In its announcement on Thursday, the agency raised the income thresholds for each bracket, which applies to tax year 2026 for returns filed in 2027.
The IRS also boosted figures for other provisions, including long-term capital gains brackets, estate and gift tax exemption and eligibility for the earned income tax credit, among others.
For 2026, the top rate of 37% applies to individuals with taxable income above $640,600 and married couples filing jointly earning $768,700 or more for 2026.
Federal income tax brackets show how much you owe on each part of your “taxable income,” which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
The standard deduction will also increase in 2026, rising to $32,200 for married couples filing jointly, up from $31,500 in 2025. Starting in 2026, single filers can claim $16,100, a bump up from $15,750.
The IRS announcements come a day after the agency said it would furlough nearly half its workforce due to the ongoing government shutdown.
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