2026 Tax Brackets & Standard Deductions Released — What It Means for You
The IRS has officially announced the tax brackets and standard deduction amounts for 2026, and there’s good news for most taxpayers — the numbers are going up. Thanks to inflation adjustments and the new “One Big Beautiful Bill” (OBBB) law, Americans can expect slightly lower tax bills or bigger refunds next year.
Let’s break down what’s changing, how it affects your 2026 tax filing, and what the new bonus deduction for seniors means.
Why the IRS Updates Tax Brackets Every Year
Every year, the IRS reviews the tax system to adjust for inflation. This helps prevent “bracket creep,” where rising wages push people into higher tax brackets even if their buying power hasn’t changed.
For 2026, the IRS made larger-than-usual changes due to continued inflation and updates from the OBBB tax reform bill passed earlier this year. These updates will apply to tax returns filed in April 2027.
2026 Tax Brackets at a Glance
Here’s a look at the new federal income tax brackets for 2026. The rates themselves haven’t changed, but the income ranges have been adjusted upward.
Single Filers:
- 10% on income up to $12,050
- 12% on income from $12,051 to $48,600
- 22% on income from $48,601 to $98,750
- 24% on income from $98,751 to $191,400
- 32% on income from $191,401 to $244,700
- 35% on income from $244,701 to $587,400
- 37% on income over $587,400
Married Filing Jointly:
- 10% on income up to $24,100
- 12% on income from $24,101 to $97,200
- 22% on income from $97,201 to $197,500
- 24% on income from $197,501 to $382,800
- 32% on income from $382,801 to $489,400
- 35% on income from $489,401 to $732,800
- 37% on income over $732,800
These bracket adjustments mean many people will pay slightly less in taxes even if their salary goes up next year.
Standard Deduction Increases for 2026
One of the biggest changes under the OBBB law is the higher standard deduction, which most taxpayers use instead of itemizing.
Here are the new standard deduction amounts for 2026:
- Single: $16,100
- Married Filing Jointly: $32,200
- Head of Household: $23,900
That’s an increase of about $1,000–$1,800 depending on your filing status.
This larger deduction means you’ll pay taxes on less of your income, reducing your overall bill. For most families, this update will lead to hundreds of dollars in savings.
New “Bonus Deduction” for Seniors (Age 65 and Older)
A major highlight of the 2026 updates is the new “bonus deduction” for seniors.
Under the OBBB law, taxpayers aged 65 or older will now receive an additional $3,000 deduction per person, on top of the standard deduction.
For example:
- A married couple filing jointly, both aged 65+, can claim a total standard deduction of $38,200 ($32,200 + $3,000 each).
- A single senior filer can claim $19,100 ($16,100 + $3,000).
This change aims to help older Americans keep more of their income, especially those living on Social Security or fixed pensions.
Why These Changes Matter
These new tax brackets and deductions make a real difference for millions of Americans.
- More Take-Home Pay: Employers use IRS tax tables to calculate how much tax to withhold. Higher brackets mean slightly bigger paychecks for many workers.
- Smaller Tax Bills: A higher standard deduction reduces your taxable income, so you owe less at filing time.
- Simpler Filing: Most taxpayers don’t need to itemize, which saves time and reduces errors.
For retirees, the bonus deduction offers extra relief, helping to offset rising costs for healthcare, food, and housing.
How to Prepare for 2026 Taxes
Even though 2026 might seem far away, smart planning now can help you save more later. Here’s how to prepare:
- Check Your Withholding:
Use the IRS withholding calculator to make sure enough tax is taken from your paycheck. - Review Your Income:
If you’re close to a higher bracket, consider timing bonuses or income to stay in a lower rate. - Plan for Retirement Savings:
Contributions to 401(k)s or IRAs reduce taxable income and may keep you in a lower bracket. - Understand Senior Benefits:
If you’re turning 65 soon, note how the bonus deduction can boost your refund.
Impact of the OBBB Tax Law
The “One Big Beautiful Bill” (OBBB) is one of the most talked-about tax reforms in recent years. It focuses on lowering middle-class tax burdens and expanding deductions.
Key features include:
- Higher standard deductions across all categories
- The new senior bonus deduction
- Expanded child and dependent credits
- Inflation-based adjustments through 2030
Tax experts say these updates could save average families $600 to $1,200 per year.
Common Questions About the 2026 Tax Changes
Q: Will tax rates change in 2026?
A: No, the rates (10%, 12%, 22%, etc.) stay the same — only the income ranges have increased.
Q: Do seniors automatically get the bonus deduction?
A: Yes, anyone 65 or older on December 31, 2026, qualifies automatically.
Q: Should I still itemize deductions?
A: Only if your deductible expenses (like mortgage interest or charitable donations) are more than your new standard deduction.
The Bottom Line
The IRS’s 2026 updates bring some good news: higher deductions and adjusted brackets that may reduce what you owe next year. The new bonus deduction for seniors is another welcome benefit, putting more money back in the hands of older taxpayers.
If you want to maximize your savings, review your finances now and plan for these new changes. With smart tax planning, 2026 could be a year where more Americans keep a little extra in their pockets.