"As the housing market shifts toward favoring buyers, there are significant factors at play that may impact first-time homebuyers positively. The anticipated inflation adjustments to the IRS tax brackets for 2026 could potentially provide buyers with more financial leverage, making homeownership more attainable."
"Expected inflation adjustments to the IRS tax brackets for 2026 may result in higher income thresholds and lower effective taxes for millions of earners, potentially easing the financial burden for prospective buyers. Understanding how tax brackets work, including marginal and effective tax rates, is crucial for buyers to grasp how inflation adjustments can impact their overall tax burden and purchasing power."
Seven major metros are now in a buyer's market, with 23 additional metros in a balanced state, increasing negotiating power for buyers. Expected inflation adjustments to the IRS tax brackets for 2026 may raise income thresholds and lower effective taxes for millions, reducing overall tax burdens. Understanding marginal and effective tax rates helps buyers see how bracket shifts affect purchasing power and monthly budgets. Inflation adjustments aim to prevent bracket creep and offset rising living costs, potentially freeing budget room for larger mortgage payments, down payments, or closing costs for first-time buyers.
Read at SFGATE
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