Experts reveal their forecast for the IRS 2026 tax brackets: here’s what it means for you
In a new report, Bloomberg Tax & Accounting has projected next year’s federal income-tax brackets in the U.S.
An expert forecast has estimated the changes Americans can expect in federal income-tax brackets next year, as the Internal Revenue Service (IRS) prepares to announce its latest inflation adjustments.
Per a newly-released report by Bloomberg Tax & Accounting, the IRS’s tax brackets for 2026 are projected to be:
Projected 2026 tax brackets - single filers
- 10%: $0 to $12,400
- 12%: $12,401 to $50,400
- 22%: $50,401 to $105,700
- 24%: $105,701 to $201,775
- 32%: $201,776 to $256,225
- 35%: $256,225 to $640,600
- 37%: Over $640,600
Projected 2026 tax brackets - married joint filers
- 10%: $0 to $24,800
- 12%: $24,801 to $100,800
- 22%: $100,801 to $211,100
- 24%: $211,401 to $403,550
- 32%: $403,551 to $512,450
- 35%: $512,451 to $768,700
- 37%: Over $768,700
Why does the IRS adjust its tax brackets?
Each year, the IRS revises its tax bands to avoid what’s known as ‘bracket creep’ - when inflation pushes people into a higher tax bracket.
This can occur if a worker’s salary is adjusted upwards to keep pace with the rising cost of living, only for the pay hike to trigger an increase in the rate of tax they’re charged on part of their taxable income.
The Tax Foundation, a non-partisan tax-policy think tank based in Washington D.C., stresses that you “aren’t richer” when your pay only goes up in step with inflation.
“A cost-of-living adjustment simply helps ensure you can purchase the same amount of goods and services over time, but without also making the same inflation adjustments to the tax system, taxes will take a larger bite out of your income over time,” the Tax Foundation says.
According to Bloomberg Tax & Accounting, the IRS can be expected to apply a 2.7% rate of inflation to its new federal income-tax brackets in 2026.
Bloomberg Tax’s report, which you can read in full here, also takes into account the provisions of the so-called “One Big Beautiful Bill”, the Republican-backed tax and spending legislation signed into law by President Trump in July. The bill has kept in place the rates charged in each tax band in 2025; for example, the top bracket was due to rise to 39.6%, but will now remain at 37%.
What are the IRS’s current federal income-tax brackets?
2025 tax brackets - single filers:
- 10%: $0 to $11,925
- 12%: $11,926 to $48,475
- 22%: $48,476 to $103,350
- 24%: $103,351 to $197,300
- 32%: $197,301 to $250,525
- 35%: $250,526 to $626,350
- 37%: Over $626,350
2025 tax brackets - married joint filers:
- 10%: $0 to $23,850
- 12%: $23,851 to $96,950
- 22%: $96,951 to $206,700
- 24%: $206,701 to $394,600
- 32%: $394,601 to $501,050
- 35%: $501,051 to $751,600
- 37%: Over $751,600
As is pointed out by CBS’s personal-finance expert Aimee Picchi, a single filer with a taxable income of $50,000 a year would pay a top rate of 22% in 2025. However, Bloomberg Tax’s predicted brackets would push this annual taxable amount down to a maximum rate of 12%.
Remember: If you’re in a bracket above the minimum tax rate, you only pay a higher rate on the portion of your earnings that exceeds each band’s threshold. The IRS explains, for example, that a single filer with a taxable income of $58,000 in 2025 would be charged: 10% on the first $11,925; 12% on the next $36,550; and 22% on the remainder.
How the standard deduction could rise in 2026
One way to reduce your taxable income is to claim the IRS’s standard deduction - a fixed dollar amount that eligible filers can apply as a deductible expense “no questions asked”, says the tax-advice service TurboTax.
You can’t get the standard deduction if you’re already claiming itemized deductions. Some other taxpayers are also ineligible; check out this IRS breakdown for more details.
In 2026, Bloomberg Tax predicts that the IRS’s standard deduction for single filers will rise from $15,000 to $16,100, while married joint filers will see their fixed deductible amount increase from $30,000 to $32,200.
When will the IRS announce its 2026 tax brackets?
The IRS tends to publish its adjusted federal income-tax brackets each fall. Speaking to CBS MoneyWatch, a spokesperson for the U.S.’s federal tax agency said: “The IRS will issue authoritative guidance, as it usually does, sometime between mid-October and early November.”
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