IRS Tax Bracket Changes 2026 – New Rates, Deductions & Changes Explained

The IRS has officially released official Tax Bracket Changes 2026, in which several updates have been made in the federal income Tax bracket, standard deduction, and selected tax credits. These changes are announced under the Revenue Procedure 2025-32 and are the part of IRS routine tax adjustment for inflation.

Recent laws have made the current tax system permanent and slightly increased deductions and tax brackets. These IRS Tax bracket changes help ensure that people do not pay more tax just because their income increases due to inflation, not actual growth.

IRS Tax Bracket Changes 2026

For 2026, the IRS continues to apply seven progressive federal income tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%). All income limits have increased compared to 2025, which allow taxpayers to earn more before moving into higher tax brackets.

For example, single filers pay the 10% tax rate on income up to $12400, while the highest 37% rate applies only to income above $640,600. Married couples filing jointly have wider tax brackets, with the top rate starting above $768,700.

2026 IRS Tax Brackets Overview

Department	Internal Revenue Service
Program Name	Federal Income Tax Bracket Adjustments 2026
Country	USA
Year	2026
Tax Rates	10% to 37%
Capital Gains Tax	0%, 15%, 20% (limits increased)
Seniors Extra Deduction	$6,000 for 65+
Beneficiaries	All US taxpayers, seniors, low income families
Category	News
Official Website	https://www.irs.gov/

Standard Tax Deduction Increases

• The standard deduction increases again in 2026, which gives direct tax relief to people who do not itemize deductions.
• Single filers and married individuals filing separately can claim $16100, while married couples filing jointly can claim $32200.
• Head of Household filers receive $24150, which lowers taxable income automatically and makes the tax filing process much easier.

Additional Tax Relief for Seniors

Taxpayers aged 65 and older receive extra benefits under the 2026 tax rules. They qualify for an additional standard deduction, including a new $6000 deduction for each eligible senior.

This benefit helps pay for higher living and medical costs in retirement, but it slowly decreases for higher earners, starting at $75000 for single filers and $150000 for married couples filing jointly.

Long-Term Capital Gains Tax Adjustments

Long-term capital gains tax rates remain unchanged at 0%, 15%, and 20% in 2026, but the income limit for each rate increases according to the current inflation rates.

This means taxpayers can earn more investment income before being taxed at a higher capital gains rate. These changes are especially helpful for retirees and long-term investors who depend on selling assets for income.

Alternative Minimum Tax Changes

• The Alternative Minimum Tax (AMT) exemption increases in 2026, which reduces the chance that middle income taxpayers will be affected.
• Single filers and Heads of Household receive an exemption of $90100.
• Married couples filing jointly receive a higher exemption of $140200.
• The exemption starts to phase out only at higher income levels, so the AMT mainly applies to higher earners.

Earned Income Tax Credit Updates

The Earned Income Tax Credit (EITC) has been constantly supporting lower income individuals and vulnerable US citizens in 2026. The maximum credit amount increases slightly, with larger benefits for families with children.

Workers with no qualifying children can receive up to $664, while families with 3 or more children can receive up to $8231. Income limits and phaseout rules will be adjusted according to the latest inflation rates.

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