By PSA NEWSROOM STAFF
IRS inflation adjustments could mean lower taxes for many filers
As the 2026 tax year approaches — returns filed in 2027 — the IRS has updated federal income tax brackets and standard deduction amounts to reflect inflation.
While tax rates themselves remain unchanged, higher income thresholds mean more earnings may be taxed at lower rates, offering potential relief for millions of Americans.
How Tax Brackets Work
The federal tax system uses seven marginal tax brackets, meaning only the portion of income within each bracket is taxed at that rate — not your entire paycheck.
This structure helps prevent taxpayers from paying more simply because their income rises slightly.
2026 Federal Income Tax Brackets
Single Filers
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- 10%: $0 – $12,400
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- 12%: $12,401 – $50,400
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- 22%: $50,401 – $105,700
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- 24%: $105,701 – $201,775
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- 32%: $201,776 – $256,225
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- 35%: $256,226 – $640,600
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- 37%: Over $640,600
Married Filing Jointly
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- 10%: $0 – $24,800
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- 12%: $24,801 – $100,800
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- 22%: $100,801 – $211,400
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- 24%: $211,401 – $403,550
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- 32%: $403,551 – $512,450
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- 35%: $512,451 – $768,700
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- 37%: Over $768,700
Head of Household
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- 10%: $0 – $17,700
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- 12%: $17,701 – $67,450
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- 22%: $67,451 – $105,700
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- 24%: $105,701 – $201,775
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- 32%: $201,776 – $256,200
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- 35%: $256,201 – $640,600
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- 37%: Over $640,600
Standard Deduction Is Increasing
The standard deduction — the amount subtracted from income before taxes are calculated — is also rising for 2026:
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- Single filers: $16,100
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- Married filing jointly: $32,200
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- Head of household: $24,150
Taxpayers who are 65 or older or legally blind may qualify for an additional deduction.
Why It Matters
For many households, these adjustments mean more income protected from federal taxes and a lower effective tax rate.
Tax professionals recommend reviewing income and withholdings early to avoid surprises when filing season arrives.
