"The IRS's new 2026 tax brackets are starting to affect paychecks now and will apply to returns filed in 2027. 2026 income tax brackets The big picture: Each year, the Internal Revenue Service adjusts more than 60 tax provisions to prevent \" bracket creep,\" which happens when inflation pushes workers into higher tax brackets without a real increase in buying power."
"State of play: The IRS revised the standard deductions for the 2025 tax year under OBBBA - changes that apply to returns filed in 2026. The updated standard deductions are: $31,500 for married couples filing jointly (up from $30,000) $15,750 for single filers (up from $15,000) $23,625 for heads of household (up from $22,500) Between the lines: Normally, the IRS adjusts the standard deduction once a year to keep pace with inflation."
Tax breaks created by last year's law, including changes affecting Social Security income and elimination of federal income tax on tips, can be claimed on tax returns filed in 2026. The IRS's 2026 tax brackets are affecting paychecks and will apply to returns filed in 2027. The IRS adjusts more than 60 tax provisions yearly to prevent bracket creep. Standard deductions for the 2025 tax year increased to $31,500 (married filing jointly), $15,750 (single), and $23,625 (head of household) and were made permanent. The IRS released 2026 withholding tables to raise take-home pay. A temporary $6,000 deduction for taxpayers 65+ on Social Security income applies through 2028; married couples can claim up to $12,000.
Read at Axios
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