The IRS announced new 2026 federal income tax brackets

The Internal Revenue Service on Thursday, October 9, released updated federal income tax brackets and standard deduction amounts for tax year 2026. The changes, which determine how much Americans will owe in federal income taxes, will apply to returns filed in early 2027.

The standard deduction will rise by 2.2% across all filing categories in 2026 compared to the prior year. For single filers and married individuals filing separately, the deduction increases from $15,750 in 2025 to $16,100. Married couples filing jointly and surviving spouses will see their standard deduction climb from $31,500 to $32,200. For heads of household, the deduction goes from $23,625 to $24,150.

The IRS also raised income thresholds for all federal tax brackets. For 2026, the top rate remains 37% for individuals earning more than $640,600, and for married couples filing jointly earning above $768,700. The lowest bracket is set at 10% for individuals with taxable income of $12,400 or less, and $24,800 for married couples filing jointly. Long-term capital gains brackets and other thresholds were also adjusted upward.

The updated figures come as the agency continues to manage disruptions from the federal government shutdown, which has already led to furloughs for nearly half of its workforce.