Starting in 2026, the IRS is adjusting tax brackets and deductions again — and that means your take-home pay and tax bill could look a little different.

Even if you don’t love talking about taxes, these changes are worth knowing. A few small updates to income brackets and the standard deduction can make a big difference in how much you owe (or get back) next April.

Why the Changes Are Happening

Each year, the IRS adjusts income tax brackets to keep up with inflation — basically, to prevent people from getting pushed into higher tax brackets just because of cost-of-living increases.

But this year’s update is a little bigger than usual because it also reflects new rules under the recently passed One Big Beautiful Bill, which reshaped several parts of the tax code.

The New 2026 Tax Brackets

Here’s what the brackets will look like for 2026 (these are the income ranges that determine what percentage of your income gets taxed at each level):

(Source: IRS.gov, 2026 Tax Inflation Adjustments)

You can think of this like a ladder — only the income within each step gets taxed at that rate. Most people’s average tax rate ends up being much lower than the highest rate they fall into.

The Standard Deduction Is Going Up

Good news: before the IRS even applies those brackets, you get to subtract a standard deduction — a fixed amount of income that isn’t taxed at all.

For 2026, the standard deduction will rise to:

$32,200 for married couples filing jointly
$16,100 for single filers
$24,150 for heads of household

That means a married couple can earn $32,200 before any federal income tax is owed.

What It Means for You

For most families, this is a positive change. The brackets are getting a little wider, and the deduction is higher — meaning a slightly smaller portion of your income will be taxed.

But if your income has gone up quite a bit in the past few years, it’s still possible to creep into a higher bracket. That’s why it’s smart to review your tax situation now instead of waiting until filing time.

Here’s how it might play out:

Example: A couple earning $120,000 in 2025 and $130,000 in 2026 might still stay in the 22% bracket — even though their income rose — because the bracket itself expanded.
Example: A retiree with $90,000 of income might owe slightly less overall because of the higher deduction and bracket shift.

Simple Tax Planning Moves to Consider

Even if you’re not a “tax strategy” person, a few simple steps can help:

Check your withholdings: If your income or deductions change, your paycheck might not withhold the right amount.
Plan Roth conversions carefully: With slightly higher brackets, it might make sense to convert part of a traditional IRA before the year ends.
Bundle deductions: If you itemize (charity, medical, property taxes), grouping them in one year can help maximize your benefit.

These small adjustments can prevent surprises come tax time — and keep more of your money working for you.

Final Thoughts

The 2026 tax updates aren’t dramatic, but they’re still meaningful. Most households will see slightly more breathing room, but it’s always a good idea to review your personal situation.

As we get closer to 2026, we’ll keep an eye on any additional tweaks or proposals that could impact how much you owe.

Disclosure: This article is for educational purposes only and is not intended as tax or investment advice. Tax laws are subject to change, and individual situations vary. Always consult with a qualified tax professional before making any decisions.

What’s Changing With Tax Brackets in 2026