New 2026 Tax Brackets are Here

By Patrick Diamond, CFP®

The IRS released the new federal income tax brackets for tax year 2026 (returns filed in 2027), reflecting inflation adjustments under the new tax law.

Here are a few highlights:

• The lowest two tax brackets get a 4 % bump, while the higher brackets increase by 2.3 %. Overall, the average adjustment is about 2.7%. 

• For single filers, the top 37% marginal rate begins at taxable income above $640,600, and for married filing jointly it begins above $768,700. 

• The standard deduction rises to $16,100 for singles and married individuals filing separately, $32,200 for married filing jointly, and $24,150 for heads of households. 

• The 0% capital gains bracket thresholds are also bumped: up to $49,450 for single filers and $98,900 for joint filers.

• The federal estate-tax exclusion is increased to $15 million per individual (i.e. $30 million for married couples), up from $13.99 million.

• The annual gift-tax exclusion remains at $19,000 for 2026.

*This blog post and all information contained in it are for information purposes only and does not constitute tax or legal advice.