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]