IRS reveals 2026 tax adjustments with changes from 'big, beautiful bill'

Core Points - The IRS announced annual inflation adjustments for tax provisions, primarily affecting tax year 2026, including changes under the One Big Beautiful Bill Act (OBBBA) [1][4] Tax Provisions - The standard deduction will increase to $16,100 for single taxpayers and $32,200 for married couples filing jointly in tax year 2026, with prior adjustments for 2025 set at $15,750 and $31,500 respectively [2] - The top tax rate remains at 37% for single taxpayers earning over $640,600 and married joint filers earning over $768,700 in 2026 [4] - Other tax brackets include 35% for incomes over $256,225 for individuals and $512,450 for married filers, 32% for incomes over $201,775 for individuals and $403,550 for married filers, and lower rates for lower income thresholds [8] OBBBA Changes - The estate tax exclusion will rise to $15 million for decedents in 2026, up from $13.99 million in 2025 [5] - Adoption credits will increase to $17,670 in 2026 from $17,280 in 2025, with a refundable amount of $5,120 [5] - The maximum employer-provided childcare tax credit will increase from $150,000 to $500,000, or $600,000 for eligible small businesses [9] Other Adjustments - The exemption amount for the alternative minimum tax will be set at $90,100, phasing out at $500,000 for individuals and $140,200 for married couples, starting at $1 million [6] - The earned income tax credit will rise to a maximum of $8,231 for qualifying taxpayers with three or more children, an increase from $8,046 in 2025 [10]