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IRS Sets New Tax Brackets for 2026. See How They Have Changed.
Barrons· 2025-10-09 18:03
Core Points - The IRS announced inflation adjustments for the 2026 tax brackets and provisions of the tax code [1] - The standard deduction for individuals will increase to $16,100 and for married couples filing jointly to $32,200 [1] - The additional standard deduction for seniors aged 65 and over is set at $1,650 for each married spouse and $2,050 for single taxpayers [2] Tax Rates and Exemptions - The top marginal tax rate remains at 37% for individual taxpayers with incomes over $640,600 and $768,700 for married couples filing jointly [3] - The exemption amount for the alternative minimum tax is $90,100 for single filers and $140,200 for married couples filing jointly [3] - The estate tax exclusion for 2026 will be $15 million, an increase from $13.99 million [4] Other Provisions - The annual gift tax exclusion remains unchanged at $19,000 per recipient [4] - The maximum contribution to flexible spending accounts will increase to $3,400, up from $3,300 [4] - The tax rates for various income brackets are detailed, with the lowest rate at 10% for incomes of $12,400 or less for single individuals [4]