New for 2026
2026 brackets, standard deduction, and what inflation moved
The tax rates did not change. Almost everything around them did. This is what moved on the return you are filing now, why your tax may be a little lower on the same income, and why the refund probably didn’t move with it.
The seven federal rates, 10% through 37%, are now permanent; the 2025 tax law removed the expiration date that had hung over them since 2017. What changes each year is where each rate starts and stops. For 2026 the brackets moved up about 4% for inflation, which means a little more of your income is taxed at each lower rate before the next one kicks in. On an unchanged income, that is a few hundred dollars less tax. Whether you notice it in April is another matter.
| 2025 | 2026 | |
|---|---|---|
| Standard deduction | $15,750 / $31,500 | $16,100 / $32,200 |
| Age-65 add-on | $2,000 / $1,600 each | $2,050 / $1,650 each |
| 12% bracket ends | $48,475 / $96,950 | $50,400 / $100,800 |
| 22% bracket ends | $103,350 / $206,700 | $105,700 / $211,400 |
| 24% bracket ends | $197,300 / $394,600 | $201,775 / $403,550 |
| 37% bracket starts | $626,350 / $751,600 | $640,600 / $768,700 |
| 0% capital gains up to | $48,350 / $96,700 | $49,450 / $98,900 |
| Social Security wage base | $176,100 | $184,500 |
Head of household, for an unmarried person supporting a dependent, sits between the two: a $24,150 standard deduction and a 12% bracket that runs to $67,450. The full 2026 table for all three statuses is on the numbers page.
How brackets work
A bracket is not a tax on all your income. A single person with $60,000 of taxable income is “in the 22% bracket,” but only the part above $50,400 is taxed at 22%. The first $12,400 is taxed at 10% and the next $38,000 at 12%. A raise that pushes you into a higher bracket never costs you more than the raise; the higher rate applies only to the dollars above the line.
The bracket still matters. It is the rate on the next dollar, whether that dollar is a bonus, an IRA withdrawal or a Roth conversion, and it is the number that decides whether a deduction is worth 12 cents or 22 cents.
Worked example: $60,000 of taxable income, single
| Slice | Income in the slice | Rate | Tax |
|---|---|---|---|
| $0 to $12,400 | $12,400 | 10% | $1,240 |
| $12,400 to $50,400 | $38,000 | 12% | $4,560 |
| $50,400 to $60,000 | $9,600 | 22% | $2,112 |
| Total | $60,000 | 13.2% overall | $7,912 |
“In the 22% bracket,” paying 13.2% overall. On the same $60,000 of taxable income in 2025, the tax was $8,114: the 2026 tables saved $202 without anything else changing. Taxable income here is after the $16,100 standard deduction, so this is a person earning about $76,000.
The standard deduction
The standard deduction is the amount of income that is not taxed at all before the brackets start. For 2026 it is $16,100 single, $24,150 head of household and $32,200 married filing jointly. Taxpayers 65 or older, or blind, add $2,050 if single or $1,650 per spouse. And through 2028 each person 65 or older gets the separate $6,000 senior deduction on top, which shrinks by 6% of income over $75,000, or $150,000 joint.
Stack those up and a couple both over 65 with modest income starts the brackets at $32,200 plus $3,300 plus $12,000, or $47,500, before a dollar is taxed. Add the 0% capital gains layer and a retired couple can have close to $100,000 of income with very little federal tax, which is why the timing of IRA withdrawals and Roth conversions matters so much in retirement.
Two things that did not move your way
The alternative minimum tax reaches more people. The AMT exemption now starts phasing out at $500,000 of income single and $1,000,000 joint, down from about $626,000 and $1.25 million, and it phases out twice as fast. Large stock option exercises and big capital gain years deserve a look before December.
The Social Security wage base rose to $184,500, so higher earners pay the 6.2% tax on $8,400 more of pay than in 2025, about $520 more for the year. There is no cap on the Medicare share.
Behind the scenes
When a client’s income is nearly the same as last year but the refund is not, we run last year’s return through this year’s tables. The inflation adjustment alone lowers the tax on an unchanged income by a few hundred dollars, and employer withholding tables moved at the same time, so less was taken out. The two usually offset, and the refund lands about where it was. When it doesn’t, the gap points to something else: a W-4 that changed, a second job, a pension that started paying, or a bonus withheld at a flat 22% when the household’s real bracket is 24%.
The Colorado side
Colorado has no brackets. It starts from federal taxable income, after the standard or itemized deduction, and taxes it at a flat 4.40%, so the federal inflation adjustment flows through: a bigger standard deduction means less Colorado tax too. The state has its own set of additions and subtractions on top (the retirement subtraction, the overtime addback, the charitable addback for high earners), each covered in the Colorado section of this site.
What to bring your preparer
- Last year’s return, so this year’s can be compared line by line
- Every W-2, including one from a job that ended early in the year
- Dates of birth for both spouses, since the age add-on and senior deduction key on turning 65 by December 31
- If the refund changed a lot: your most recent pay stub and any W-4 you filed during the year
- If you expect a bonus, a large withdrawal or a Roth conversion before year end: the amount, so the bracket on it can be figured in advance
Questions people ask
I got a raise and now I’m in a higher bracket. Will I take home less?
No. Only the dollars above the bracket line are taxed at the higher rate. A raise always leaves you with more after tax; the question is only how much more.
Why is my refund smaller when my tax went down?
Because withholding went down too, usually by about the same amount. The refund is the difference between what was withheld and what was owed, not a measure of either one.
Do I get the senior deduction if I turn 65 in December?
Yes. Age is measured at the end of the year. Turning 65 on December 31 earns both the $2,050 or $1,650 add-on and the $6,000 senior deduction for the whole year.
Is the standard deduction the same for everyone my age?
No. It depends on filing status, age, blindness, and whether someone else can claim you as a dependent. A dependent with a summer job has a much smaller standard deduction, which is why some teenagers owe tax on modest earnings.
When will the 2027 figures be known?
The IRS usually publishes them in late October or early November. They go on the numbers page and the updates page when they land.