The new IRS tax brackets for 2026 are here. See where you fit in.

Core Points - The IRS released important tax-planning numbers for 2026 despite a partial government shutdown, providing insights into the tax situation for Americans [1][2] - The new tax brackets and standard deduction values reflect adjustments due to inflation and changes from the Trump tax bill, with brackets adjusted approximately 2% higher for 2026 [3][4] - The One Big Beautiful Bill Act (OBBBA) maintains current tax rates, preventing a tax hike for nearly two-thirds of taxpayers, and makes permanent the income-tax brackets established by the Tax Cuts and Jobs Act [4][6] Tax Brackets and Deductions - The U.S. has a progressive tax system where individuals are taxed at increasing rates as their income rises, with only the income within a higher bracket being taxed at that rate [5] - The OBBBA introduces an additional inflation adjustment for the 10% and 12% tax brackets starting in 2026, which is expected to have a modest impact on tax bills [6][7] - The cost of the extra inflation adjustment is projected to add approximately $24 billion to the federal deficit over a decade, while extending current marginal tax rates is estimated to add $3.1 trillion to the deficit [7] Broader Implications - The OBBBA affects more than just tax brackets and rates; it also impacts deductions and tax credits, which play a significant role in reducing taxable income and tax liability [8]