Overview

• The IRS released inflation-adjusted 2026 marginal brackets that will apply to returns filed in 2027, with the top 37% rate starting at $640,600 for single filers and $768,700 for married couples filing jointly.
• The standard deduction rises to $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for heads of household.
• The adjustments incorporate the One Big Beautiful Bill Act’s changes, extending many TCJA-era provisions and introducing targeted relief such as limited tip-income benefits.
• Analysts estimate broad tax cuts in 2026, with the Tax Foundation modeling an average 5.4% increase in after-tax income and the Tax Policy Center projecting cuts for about 85% of households averaging roughly $2,900.
• The Congressional Budget Office pegs the 10-year deficit impact at about $3.4 trillion, and the IRS says taxpayers must continue to file and pay on schedule despite agency-wide furloughs during the shutdown.