IRS Confirms 2026 Tax Bracket Updates. What Top Earners Need to Know.

Core Insights - The IRS has released the 2026 tax brackets and standard deductions, which, while not changing marginal tax rates, could significantly impact tax bills for high earners [1][8] - The income thresholds for the tax brackets have been adjusted upward for inflation, affecting taxable income calculations for high-income households [2][3] Tax Bracket Changes - The 2026 tax brackets show no change in marginal tax rates, but the income thresholds have increased due to inflation adjustments [2] - Taxable income is defined as gross income minus allowable deductions, which are also increasing in 2026 [3] Standard Deductions - The standard deduction for single taxpayers will rise from $15,750 in 2025 to $16,100 in 2026, while for married couples filing jointly, it will increase from $31,500 to $32,200 [3][6] Impact on High Earners - In 2026, a married couple with an adjusted gross income (AGI) of $1,000,000 will see a decrease in their tax bill from $282,407.50 in 2025 to $280,250.50 in 2026, resulting in a savings of $2,157 [6][7] - The increase in the standard deduction and adjusted tax brackets means that slightly more income will be taxed at lower rates [4][6]