New income tax brackets announced: 2026 standard deduction increases, rates

The Internal Revenue Service has announced new tax inflation rates, standard deductions and new federal income tax brackets for 2026 — and the adjustments may surprise you.

While the tax rate themselves will remain unchanged from 2025, standard deduction shows a slight increase — meaning people can earn more money before being bumped into a higher bracket.

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Current tax rates range from 10% for the lowest income learners to 37% for the highest earners.

However, tax brackets will rise by about 4% for lower-income earners and approximately 2% for higher earners, according CNBC .

According to the IRS, the "tax items for tax year 2026 of greatest interest to most taxpayer," is the standard deduction increases.

The standard tax deduction refers to the set dollar amount the IRS lets you subtract from your income before calculating how much tax you owe.

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In other words, it reduces your taxable income, which means you pay taxes on a smaller amount.

People care because changes in the standard deduction directly affect how much of their income gets taxed.

For the 2026 tax year, the standard deduction will increase to $32,200 for married couples filing jointly, $16,100 for single filers and married individuals filing separately, and $24,150 for heads of households.

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For comparison, in 2025 the standard deduction is $31,500 for married couples filing jointly, $15,750 for single filers and married individuals filing separately, and $23,625 for heads of households.

Changes will apply to 2026 taxes filed in 2027 and are as follows:

New single filer tax brackets

• 37% for incomes over $640,600, up from $626,350

• 35% for incomes over $256,225, up from $250,525

• 32% for incomes over $201,775, up from $197,300

• 24% for incomes over $105,700, up from $103,350

• 22% for incomes over $50,400, up from $48,475

• 12% for incomes over $12,400, up from $11,925

• 10% for incomes $12,400 or less, up from $11,925

New married filing jointly

• 37% for incomes over $768,700, up from $751,600

• 35% for incomes over $512,450, up from $501,050

• 32% for incomes over $403,550, up from $394,600

• 24% for incomes over $211,400, up from $206,700

• 22% for incomes over $100,800, up from $96,950

• 12% for incomes over $24,800, up from $23,850

• 10% for incomes $24,800 or less, up from $23,850

Standard deduction increases

• Single or married filing separately - $16,100, up from $15,570

• Married filing jointly - $32,200 up from $31,500

• Heads of households - $24,150 up from $23,625