net pay is what actually lands in your account. Taxes, retirement contributions, insurance premiums, and other withholdings reduce the amount you can spend or save. Many people budget using their gross pay, only to feel short every month. Learning to work with your net pay creates more accurate financial planning and keeps surprises at bay.