The Internal Revenue Service has made annual inflation adjustments for more than 60 federal tax provisions, including tax-rate schedules.
Notable changes under President Trump’s One, Big, Beautiful Bill include adjustments for the tax year 2026. For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150, according to the IRS. Additionally, for tax year 2025, the OBBB raises the standard deduction amount to $31,500 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction for 2025 is $15,750, and for heads of households, the standard deduction is $23,625.
For tax year 2026, the top tax rate remains 37 percent for individual single taxpayers with incomes greater than $640,600 or $768,700 for married couples filing jointly. The other rates are:
- 35 percent for incomes over $256,225 ($512,450 for married couples filing jointly);
- 32 percent for incomes over $201,775 ($403,550 for married couples filing jointly);
- 24 percent for incomes over $105,700 ($211,400 for married couples filing jointly);
- 22 percent for incomes over $50,400 ($100,800 for married couples filing jointly);
- 12 percent for incomes over $12,400 ($24,800 for married couples filing jointly).
The lowest rate is 10 percent for incomes of single individuals with incomes of $12,400 or less ($24,800 for married couples filing jointly).
Click here for the full menu of adjustments and other notable items affected by indexing.
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