The IRS released its annual inflation adjustments, and the standard deduction is climbing again.
For the 2026 tax year, the standard deduction rises to $16,100 for single filers and $32,200 for married couples filing jointly, up from $15,000 and $30,000.
Those numbers apply to returns most people will file in early 2027.
The seven tax brackets didn't change—they're still 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
What shifted are the income thresholds that determine which bracket applies to you.
Because brackets are marginal, only the dollars above each cutoff get taxed at the higher rate.
Moving into a new bracket never means your whole paycheck gets taxed at that rate.
Here's how the 2026 brackets shake out for single filers.
The 10% rate covers income up to $12,400, the 12% bracket runs to $50,400, and the 22% bracket tops out at $105,700.
For married couples filing jointly, the 10% bracket reaches $24,800, the 12% bracket goes to $100,800, and the 22% bracket ends at $211,400.
The practical effect is modest for most households.
An adjustment of a few hundred dollars in a bracket threshold might shave a small amount off your tax bill—or slightly increase your take-home pay if you're having taxes withheld from each check.
It's not a windfall, but it's real money, especially for workers whose raises barely kept pace with inflation.
One wrinkle worth knowing: the Tax Cuts and Jobs Act brackets are still in effect, but they're scheduled to expire after 2025 under current law.
Congress has been debating extensions, and the 2026 numbers assume the existing structure continues.
If lawmakers change course, the brackets you see here could look different by the time you file.
Check your withholding using the IRS Tax Withholding Estimator, especially if you got a raise, changed jobs, or had a life event like marriage or a new dependent.
Adjusting your W-4 mid-year can prevent an unpleasant surprise in April—or stop you from giving the government an interest-free loan all year.
Freelancers, gig workers, and anyone with side income should pay closer attention.
Bracket shifts matter more when you're making quarterly estimated payments and don't have an employer withholding on your behalf.
Setting aside a slightly larger percentage as income rises is a boring habit that pays off.
The bracket change won't transform anyone's finances overnight, which is exactly why it's easy to ignore.
But a few minutes with the IRS estimator and a fresh W-4 could mean a noticeably bigger refund—or a smaller tax bill—next spring.
Final Thoughts
That's a better return than most savings accounts are offering right now.