IRS Adjusts Tax Brackets and Increases Standard Deduction for 2026
1 report, 1 independent
Updated Mon 00:00
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What happened
The Internal Revenue Service published Revenue Procedure 2025-32 on October 12, 2026. The procedure adjusted the taxable income thresholds for the seven federal income tax rates, while keeping the rates themselves unchanged. Additionally, the standard deduction was increased to $16,100 for single filers and $32,200 for married couples filing jointly.
From indiatimes.com
Why it matters
The changes affect how income is taxed, helping to mitigate 'bracket creep'—the phenomenon where income increases push taxpayers into higher tax brackets even if their buying power remains stable. These adjustments impact how individuals calculate their tax bills.
From indiatimes.com
Who's involved
- Internal Revenue ServiceAnnounced the new tax rules via Revenue Procedure 2025-32.
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The entities involved
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Internal Revenue Service
revenue service of the United States federal government
Related events
- A tax bill was passed directing the Internal Revenue Service to publish new rules regarding tax compliance.
- The Internal Revenue Service issued guidance concerning the new tax accounts.
- The IRS administers tax credits for US citizens while the Center on Budget and Policy Priorities analyzes potential policy impacts.
- The IRS is replacing its existing tax system, FIRE, with the new IRIS system.
- Ron Estes introduced legislation and co-sponsored a bill aimed at improving the security of the tax filing process and the IRS.