IRS announces new federal income tax brackets for 2026

[mystery-ak]

IRS announces new federal income tax brackets for 2026
Published Thu, Oct 9 202510:30 AM EDTUpdated 2 Hours Ago
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Kate Dore, CFP®, EA
@in/katedore/

Key Points

    The IRS has unveiled higher federal tax brackets for 2026 to adjust for inflation.

    The standard deduction will increase to $32,200 for married couples filing together and $16,100 for single taxpayers.

    There are also changes to the long-term capital gains brackets, estate tax exemption, child tax credit eligibility and more.
 
    The IRS announcements come a day after the agency said it would furlough nearly half its workforce due to the ongoing government shutdown.

The IRS has announced new federal income tax brackets and standard deductions for 2026.

In its announcement Thursday, the agency raised the income thresholds for each bracket, which apply to tax year 2026 for returns filed in 2027.

The IRS also boosted figures for other provisions, including long-term capital gains brackets, estate and gift tax exemption and eligibility for the earned income tax credit, among others.

For 2026, the top rate of 37% applies to individuals with taxable income above $640,600 and married couples filing jointly earning $768,700 or more for 2026.

Federal income tax brackets show how much you owe on each part of your “taxable income,” which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

more
https://www.cnbc.com/2025/10/09/2026-federal-tax-brackets.html

[jafo2010]

I have a HUGE problem with the IRS making any changes.  It is the responsibility of Congress to set tax policy, not the IRS.  This is a combination of the bureaucrats usurping Congress' power, and Congress abdicating their responsibility to establish this policy.

Considering that Congress can't develop a budget prior to the start of a fiscal year, I would say it would behoove President Trump to develop a commission working with Congress to focus on what can be done to end the moronic process they currently abide by.

Our government is nonfunctional, has been nonfunctional most of my 72 years, and this nonsense must end.

I say there are too many cooks in the kitchen.  With the average puke in Congress having 60 staff, I suggest we make changes to end the bullsh*t!

Why do we have 2 Senators from each state?    REDUCE IT TO 1 SENATOR PER STATE

                       Savings:    50 Senators   x   $174,000 per year                                      $8,700,000
                                        SOPOEA* Budget:  $588,381,000     50% reduction           $294,190,500

*  Senators' Official Personnel and Office Expense Account

                                        435 current House members
                                        326 (cost saving reduction, 25%)

                                        109 US Reps    x   $174,000                                               $18,966.000
                                        Members' Represential Allowance  $844,000,000                $211,000,000
                                              25% reduction   

                                              Total Savings:                                                      $532,856,500

Note:  Above does not reflect savings in benefits                                                      

[jafo2010]

And on establishing a budget for the federal government, I think the time has come to fine members of Congress the equivalent of their annual salary if they cannot complete a final budget by Setember 1, one full month before the start of the new fiscal year.  That is one of the primary reasons they are there, to determine the purse strings.

CONGRESS NOT DOING THEIR JOB IS UNACCEPTABLE.  FINE THEM THEIR ANNUAL SALARY AND WATCH HOW THAT BUDGET IS COMPLETED BY THE DUE DATE.

[Bigun]

I have a HUGE problem with the IRS making any changes.  It is the responsibility of Congress to set tax policy, not the IRS.  This is a combination of the bureaucrats usurping Congress' power, and Congress abdicating their responsibility to establish this policy.

Considering that Congress can't develop a budget prior to the start of a fiscal year, I would say it would behoove President Trump to develop a commission working with Congress to focus on what can be done to end the moronic process they currently abide by.

Our government is nonfunctional, has been nonfunctional most of my 72 years, and this nonsense must end.

I say there are too many cooks in the kitchen.  With the average puke in Congress having 60 staff, I suggest we make changes to end the bullsh*t!

Why do we have 2 Senators from each state?    REDUCE IT TO 1 SENATOR PER STATE

                       Savings:    50 Senators   x   $174,000 per year                                      $8,700,000
                                        SOPOEA* Budget:  $588,381,000     50% reduction           $294,190,500

*  Senators' Official Personnel and Office Expense Account

                                        435 current House members
                                        326 (cost saving reduction, 25%)

                                        109 US Reps    x   $174,000                                               $18,966.000
                                        Members' Represential Allowance  $844,000,000                $211,000,000
                                              25% reduction   

                                              Total Savings:                                                      $532,856,500

Note:  Above does not reflect savings in benefits                                                    

 

How in the hell does anyone plan for anything while the tax code remains subject to the whims of congress? 

[Hoodat]

There should be only one tax bracket.

[IsailedawayfromFR]

There should be only one tax bracket.

And Everybody needs to pay taxes.

[Kamaji]

I have a HUGE problem with the IRS making any changes.  It is the responsibility of Congress to set tax policy, not the IRS.  This is a combination of the bureaucrats usurping Congress' power, and Congress abdicating their responsibility to establish this policy.

Considering that Congress can't develop a budget prior to the start of a fiscal year, I would say it would behoove President Trump to develop a commission working with Congress to focus on what can be done to end the moronic process they currently abide by.

Our government is nonfunctional, has been nonfunctional most of my 72 years, and this nonsense must end.

I say there are too many cooks in the kitchen.  With the average puke in Congress having 60 staff, I suggest we make changes to end the bullsh*t!

Why do we have 2 Senators from each state?    REDUCE IT TO 1 SENATOR PER STATE

                       Savings:    50 Senators   x   $174,000 per year                                      $8,700,000
                                        SOPOEA* Budget:  $588,381,000     50% reduction           $294,190,500

*  Senators' Official Personnel and Office Expense Account

                                        435 current House members
                                        326 (cost saving reduction, 25%)

                                        109 US Reps    x   $174,000                                               $18,966.000
                                        Members' Represential Allowance  $844,000,000                $211,000,000
                                              25% reduction   

                                              Total Savings:                                                      $532,856,500

Note:  Above does not reflect savings in benefits                                                      

Congress did set tax policy.  Congress set the original bracket amounts and then instructed that they be adjusted for inflation each year using a statutorily identified formula. The IRS is doing nothing more than making a ministerial computation.  It is not making tax policy.

[Hoodat]

And Everybody needs to pay taxes.

Yep.

[The_Reader_David]

I have a HUGE problem with the IRS making any changes.                                     

But Congress mandates certain changes:  some things are indexed to inflation, some things have other statutory changes required between tax years (e.g. a new provision of the tax code coming into force, or one sunsetting).  The IRS announcing such things does not mean the IRS is making policy in defiance of Congress.

[jafo2010]

I stand corrected on the IRS.

However, everyone does not pay taxes.  Last number I heard, 57% of Americans do not pay one dime in taxes.  With a system where the majority do not contribute to paying taxes, I say the tax model is seriously flawed.

When I was 15 years of age, I made minimum wage in a union job, making $1.60 per hour, giving up 15 cents of every hour to the union, and paying federal income taxes.  I did not get exempted from paying federal income taxes.