1 of 2 | U.S. House Speaker Mike Johnson’s, R-LA, signature seen in July on the “Big Beautiful Bill” at the U.S. Capitol in Washington, D.C. The GOP-controlled House passed the U.S. President Donald Trump’s tax and spending bill, which increased spending on defense and immigration enforcement, temporarily cut taxes on tips, cut funding for Medicaid, food assistance for the poor, clean energy and raised the U.S. debit limit by $5 trillion. File Photo by Bonnie Cash/UPI | License Photo
The Internal Revenue Service on Thursday unveiled its 2026 federal income tax brackets and deductions for the new tax year.
The IRS raised its income threshold for each tax bracket for the 2026 tax year in returns to be filed in 2027, according to U.S. revenue officials.
“The tax year 2026 adjustments described generally apply to tax returns filed in 2027,” the Internal Revenue Service stated in a release.
Officials said higher federal tax brackets for 2026 were to adjust for rising inflation.
Beginning next year, a single filer can claim $16,100 in a bump from the previous $15,700.
The agency increased numbers for other provisions, among others: long-term capital gains, earned income tax credit eligibility and estate and gift tax exemptions.
It said the top 37% tax rate for 2026 applied to taxpayers with a taxable income over $640,000 and joint filings for married couples earning more than $768,000.
But a standard deduction next year will also go up to $32,200 for married couples in joint filings, which was up from 2025’s $31,500.
The revenue agency’s tax bracket announcement arrived a day after the IRS revealed it will furlough roughly half its workforce to include some 750,000 furloughed government workers as a result of the ongoing U.S. government shutdown.
