2026 IRS Tax Brackets Explained: Why Your Paychecks Just Got Bigger
Breaking Tax News (January 17, 2026): Americans will see bigger paychecks in 2026 thanks to the IRS's largest inflation adjustments in years. With tax filing season starting January 26, here's everything you need to know about the new tax brackets and how they'll impact your wallet.
Historic Inflation Adjustments for 2026
The IRS has released Revenue Procedure 2025-32, detailing significant tax bracket adjustments to prevent "bracket creep"—where inflation pushes taxpayers into higher tax brackets without real income gains.
Key Numbers
Standard Deduction Increases:
- Single filers: $15,000 (up $400 from 2025)
- Married filing jointly: $30,000 (up $800 from 2025)
- Head of household: $22,500 (up $600 from 2025)
Tax Filing Season: Begins January 26, 2026, with April 15 deadline
These adjustments mean the average American household will keep approximately $600-$1,200 more this year, depending on income and filing status.
2026 Federal Tax Brackets: Complete Breakdown
The IRS maintains seven federal tax brackets with upward-adjusted income thresholds for 2026.
Single Filers
| Tax Rate | 2026 Income Range | 2025 Income Range | Increase |
|---|---|---|---|
| 10% | $0 – $11,925 | $0 – $11,600 | +$325 |
| 12% | $11,926 – $48,475 | $11,601 – $47,150 | +$1,325 |
| 22% | $48,476 – $103,350 | $47,151 – $100,525 | +$2,825 |
| 24% | $103,351 – $197,300 | $100,526 – $191,950 | +$5,350 |
| 32% | $197,301 – $250,525 | $191,951 – $243,725 | +$6,800 |
| 35% | $250,526 – $626,350 | $243,726 – $609,350 | +$17,000 |
| 37% | Over $626,350 | Over $609,350 | +$17,000 |
Married Filing Jointly
| Tax Rate | 2026 Income Range | 2025 Income Range | Increase |
|---|---|---|---|
| 10% | $0 – $23,850 | $0 – $23,200 | +$650 |
| 12% | $23,851 – $96,950 | $23,201 – $94,300 | +$2,650 |
| 22% | $96,951 – $206,700 | $94,301 – $201,050 | +$5,650 |
| 24% | $206,701 – $394,600 | $201,051 – $383,900 | +$10,700 |
| 32% | $394,601 – $501,050 | $383,901 – $487,450 | +$13,600 |
| 35% | $501,051 – $751,600 | $487,451 – $731,200 | +$20,400 |
| 37% | Over $751,600 | Over $731,200 | +$20,400 |
Head of Household
| Tax Rate | 2026 Income Range | 2025 Income Range | Increase |
|---|---|---|---|
| 10% | $0 – $17,000 | $0 – $16,550 | +$450 |
| 12% | $17,001 – $64,850 | $16,551 – $63,100 | +$1,750 |
| 22% | $64,851 – $103,350 | $63,101 – $100,500 | +$2,850 |
| 24% | $103,351 – $197,300 | $100,501 – $191,950 | +$5,350 |
| 32% | $197,301 – $250,500 | $191,951 – $243,700 | +$6,800 |
| 35% | $250,501 – $626,350 | $243,701 – $609,350 | +$17,000 |
| 37% | Over $626,350 | Over $609,350 | +$17,000 |
Source: IRS Revenue Procedure 2025-32 (PDF)
What This Means for Your Paycheck
Real-World Examples
Single Filer Earning $60,000:
- 2025 taxes: $8,290
- 2026 taxes: $7,965
- Annual savings: $325
Married Couple Earning $120,000:
- 2025 taxes: $13,870
- 2026 taxes: $13,220
- Annual savings: $650
Head of Household Earning $80,000:
- 2025 taxes: $10,545
- 2026 taxes: $10,120
- Annual savings: $425
These savings appear gradually in paychecks as employers adjust withholding tables, with full benefits realized when filing 2026 tax returns in early 2027.
Beyond Brackets: Other Major Tax Changes
Tax Credits and Retirement Limits
Earned Income Tax Credit (EITC): Maximum credit reaches $8,046 for families with 3+ children (up from $7,830), with income phase-out at $66,819 for married filers.
Child Tax Credit: $2,000 per qualifying child, with $1,800 refundable portion (up from $1,700). Phase-out begins at $400,000 (married) or $200,000 (single).
401(k) and IRA Limits: Retirement savers can contribute $23,500 to 401(k) plans (up from $23,000), or $7,000 to IRAs (up from $6,500). Workers age 50+ get additional catch-up contributions.
Health Savings Accounts (HSA): Contribute $4,300 for individual coverage or $8,550 for family coverage—both increased from 2025 limits.
New Tax Laws: "One Big Beautiful Bill" Impact
Major new tax policies taking effect in 2026:
No Tax on Tips: Tipped workers can exclude tip income from federal taxation—a major benefit for service industry workers.
No Tax on Overtime: Overtime wages are tax-exempt for hourly workers, making overtime shifts more lucrative.
Trump Accounts: New tax-advantaged savings accounts for American children through the Working Families Tax Cuts program.
100% Bonus Depreciation: Forbes reports this tax break has returned, allowing businesses to immediately deduct full equipment costs.
Estate and Gift Tax Changes
Estate Tax Exemption: $13.99 million per individual ($27.98 million for married couples), up from $13.61 million.
Annual Gift Tax Exclusion: $19,000 per recipient (up from $18,000).
How to Maximize Your 2026 Tax Savings
Take these actions before April 15 to optimize your tax situation:
Update W-4 withholding using the IRS Tax Withholding Estimator to adjust paychecks immediately.
Max retirement contributions by taking advantage of higher 401(k) ($23,500) and IRA ($7,000) limits.
File early to avoid refund delays and protect against identity theft. CNBC reports that early filing provides the best refund timeline.
Tax Scams to Watch Out For
As tax season opens, IRS impersonation scams are surging. Remember: The IRS never calls demanding immediate payment, threatens arrest, requests gift cards/cryptocurrency, or contacts via email or social media about tax bills.
Protect yourself: File early, get an Identity Protection PIN, and verify IRS communications through your IRS online account.
Free Filing Options
IRS Free File: Free federal tax preparation for taxpayers earning $79,000 or less (AGI), including free state returns with most providers.
Direct File: IRS's own free filing system available in participating states—no third-party software required.
Key Dates for 2026 Tax Season
- January 26, 2026: Tax filing season begins
- April 15, 2026: Tax return deadline
- October 15, 2026: Extended filing deadline
Check refund status: Use Where's My Refund? tool starting 24 hours after e-filing.
Who Benefits Most from 2026 Changes?
Middle-income families ($60,000-$150,000) see the largest percentage savings. Retirement savers benefit from higher contribution limits. Service industry workers gain tax-free tips. Hourly workers keep tax-free overtime. Small businesses can immediately deduct equipment costs with 100% bonus depreciation.
Download the Official IRS Document
Download the IRS Revenue Procedure 2025-32 (PDF) for complete technical details on all 2026 inflation adjustments, including tax brackets, deductions, credits, and retirement plan limits.
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The Bottom Line
The 2026 IRS adjustments deliver real savings—most households will keep $600-$1,200 more this year. Update your withholding for immediate paycheck increases, maximize retirement contributions with higher limits, and file early to avoid scams and delays.
As tax season opens January 26, take advantage of these changes to optimize your 2026 tax strategy and keep every dollar the law allows.
Your bigger paycheck awaits.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional for guidance on your specific situation. Last updated: January 17, 2026.