The IRS has published the inflation adjusted figures for tax year 2026 (the return you file in early 2027). The standard deduction rises to $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.
On October 9, 2025 the IRS released Revenue Procedure 2025-32 (IR-2025-103), the annual inflation adjustments for tax year 2026. These are the figures that apply to income earned during 2026 and reported on the return filed in early 2027.
The standard deduction rises to $16,100 for single filers and married individuals filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. The top marginal rate of 37 percent applies to single taxpayers with taxable income above $640,600 and to married couples filing jointly above $768,700.
The alternative minimum tax exemption is $90,100 for unmarried individuals and $140,200 for married couples filing jointly. The estate tax basic exclusion amount for decedents dying in 2026 is $15,000,000. The maximum adoption credit is $17,670 of qualified expenses, and the health flexible spending arrangement salary reduction limit rises to $3,400.
For employers, the release also reflects the enhanced employer provided childcare credit, which increases the maximum credit from $150,000 to $500,000, or $600,000 for an eligible small business.
What to do now: if your income or withholding changed during 2026, this is the moment to check estimated payments and W-4 withholding against the new brackets rather than waiting for the return. Business owners who pay themselves through payroll should revisit their salary and distribution mix before year end.
Information here is general and is not advice for your situation. For advice about your situation, contact us.
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