Overview

• Standard deductions for 2026 rise to $32,200 for married joint filers, $16,100 for single filers, and $24,150 for heads of household.
• Marginal rates are unchanged, but thresholds move higher, with the 37% bracket starting above $640,600 for single filers and $768,700 for married couples filing jointly.
• Guidance reflects new provisions from the law, including an additional deduction of up to $6,000 for taxpayers age 65 and older through 2028 and a federal income tax exclusion on tips up to $25,000.
• The estate tax exclusion increases to $15 million, the maximum Earned Income Tax Credit rises to $8,231 for larger families, the employer-provided childcare credit cap jumps to $500,000, and AMT exemptions move to $90,100 (single) and $140,200 (joint).
• The IRS is operating with a reduced workforce due to a shutdown-related furlough, with core filing and payment functions continuing, and outside models project modest gains in 2026 take-home pay for most households.