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ReutersIRS tax brackets 2026 IRS tax brackets 2026: The IRS has released the 2026 tax brackets, along with new standard deductions and other inflation-related updates. While the marginal tax rates haven’t changed, the updated income thresholds could slightly impact how much high earners owe next year, as per a report.2026 tax brackets adjusted for inflationThe new 2026 tax brackets adjust income thresholds upward to account for inflation, meaning more income will fall into lower tax brackets compared to 2025, as per The Motley Fool report. Standard deduction rises for singles and couplesThe standard deduction is also increasing, from 15,750 to 16,100 for single filers, and from 31,500 to 32,200 for married couples filing jointly, as per The Motley Fool report.ALSO READ: Qualcomm unveils new AI chips to compete with Nvidia, AMD - key features for you to take noteInflation adjustments provide modest reliefExample, a married couple filing jointly with an adjusted gross income (AGI) of 1,000,000 and if they take the standard deduction:Live EventsIn 2025, their taxable income would be 968,500, resulting in a 282,407.50 tax bill, as per The Motley Fool report. In 2026, their taxable income would fall slightly to 967,800, leading to a 280,250.50 tax bill, as per The Motley Fool report.That’s a 2,157 decrease, showing how inflation adjustments can reduce overall taxes even when rates stay the same, as per The Motley Fool report.The example assumes income stays flat between 2025 and 2026. If income rises, so will the tax bill. But if all else remains equal, the new brackets mean a bit more breathing room for top earners, as per The Motley Fool report.ALSO READ: Lululemon stock rises after it partners with NFL to launch apparels for all 32 teamsOther factors that affect taxesTax brackets only tell part of the story because deductions, tax credits, and retirement contribution limits, many of which are also rising, will continue to shape how much high earners owe, as per The Motley Fool report.FAQsWhat changed in the 2026 tax brackets?Income thresholds were increased for inflation, but the tax rates stayed the same, as per The Motley Fool report.How does the standard deduction change in 2026?It rises to 16,100 for single filers and 32,200 for married couples filing jointly, as per The Motley Fool report.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onhow 2026 tax brackets affect top earnersIRS tax brackets 2026standard deduction 2026what high earners need to know about 2026 taxes2026 tax bracket changes explainedIRS 2026 tax brackets2026 taxable income changesIRS inflation adjustments 20262026 federal income tax brackets (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onhow 2026 tax brackets affect top earnersIRS tax brackets 2026standard deduction 2026what high earners need to know about 2026 taxes2026 tax bracket changes explainedIRS 2026 tax brackets2026 taxable income changesIRS inflation adjustments 20262026 federal income tax brackets(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless
