Perhaps you’ve been in the situation where tax time rolls around again, and you’re caught off guard by how much you owe. “Same job, same retirement income, same lifestyle, yet the tax bill is higher,” said Taylor Kovar, certified financial planner and CEO of 11 Financial. “That usually has less to do with earning more and more to do with how the tax rules quietly shift over time. They also change when thresholds move, benefits phase out, and rules expire, which is why checking in on your tax picture once ...

Core Insights - The IRS has made significant changes to the tax code for 2026, which will likely result in Americans saving money on their taxes due to increased standard deductions [1][2] - The income thresholds for federal income tax brackets are set to change, impacting how much individuals and married couples will be taxed [2][3] Group 1: Standard Deductions - For tax year 2026, the standard deduction will increase to $32,200 for married couples filing jointly, $16,100 for single taxpayers, and $24,150 for heads of households [1] - This increase in standard deduction will lower taxable income, leading to reduced tax liabilities for many Americans [1] Group 2: Income Tax Brackets - The highest tax bracket for individual filers will apply to incomes over $640,600, taxed at a 37% rate, while for married couples filing jointly, it applies to incomes over $768,700 [2] - The 35% tax bracket will include incomes over $256,225 for individuals and over $512,450 for married couples [2] - Individuals earning at least $12,400 and married couples earning at least $24,800 will be taxed at a 12% rate, while those earning $12,400 or less will be taxed at a 10% rate [3] Group 3: Bracket Creep - Adjusting tax bracket thresholds is a common practice to combat "bracket creep," which occurs when inflation pushes taxpayers into higher tax brackets without an actual increase in real income [4]

Core Points - The IRS has announced changes to the 2026 tax brackets, which will impact taxpayers when they file their 2026 returns in 2027 [1] - Key changes include adjustments for inflation, an increase in the standard deduction, and modifications to the state and local tax deduction [1][4] Tax Bracket Adjustments - The phenomenon of "bracket creep" will lead to higher tax brackets for 2026 due to inflation, affecting both single and joint filers [3] - For single filers, the 2026 tax brackets will be as follows: - 37% for income over $640,600 (up from $626,350 in 2025) - 35% for income over $256,225 (up from $250,525) - 32% for income over $201,775 (up from $197,300) - 24% for income over $105,700 (up from $103,350) - 22% for income over $50,400 (up from $48,475) - 12% for income over $12,400 (up from $11,925) - 10% for income below $12,400 (up from $11,925) [3] - For joint filers, the 2026 tax brackets will be: - 37% for income over $768,700 (up from $751,600) - 35% for income over $512,450 (up from $501,050) - 32% for income over $403,550 (up from $394,600) - 24% for income over $211,400 (up from $206,700) - 22% for income over $100,800 (up from $96,950) - 12% for income over $24,800 (up from $23,850) - 10% for income below $24,800 (up from $23,850) [5] Standard Deduction Increases - The standard deduction will also see increases for the 2026 tax year, benefiting those who do not itemize deductions [5][6] - For single filers, the standard deduction will rise to $16,100 (up from $15,750 in 2025) - Head-of-household filers will see their deduction increase to $24,150 (up from $23,625) - Joint filers will have their standard deduction increase to $32,200 (up from $31,500) [6]