The IRS just announced the new 2026 tax brackets and inflation adjustments.
Each year, the IRS adjusts more than 60 tax provisions to prevent “bracket creep” — when inflation pushes people into higher tax brackets without an actual increase in income.
For 2026, tax thresholds will rise about 2.7% on average. The One Big Beautiful Bill Act (OBBBA) made many 2017 tax cuts permanent, and slightly boosted the lower brackets by 4%.
- Top tax rate: 37% (for income above $640,600 single / $768,700 joint)
- Standard deduction: $16,100 single / $32,200 joint
- Child tax credit: $2,200 per child
- Gift exclusion: $19,000 per person
- Estate tax exemption: $15 million per person
These updates will apply when filing your 2026 taxes in early 2027.
Tax Brackets Breakdown (Single Filers, Married Filing, Heads of Household)
| Tax Rate | Single Filers | Married Filing Jointly | Heads of Households |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,776 to $256,200 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,600 |
| 37% | $640,601 or more | $768,701 or more | $640,601 or more |
Summary
The IRS’s 2026 inflation adjustments bring modest increases to tax brackets, deductions, and credits—averaging about 2.7%. Thanks to the One Big Beautiful Bill Act, most of the 2017 tax cuts are now permanent, including lower tax rates and the expanded Child Tax Credit. These updates aim to prevent “bracket creep” and ensure taxpayers aren’t penalized by inflation when filing their 2026 returns in early 2027.
