The IRS just released the income tax brackets and standard deductions for 2026. Like every year, these numbers shift upward to keep pace with inflation, a process meant to protect taxpayers from something called “bracket creep.” That’s when your paycheck grows, but it’s really just inflation at work, not an actual raise. Without these adjustments, you’d end up paying more in taxes without any real increase in buying power.
What’s Actually Changing
Next year, you’ll need to earn a bit more before you hit a higher tax bracket. Take someone filing as single with $50,000 in income. In 2025, that puts them in the 22% bracket. In 2026? They’ll be in the 12% bracket instead. It’s a meaningful difference.
The IRS uses something called the Chained Consumer Price Index to calculate these changes. It’s a slower-moving measure than the standard CPI, which means the adjustments tend to be more conservative. This approach has been the standard since the 2017 Tax Cuts and Jobs Act became law.
2026 Tax Brackets for Married Couples Filing Jointly
| Rate | 2025 Taxable Income | 2026 Taxable Income |
| 10% | $0 – $23,850 | $0 – $24,800 |
| 12% | $23,851 – $96,950 | $24,801 – $100,800 |
| 22% | $96,951 – $206,700 | $100,801 – $211,100 |
| 24% | $206,701 – $394,600 | $211,401 – $403,350 |
| 32% | $394,601 – $501,050 | $403,351 – $512,450 |
| 35% | $501,051 – $751,600 | $512,451 – $768,700 |
| 37% | $751,601 and up | $768,701 and up |
2026 Tax Brackets for Single Filers
| Rate | 2025 Taxable Income | 2026 Taxable Income |
| 10% | $0 – $11,925 | $0 – $12,400 |
| 12% | $11,926 – $48,475 | $12,401 – $50,400 |
| 22% | $48,476 – $103,350 | $50,401 – $105,700 |
| 24% | $103,351 – $197,300 | $105,701 – $201,775 |
| 32% | $394,601 – $501,050 | $403,351 – $512,450 |
| 35% | $250,526 – $626,350 | $257,226 – $640,600 |
| 37% | $626,351 and up | $640,601 and up |
Standard Deduction Amounts for 2026
- Married filing jointly: $32,200
- Head of household: $24,150
- Single or married filing separately: $16,100
There’s also a provision for seniors worth noting. Under the One Big Beautiful Bill Act, people 65 and older may qualify for an additional deduction of up to $6,000 through 2028. This applies if your adjusted gross income is $75,000 or less as a single filer, or $150,000 or less filing jointly.
Other Notable Changes
Earned Income Tax Credit: Families with three or more children can claim up to $8,231 in 2026, up from $8,046 this year.
Estate Tax Exemption: The threshold climbs to $15 million, an increase from roughly $14 million in 2025.
Health FSA Contributions: You can now set aside up to $3,400 in a flexible spending account for medical expenses—that’s $100 more than before.
A Quick Refresher
There’s a common misconception that if you land in the 22% bracket, you’re paying 22% on everything you earn. That’s not how it works. The U.S. system is progressive, which means different portions of your income are taxed at different rates. Here’s an example: Say you’re single and have $50,000 in taxable income in 2026. You’ll pay 10% on your first $12,400, then 12% on the remaining $37,600. Only the dollars that fall into each bracket get taxed at that rate, not your entire income.
The Bigger Picture
Back in July, the One Big Beautiful Bill Act made most of the 2017 tax cuts permanent. That legislation affects how much taxpayers will owe going forward, and recent analyses suggest the average filer might see modest savings in 2026. The size of that benefit varies quite a bit depending on income level—higher earners tend to see more in absolute dollars saved.
The bottom line is this: the 2026 updates reflect ongoing adjustments meant to keep your tax obligations in line with what you’re actually earning, not just what inflation makes it look like you’re earning.
As always, everyone’s situation is different. Talking through these changes with your advisor can help you understand how they fit into your broader financial picture.
At Connect Wealth, we stay on top of shifts like these because they matter to the bigger financial picture. Our role is to help clients make sense of what’s changing and plan accordingly, so you can focus on what matters most to you.
This overview reflects a general summary of some 2026 tax changes. We make no representations or warranties regarding the accuracy or completeness of the information. It is not intended to provide tax, legal, or investment advice. Please consult with a qualified tax professional regarding your individual circumstances.