The IRS has announced inflation adjustments for more than 60 federal tax provisions for the 2026 tax year, including updated tax brackets, standard deductions, and key credit thresholds.

The adjustments, detailed in a document released on Oct. 9, reflect the IRS’s annual inflation indexing and include changes enacted under the One Big Beautiful Bill Act, signed into law in July by President Donald Trump. The new figures take effect for the 2026 tax year and will apply to returns filed in 2027.

Under the revised structure, the top federal income tax rate remains 37 percent, applying to single filers with taxable income above $640,600 and to married couples filing jointly with incomes above $768,700. The lower rates of 10, 12, 22, 24, 32, and 35 percent also remain unchanged, but the income thresholds that apply to them have been adjusted upward to account for inflation—changes meant to keep taxpayers from being pushed into higher brackets without a real effective increase in earnings.

For 2026, the 35 percent bracket begins at $256,225 for single filers, or $512,450 for married couples filing jointly. The 32 percent rate starts at $201,775 ($403,550 for joint filers), the 24 percent rate at $105,700 ($211,400 for joint filers), and the 22 percent rate at $50,400 ($100,800 for joint filers). The 12 percent bracket begins at $12,400 ($24,800 for joint filers), while income below those levels is taxed at 10 percent.

The standard deduction, which most taxpayers claim instead of itemizing, will increase modestly. Married couples filing jointly can deduct $32,200, up from $31,500 for 2025. Single filers and married individuals filing separately will see their deduction rise to $16,100, while heads of household can claim $24,150.

For investors, the long-term capital gains tax rates remain at zero percent, 15 percent, and 20 percent, with the first two thresholds adjusted for inflation. The zero percent rate applies to taxable income up to $98,900 for married couples filing jointly, $66,200 for heads of household, and $49,450 for single filers. The 15 percent rate applies up to $613,700 for joint filers and $545,500 for single filers, with income above those levels taxed at the statutory 20 percent maximum rate.

Other key changes include an increase in the Alternative Minimum Tax exemption to $140,200 for joint filers and $90,100 for single filers. The federal estate tax exclusion will rise to $15 million, up from $13.99 million in 2025. Families adopting children can claim an increased adoption tax credit of up to $17,670, while the Earned Income Tax Credit for families with three or more qualifying children will reach a maximum of $8,231.

For Americans working abroad, the foreign earned income exclusion will rise to $132,900. Employers will see a major boost to the employer-provided child care credit, which increases from $150,000 to $500,000, or $600,000 for small businesses.

Workplace benefit limits are also rising. The monthly cap for qualified transportation and parking benefits will increase to $340, and workers can contribute up to $3,400 to health flexible spending accounts, with a $680 carryover limit for unused funds.

Some provisions remain unchanged. The personal exemption stays at zero, consistent with its elimination under the 2017 tax overhaul, and the suspension of the itemized deduction cap remains permanent, except for a limitation applying to the highest-income taxpayers.