IRS releases 2026 inflation-adjusted tax tables, standard deduction, and other amounts
Posted by DaveMoll on Oct. 23, 2025 / Subscribe 0
The IRS has released the annual inflation adjustments for 2026 for the income tax rate tables, plus more than 60 other tax provisions. The IRS makes these cost-of-living adjustments (COLAs) each year to reflect inflation.
The IRS has modified certain sections to reflect the amendments to the Internal Revenue Code by the One, Big, Beautiful Bill Act, Pub. L. 119-21, 139 Stat. 72 (2025), and has set forth inflation-adjusted items for various Code provisions.
2026 Income Tax Brackets
For 2026, the highest income tax bracket of 37 percent applies when taxable income hits:
- $768,700 for married individuals filing jointly and surviving spouses,
- $640,600 for single individuals and heads of households,
- $384,350 for married individuals filing separately, and
- $16,000 for estates and trusts.
2026 Standard Deduction
The standard deduction for 2026 is:
- $32,200 for married individuals filing jointly and surviving spouses,
- $24,150 for heads of households, and
- $16,100 for single individuals and married individuals filing separately.
The standard deduction for a dependent is limited to the greater of:
- the sum of $450, plus the dependent’s earned income.
Individuals who are blind or at least 65 years old get an additional standard deduction of:
- $1,650 for married taxpayers and surviving spouses, or
- $2,050 for other taxpayers.
Estate and gift tax adjustments for 2026
The following inflation adjustments apply to federal estate and gift taxes in 2026:
- the gift tax exclusion is $19,000 per donee, or $194,000 for gifts to spouses who are not U.S. citizens;
- the federal estate tax exclusion is $15,000,000; and
- the maximum reduction for real property under the special valuation method is $1,460,000.
2026 inflation adjustments for other tax items
The IRS also provided inflation-adjusted amounts for the:
- adoption credit,
- qualified transportation fringe benefit,
- health flexible spending cafeteria plans,
- various penalties, including the failure to file or furnish a correct information return, and
- many other provisions.
Effective date of 2026 adjustments
These inflation adjustments generally apply to tax years beginning in 2026, so they affect most returns that will be filed in 2027. However, some specified figures apply to transactions or events in calendar year 2026.
Rev. Proc. 2025-32, I.R.B. 2025-44, October 27, 2025.
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