IRS Raises Tax Brackets, Standard Deductions For 2026 Filings

The Internal Revenue Service (IRS) announced new federal income tax brackets and standard deduction increases for the 2026 tax year, affecting returns filed in 2027.

The IRS just released its 2026 tax brackets despite the government shutdown https://t.co/PZmf3aNj9x

— MarketWatch (@MarketWatch) October 9, 2025

The top marginal rate of 37% will now apply to individuals earning over $640,600 and married couples filing jointly with income above $768,700, the agency said Thursday.

The IRS also adjusted several key provisions, including long-term capital gains brackets, estate and gift tax exemptions, and eligibility thresholds for the earned income tax credit.

The standard deduction will rise to $32,200 for married couples filing jointly and $16,100 for single filers, both modest increases from 2025 levels.

IRS announces new federal income tax brackets for 2026 https://t.co/lWIAnFEALj

— CNBC (@CNBC) October 9, 2025

These inflation-driven adjustments aim to prevent taxpayers from being pushed into higher brackets as wages rise.

The announcement followed news that nearly half of IRS employees will be furloughed due to the ongoing government shutdown.

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