2026 Tax Brackets Updated: How Inflation Adjustments Affect Your Bill

(UNITED STATES) The IRS has released new federal income tax brackets for the 2026 tax year, confirming inflation adjustments that will apply to returns filed in 2027. The agency’s update raises the income thresholds across all brackets and lifts the standard deduction, changes that could reduce the share of income taxed at higher rates for many households.

For wage earners, retirees, and new residents on work visas who file U.S. taxes, these adjustments matter because paychecks, withholding choices, and refunds may shift in the months ahead. According to analysis by VisaVerge.com, the move continues the IRS practice of annual inflation indexing to keep the tax system aligned with price changes.

What’s unchanged and what moves

• The 2026 tax brackets keep the same seven marginal rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
• What changes are the dollar ranges that fall under each rate and the standard deduction amounts.
• The IRS frames these as routine inflation adjustments rather than rate cuts. Because brackets move upward, some taxpayers could see more of their income taxed at lower rates even if their pay stays roughly the same.

Below are the official figures for both 2025 and the newly released 2026 tax year to help compare how expected taxable income could fall across brackets next year.

Official bracket figures — Single filers

• 2025 tax brackets:
  • 10%: $0 to $11,925
  • 12%: $11,926 to $48,475
  • 22%: $48,476 to $103,350
  • 24%: $103,351 to $197,300
  • 32%: $197,301 to $250,525
  • 35%: $250,526 to $626,350
  • 37%: $626,351 and above
• 2026 tax brackets:
  • 10%: $0 to $12,400
  • 12%: $12,401 to $50,400
  • 22%: $50,401 to $105,700
  • 24%: $105,701 to $201,775
  • 32%: $201,776 to $256,225
  • 35%: $256,226 to $384,350
  • 37%: $384,351 and above

Official bracket figures — Married filing jointly

• 2025 tax brackets:
  • 10%: $0 to $23,850
  • 12%: $23,851 to $96,950
  • 22%: $96,951 to $206,700
  • 24%: $206,701 to $394,600
  • 32%: $394,601 to $501,050
  • 35%: $501,051 to $751,600
  • 37%: $751,601 and above
• 2026 tax brackets:
  • 10%: $0 to $24,800
  • 12%: $24,801 to $100,800
  • 22%: $100,801 to $211,400
  • 24%: $211,401 to $403,550
  • 32%: $403,551 to $512,450
  • 35%: $512,451 to $768,700
  • 37%: $768,701 and above

Standard deductions

• 2025:
  • Single or married filing separately: $15,750
  • Married filing jointly: $31,500
  • Head of household: $23,625
• 2026:
  • Single or married filing separately: $16,100
  • Married filing jointly: $32,200
  • Head of household: $24,150

These shifts mainly reflect inflation indexing, which helps prevent “bracket creep”—where cost-of-living pay raises push taxpayers into higher brackets even if buying power hasn’t improved.

With the 2026 thresholds higher than in 2025, taxpayers whose income grows more slowly than inflation might pay a smaller share of their income at higher rates than they would have under the prior-year thresholds.

How households may be affected

• A single filer near a bracket threshold may see a difference of a few hundred dollars in tax owed because more dollars fall into a lower rate band.
• For joint filers, the effect compounds when both spouses have income.
• The higher standard deduction may reduce taxable income further for those who do not itemize.

Impact on workers, families, and new U.S. residents

For people who moved to the United States 🇺🇸 recently for work or family reasons and will file a federal return, the new brackets and standard deductions shape how much income tax is withheld and how much is due at filing.

• Many newcomers on temporary visas participate in the U.S. tax system if they receive U.S.-source wages.
• The math behind tax brackets remains straightforward: you pay each rate only on the slice of income that falls within that bracket. A higher bracket does not apply to every dollar you earn.

Examples and practical effects:
– A single filer previously in the 24% band in 2025 whose 2026 pay rises modestly might remain in the 24% band but have more income taxed at 22% because thresholds expanded.
– Claiming the standard deduction will further reduce taxable income — rising from $15,750 (2025) to $16,100 (2026) for single filers.
– For two-earner couples, the joint filer brackets and the $32,200 standard deduction in 2026 can reduce tax due if itemized deductions do not exceed that amount.

Specific groups to watch:
– Workers with multiple jobs, midyear employer changes, or bonuses should review withholding once payroll tables update.
– Self-employed and gig workers will feel changes through quarterly estimated payments — shifts between the 22% and 24% bands can affect total estimated tax.
– Retirees drawing pensions or IRA distributions may see some withdrawals taxed at lower rates due to higher thresholds and the larger standard deduction.

Planning notes for the 2026 tax year

1. Check where your expected 2026 income falls within the new brackets shown above. Even modest shifts can affect total tax by moving dollars into lower rates.
2. If you claim the standard deduction, note the increases:
   • Single: $16,100
   • Married filing jointly: $32,200
   • Head of household: $24,150
3. Review payroll withholding early in 2026, especially if you:
   • Changed jobs
   • Added a second job
   • Expect a year-end bonus
4. New filers: remember the IRS applies marginal rates in layers—only the income within each band is taxed at that band’s rate.
5. If planning big financial moves (selling stock, harvesting losses, converting retirement funds), map those steps against the 2026 brackets to avoid unintentionally pushing income into a higher band.

Practical actions and employer effects

• Employers and payroll teams will update systems to reflect the new thresholds. Workers may see small changes in net pay once updates take effect.
• People who send money abroad or support relatives may feel even small take-home pay shifts in household budgets.
• Tax software and preparers will incorporate these numbers when the 2026 year begins.

The IRS notes these bracket adjustments are routine; the tax rates themselves do not change for 2026. Personal outcomes will depend on income mix, deductions, credits, and filing choices.

For full federal details and future notices, see the IRS. Official instructions and notices from the IRS remain the primary source for federal rules and updates on the 2026 tax year.

Key takeaway: compare your expected 2026 income to the updated ranges, check your withholding, and note the higher standard deduction. These steps help many people avoid surprises when they file 2026 returns in 2027.