The Internal Revenue Service released Thursday its annual 2026 inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other changes.

The adjustments, reflected in Revenue Procedure 2025-32, reflect notable changes under the One, Big, Beautiful Bill.

The tax year 2026 adjustments generally apply to tax returns filed in 2027. 

The items for tax year 2026 of greatest interest to most taxpayers, the IRS explains, include the following dollar amounts:

Standard Deduction

For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of household, the standard deduction will be $24,150.

(For tax year 2025, the OBBB raises the standard deduction amount to $31,500 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction for 2025 is $15,750, and for heads of households, the standard deduction is $23,625.)

Marginal Rates

For tax year 2026, the top tax rate remains 37% for individual single taxpayers with incomes greater than $640,600 ($768,700 for married couples filing jointly).
The other rates are:

  • 35% for incomes over $256,225 ($512,450 for married couples filing jointly);
  • 32% for incomes over $201,775 ($403,550 for married couples filing jointly);
  • 24% for incomes over $105,700 ($211,400 for married couples filing jointly);
  • 22% for incomes over $50,400 ($100,800 for married couples filing jointly);
  • 12% for incomes over $12,400 ($24,800 for married couples filing jointly).
  • The lowest rate is 10% for incomes of single individuals with incomes of $12,400 or less ($24,800 for married couples filing jointly).
AMT Exemption Amounts

For tax year 2026, the alternative mimimum tax exemption amount for unmarried individuals is $90,100 and begins to phase out at $500,000 ($140,200 for married couples filing jointly for whom the exemption begins to phase out at $1 million).

Estate Tax Exclusions

Estates of decedents who die during 2026 have a basic exclusion amount of $15 million, up from a total of $13.9 million for estates of decedents who died in 2025.

Gifts

For tax year 2026, the annual exclusion for gifts remains at $19,000. (However, the annual exclusion for gifts to a spouse who is not a citizen of the United States increases to $194,000 for calendar year 2026, up $4,000 from calendar year 2025.)

Personal Exemptions

For tax year 2026, personal exemptions remain at 0, as in tax year 2025. The elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act of 2017 and was made permanent by OBBB.

Itemized Deductions

The limitation on itemized deductions was previously eliminated for tax years 2018-2025. This change was made permanent by OBBB, although it imposes a limitation on the tax benefit from itemized deductions for taxpayers in the highest tax bracket (37%).

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