Tax Planning • 2026 Preview
The IRS Just Redrew America’s Tax Map — Are You in a New Bracket?
Washington promised simplicity. The IRS delivered suspense. With more than 60 provisions adjusted and the 2026 brackets set, the question is simple: Will you prepare now or pay later?
The Plot Twist: Inflation Meets Legislation
Each fall, the IRS adjusts tax rules for inflation to prevent bracket creep. Following the One Big Beautiful Bill (OBBB) Act, those routine adjustments carry extra weight: 2026 will be the first full year when many households will feel the impact of the new thresholds. [1][2]
2026 Federal Income Tax Brackets
| Tax Rate | For Single Filers | Married, Filing Jointly | Heads of Households |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,750 |
| 32% | $201,776 to $256,225 | $403,551 to $512,550 | $201,751 to $256,200 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,000 |
| 37% | $640,601 or more | $768,701 or more | $640,001 or more |
Applies to income earned in 2026 (returns filed in 2027). Source: IRS release, Oct 9, 2025[2].
Standard Deduction & AMT — Also Higher
- Standard deduction (2026): $32,200 for married filing jointly; $16,100 for single; $21,200 for head of household[2].
- AMT exemption (2026): $90,100 (single) and $140,200 (married filing jointly)[2].
These boosts help offset inflation, but they don’t automatically neutralize bracket creep. Pair them with smart tactics, such as Roth conversions and tax-efficient withdrawals.
Other IRS Updates Worth a Look
The IRS also adjusted the Earned Income Tax Credit, Child Tax Credit, capital gains brackets, and Qualified Business Income (QBI) thresholds[2]. If you own a business, those QBI phase-outs matter for planning.
Planning Corner
- Revisit withholding/estimates now to avoid April surprises.
- Open or contribute to an IRA
- Bundle or spread charitable gifts to clear the higher standard deduction.
- Utilize market dips and current brackets to create Roth conversion “windows.”
Explore detailed playbooks in the Retirement Hub.
Student of the Market
When Congress overhauled the code in 1986, early movers won twice: once by accelerating or deferring income to hit the new thresholds, and again by setting rules they could follow calmly as changes rolled in. Strategy beats headlines—every time.
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Footnotes & Sources
- CNBC.com, October 9, 2025.[1]
- IRS.gov, October 9, 2025.[2]