Every year, the government adjusts certain tax thresholds and deductions for inflation. For the 2026 tax year, a host of new inflation-adjusted figures have been released, many reflecting updates under the One, Big, Beautiful Bill Act.
Standard Deduction Increases
Married couples filing jointly can expect a new standard deduction of $32,200, up from $31,500. Single taxpayers see an increase from $15,750 to $16,100, while heads of household jump from $23,625 to $24,150.
Marginal Tax Rate Thresholds
The top rate of 37% continues to apply to single taxpayers with incomes exceeding $640,600 and married couples over $768,700. Other bracket thresholds have been nudged upward across all filing statuses.
Estate Tax Exemption
The basic exclusion amount increases to $15,000,000, up from $13,990,000 in 2025. This allows more assets to pass free of federal estate tax.
Other Notable Changes
- Adoption credit increases to $17,670
- Employer childcare credit cap raised to $500,000
- Maximum EITC rises to $8,231 for 3+ children
- FSA limit increases to $3,400
- Foreign earned income exclusion rises to $132,900
