IRS tax brackets and 2026 changes could lower taxes, boost paychecks
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New tax brackets, higher standard deductions and expanded credits are now in effect — changes that could boost paychecks and lower income taxes for many Americans in 2026 and beyond.
Why it matters: The IRS updates reflect annual inflation adjustments and sweeping tax changes signed into law last summer in the One Big, Beautiful Bill Act (OBBBA), making several provisions from the 2017 tax overhaul permanent.
- The biggest changes include new tax breaks for seniors and tipped workers, as well as the extension of tax provisions from President Trump's first term.
Catch up fast: Tax breaks created by last year's law — including changes affecting Social Security income and the elimination of federal income tax on tips — can be claimed on tax returns filed in 2026.
- The IRS's new 2026 tax brackets are starting to affect paychecks now and will apply to returns filed in 2027.
2026 income tax brackets
The big picture: Each year, the Internal Revenue Service adjusts more than 60 tax provisions to prevent "bracket creep," which happens when inflation pushes workers into higher tax brackets without a real increase in buying power. (See chart below.)
Standard tax deduction for returns filed in 2026
State of play: The IRS revised the standard deductions for the 2025 tax year under OBBBA — changes that apply to returns filed in 2026.
The updated standard deductions are:
- $31,500 for married couples filing jointly (up from $30,000)
- $15,750 for single filers (up from $15,000)
- $23,625 for heads of household (up from $22,500)
Between the lines: Normally, the IRS adjusts the standard deduction once a year to keep pace with inflation. But the new law boosted the deductions early — and made those higher amounts permanent — reshaping how future increases will work.
2026 tax withholding
The IRS also released the 2026 tax withholding tables, which determine how much money employers withhold from employee wages in paychecks for federal taxes.
- The Tax Foundation said the tables "will adjust so taxpayers receive the tax cuts through higher take-home pay."
Seniors' $6,000 deduction on Social Security income
Zoom in: A new $6,000 federal tax deduction for Americans 65 and older took effect with the 2025 tax year, offering a break for seniors who pay taxes on Social Security income.
- The temporary deduction runs through the 2028 tax year and is available to both itemizers and non-itemizers, in addition to the standard deduction.
- Married couples where both spouses qualify can claim up to $12,000 total.
- The deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers), the IRS says.
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