There are some new changes when it comes to IRS 2026 and they will affect the way in which people will pay taxes, especially income brackets, deductions, and some important credits. Even though this issue might sound very complex to understand, it’s actually an adjustment the government makes every year so that inflation doesn’t affect a lot taxpayers. So, let’s find out more about this change that matters to many people.
Why does the IRS make changes every year?
Well, the IRS adjusts amounts related to taxes so that people don’t pay more just because prices increased. This means that if inflation increased, taxes wouldn’t automatically rise for taxpayers. This is why new limits, new amounts, and new tax brackets are announced regularly.
All these changes we mentioned will take effect for the 2026 tax year and will appear in the tax returns that will be filed in 2027.
New tax brackets
Tax brackets are income ranges that determine how much percentage of taxes someone pays. The U.S. has a progressive system, which means that not all your income is taxed at the same percentage. Instead, each part of your earnings falls into different brackets.
The IRS has seven income ranges: 10%, 12%, 22%, 24%, 32%, 35% y 37%. These numbers represent the tax percentage applied according to the money you earn. Now, let’s explain each income range to make it more understandable.
IRS tax brackets changes for individuals in 2026
For people who file taxes individually, the tax ranges are the following:
- 10% on the first $12,400 earned in 2026.
- 12% on income from $12,401 to $50,400.
- 22% on income from $50,401 to $105,700.
- 24% on income from $105,701 to $201,775.
- 32% on income from $201,776 to $256,225.
- 35% on income from $256,226 to $640,600.
- 37% on income above $640,600.
Basically, if you earn money, the first parts of their income are taxed at lower percentages, and only the higher portions are taxed at higher percentages. This makes taxes fairer for everyone.
What about for those who file taxes together?
Married couples who file taxes together have their own income ranges. In their case, the amounts are almost twice than for individuals because they are based on the combined earnings of both partners. So, the income ranges for couples are:
- 10% on the first $24,800 earned together.
- 12% on income from $24,801 to $100,800.
- 22% on income from $100,801 to $211,400.
- 24% on income from $211,401 to $403,550.
- 32% on income from $403,551 to $512,450.
- 35% on income from $512,451 to $768,700.
- 37% on income above $768,700.
These brackets are also designed so that couples pay taxes in a way that matches what they earn as a household.
Increased standard deduction
We also must talk about the standard deduction, which is the amount subtracted from a couple’s income before calculating taxes. So, they will not pay taxes on that amount, which gives them financial relief. But how much will this standard deduction increase? For married couples it increases up to $32,200.
Earned Income Tax Credit increase
Wait! There’s another change we need to mention. It’s the Earned Income Tax Credit which will reach up to $8,231. This credit is thought for helping workers with low or moderate income, it’s a way to support those who work but need additional aid to balance their economy.
So…
Although these concepts can seem complicated, the most important thing to understand is that each bracket and each deduction helps make the tax system more balanced for everyone. Remember that these adjustments will be reflected in the tax returns that will be filed in 2027.