As we approach the 2026 tax year, it’s important to understand the upcoming changes in federal income tax brackets. These adjustments will affect millions of taxpayers across the United States, especially with the expiration of key provisions from the 2017 Tax Cuts and Jobs Act (TCJA).
Overview of 2026 Tax Changes
In 2026, many tax rates are set to revert to pre-TCJA levels unless new legislation extends the current structure. This means higher tax rates for individuals and families, along with changes to deductions and credits.
2026 Federal Income Tax Brackets (Projected)
| Filing Status | Taxable Income Range | Tax Rate |
|---|---|---|
| Single | $0 – $9,950 | 10% |
| Single | $9,951 – $40,525 | 15% |
| Single | $40,526 – $86,375 | 25% |
| Married Filing Jointly | $0 – $19,900 | 10% |
| Married Filing Jointly | $19,901 – $81,050 | 15% |
| Married Filing Jointly | $81,051 – $172,750 | 25% |
Key Takeaways
- Tax rates are expected to rise for most income brackets in 2026.
- The standard deduction may decrease slightly from 2025 levels.
- Itemized deductions could become more significant for middle-income earners.
- Estate tax exemption will likely drop to about $6 million per individual.
Who Will Be Most Affected?
Middle- and high-income households will see the most noticeable impact. Those who benefited from the reduced tax rates under TCJA should prepare for higher marginal rates and reduced child tax credits starting in 2026.
Tax Planning Tips for 2026
- Maximize retirement contributions to reduce taxable income.
- Take advantage of 2025 tax rates before the 2026 increase.
- Consider Roth IRA conversions while rates are lower.
- Consult a tax advisor for personalized strategies.
FAQs About the 2026 Tax Brackets
Will tax rates definitely increase in 2026?
Unless Congress passes an extension to the 2017 TCJA tax cuts, rates will revert to their higher pre-2018 levels.
How can I prepare for the 2026 changes?
Review your income sources, deductions, and credits to optimize your 2025 tax return and minimize liability in 2026.
For more financial and tax insights, visit BizzMags.com — your trusted source for business and finance updates.
