Taxo 2026 Tax Brackets and Standard Deduction: Complete Inflation Adjustment Guide
Data Notice: This article covers IRS inflation adjustments for tax year 2026, including changes from the One, Big, Beautiful Bill Act. These figures apply to the 2026 tax year (returns filed in early 2027). Verify all figures with official IRS publications.
2026 Tax Brackets and Standard Deduction: Complete Inflation Adjustment Guide
This article provides general tax education and is not a substitute for professional tax advice.
The IRS has released its annual inflation adjustments for tax year 2026, covering more than 60 tax provisions. Combined with the new deductions from the One, Big, Beautiful Bill Act, the 2026 tax landscape looks significantly different from 2025.
Here is every key number you need to know.
2026 Standard Deduction by Filing Status
2026 Standard Deduction
| Filing Status | 2026 Amount | Change from 2025 |
|---|---|---|
| Single | $16,100 | +$350 |
| Married Filing Jointly | $32,200 | +$700 |
| Head of Household | $24,150 | +$525 |
| Married Filing Separately | $16,100 | +$350 |
These amounts are in addition to the new OBBBA deductions. Taxpayers 65+ can claim the enhanced senior deduction ($6,000/$12,000) on top of the standard deduction — see our One Big Beautiful Bill deductions guide for details.
2026 Federal Income Tax Brackets
Single Filers
| Tax Rate | Taxable Income Range |
|---|---|
| 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% | Over $640,600 |
Married Filing Jointly
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 – $24,800 |
| 12% | $24,801 – $100,800 |
| 22% | $100,801 – $211,400 |
| 24% | $211,401 – $403,550 |
| 32% | $403,551 – $512,450 |
| 35% | $512,451 – $768,700 |
| 37% | Over $768,700 |
The seven marginal rates remain the same as in 2025 — only the income thresholds have shifted upward to reflect inflation.
Key Credits and Deductions
Earned Income Tax Credit
The maximum EITC for taxpayers with three or more qualifying children is $8,231 in 2026. Income thresholds and phase-out ranges have also been adjusted for inflation.
Adoption Credit
The maximum adoption credit is $17,670, with a refundable portion of up to $5,120.
Employer-Provided Childcare Credit
The OBBBA increased the maximum from $150,000 to $500,000 ($600,000 for eligible small businesses).
Foreign Earned Income Exclusion
The exclusion rises to $132,900 for 2026, up from $130,000 in 2025.
Retirement Plan Contribution Limits
| Plan Type | 2026 Limit | 2025 Limit |
|---|---|---|
| 401(k) / 403(b) / 457 elective deferrals | $23,500* | $23,500 |
| IRA (Traditional and Roth) | $7,000* | $7,000 |
| Catch-up (age 50+) | $7,500* | $7,500 |
| Super catch-up (ages 60-63) | $11,250 | $11,250 |
| SEP-IRA employer contribution | $70,000* | $70,000 |
*Figures pending final IRS confirmation for 2026; may adjust slightly with inflation.
The “super catch-up” provision allowing savers ages 60-63 to contribute up to $11,250 above the regular limit (for a total of $34,750) continues in 2026.
For more on retirement tax strategies, see our Self-Employment Tax Guide and how retirement contributions interact with IRS Schedule 1-A deductions.
Other Notable Adjustments
Health and Transportation
| Provision | 2026 Amount |
|---|---|
| Health FSA contribution limit | $3,400 |
| Qualified transportation fringe | $340/month |
| Medical Savings Account deductible (self-only) | $2,900–$4,400 |
Alternative Minimum Tax
| Filing Status | AMT Exemption |
|---|---|
| Single | $90,100 |
| Married Filing Jointly | $140,200 |
Annual Gift Exclusion
| Provision | 2026 Amount |
|---|---|
| Annual gift exclusion | $19,000 per recipient |
| Annual gift exclusion (non-citizen spouse) | $194,000 |
Estate Tax
The basic exclusion amount rises to $15,000,000 for estates of decedents who die during 2026, permanently set at this level by the OBBBA with future inflation indexing. For detailed planning strategies, see our Estate Tax Exemption $15 Million Guide.
How the Numbers Work Together: An Example
Consider a married couple filing jointly with $120,000 in combined W-2 income. One spouse earned $8,000 in tips and the other earned $5,000 in overtime premiums. They purchased a new U.S.-assembled car with a loan and paid $3,500 in interest.
| Item | Amount |
|---|---|
| Gross income | $120,000 |
| Standard deduction | ($32,200) |
| Tips deduction (Schedule 1-A) | ($8,000) |
| Overtime deduction (Schedule 1-A) | ($5,000) |
| Car loan interest deduction (Schedule 1-A) | ($3,500) |
| Taxable income | $71,300 |
Under the 2026 brackets for married filing jointly, this couple’s federal income tax would be approximately $8,041 — an effective rate of 6.7%.
Without the OBBBA deductions, their taxable income would be $87,800 and their tax would be approximately $11,671. The new deductions save this family roughly $3,630.
For a walkthrough of how to file Schedule 1-A, see our IRS Schedule 1-A Guide. For guidance on your overall filing, see How to File Taxes.
Sources
- IRS releases tax inflation adjustments for tax year 2026 — IRS — accessed March 26, 2026
- One, Big, Beautiful Bill provisions — IRS — accessed March 26, 2026
- 8 IRS changes that could impact your taxes in 2026 — Empower — accessed March 26, 2026
About This Article
Researched and written by the Taxo editorial team using official sources. This article is for informational purposes only and does not constitute professional advice.
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