IRS announces new 2026 income tax brackets and higher standard deductions

The Internal Revenue Service (IRS) has unveiled updated income tax brackets and standard deduction rates for the 2026 tax year, which will apply to returns filed in 2027. The changes, announced on Thursday, are designed to prevent “bracket creep,” a situation where rising wages push taxpayers into higher tax brackets even without a real increase in their purchasing power.

Inflation adjustment brings relief

Thanks to these adjustments, Americans will need to earn more before moving into higher tax brackets. For example, a single filer earning $50,000 will now fall into the 12% bracket in 2026, compared to being placed in the 22% bracket in 2025. This shift provides welcome relief for middle-income earners at a time when inflation has strained household budgets.

Standard deductions raised

The IRS has also increased standard deductions across all filing categories for the 2026 tax year:

Married couples filing jointly: $32,200

Heads of households: $24,150

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Single filers or married filing separately: $16,100

These higher deductions will reduce taxable income, allowing more Americans to retain a larger share of their earnings.

Extra deductions for seniors

In a significant development, seniors will receive added tax relief. Under the One Big Beautiful Bill Act, taxpayers aged 65 and older will be eligible for an additional deduction of up to $6,000. This benefit applies to single filers with incomes up to $75,000 and joint filers with incomes up to $150,000. The provision will remain in effect through 2028, offering consistent support to older taxpayers.

Tax deadlines remain unchanged

Despite an ongoing government shutdown, the IRS confirmed that all tax deadlines will remain unaffected. Taxpayers, including those with October 15 extensions, must still file and pay their taxes as scheduled.

Updated tax brackets for 2026

Here are the revised tax brackets:

Single filers

10%: $0–$12,400

12%: $12,401–$50,400

22%: $50,401–$105,700

24%: $105,701–$201,775

32%: $201,776–$256,225

35%: $256,226–$640,600

37%: $640,601 and above

Married filing jointly

10%: $0–$24,800

12%: $24,801–$100,800

22%: $100,801–$211,100

24%: $211,401–$403,550

32%: $403,551–$512,450

35%: $512,451–$768,700

37%: $768,701 and above

IRS operations during shutdown

The IRS also confirmed that due to funding lapses, it will implement an agency-wide furlough starting October 8. Only about 39,870 employees — roughly 53.6% of its workforce — will remain active to handle core filing and payment operations. It remains unclear which departments will continue functioning during the shutdown.

The updates signal meaningful tax relief for many households, especially middle-income earners and seniors, while ensuring deadlines remain intact despite federal disruptions.