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Internal Revenue Service has announced New standard deductions and federal income tax brackets for tax year 2026,
federal tax agency announced New brackets in October, which are typically adjusted annually for inflation. The standard deduction – which reduces the amount of income subject to tax – has also increased. These changes will take effect in 2026, and will impact taxpayers filing their taxes in 2027.
In the US, workers pay taxes as a percentage of their income, known as tax bracketBut if you start earning more money, you don’t pay as much tax on all your earnings,
Instead, you pay the higher rate only on the portion of income that falls within the higher bracket. irFor example, consider an employee with taxable income of $50,000, In 2026, that employee’s income up to $12,400 will be taxed at 10 percent, The remaining amount – in the “$12,401-$50,400” bracket – will be taxed at 12 percent,
According to Jeremy Bearer-Friend, a tax policy expert and law professor at George Washington University Law School, these adjustments mean taxpayers will be able to earn slightly more money before paying higher taxes.
Here’s what you need to know about the new standard deduction and income tax brackets based on your filing status and income.
Huge jump in standard deduction
The standard deduction is a “specific dollar amount that reduces the amount of taxable income” and is typically adjusted annually for inflation, according to ir,
Generally, a taxpayer’s standard deduction amount depends on their filing status. According to the IRS, other factors can affect the standard deduction, including whether the taxpayer is 65 or older, has a vision impairment, or is considered a dependent by another taxpayer.
In 2026, the standard deduction will increase to $16,100 for single taxpayers and married people filing separately. For married couples filing their taxes jointly, the standard deduction will increase to $32,200. For heads of households, the standard deduction will increase to $24,150.
Bearer-Friend said these increases are “probably the most significant inflation adjustment” for tax year 2026. The cuts are also likely to save some taxpayers money, according to Caroline Bruckner, managing director of American University. Kogod Tax Policy Centre.
“If the standard deduction goes up, it means their taxable income will go down, which means they’ll have to pay less taxes,” he said. Independent,
10 percent tax rate
For individual filers, income of $12,400 or less will be taxed at a 10 percent rate. For married people filing jointly, income of $24,800 or less will be taxed at a 10 percent rate.
12 percent tax rate
For individual filers, income over $12,400 will be taxed at a 12 percent rate. For married people filing jointly, income over $24,800 will be taxed at a 12 percent rate.
22 percent tax rate
For individual filers, income over $50,400 will be taxed at a 22 percent rate. For married people filing jointly, income over $100,800 will be taxed at a 22 percent rate.
24 percent tax rate
For individual filers, income over $105,700 will be taxed at a rate of 24 percent. For married people filing jointly, income over $211,400 will be taxed at a rate of 24 percent.
32 percent tax rate
For individual filers, income over $201,775 will be taxed at a 32 percent rate. For married people filing jointly, income over $403,550 will be taxed at a rate of 32 percent.
35 percent tax rate
For individual filers, income over $256,225 will be taxed at a rate of 35 percent. For married people filing jointly, income over $512,450 will be taxed at a rate of 35 percent.
37 percent tax rate
For individual filers, income over $640,600 will be taxed at a rate of 37 percent. For married people filing jointly, income over $768,700 will be taxed at a rate of 37 percent.
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