2026 Federal Tax Updates Announced

When the One Big Beautiful Bill (OBBB) Act was passed on July 4, it left several open questions, many of which the IRS is now beginning to address.

Each year, the IRS reviews more than 60 tax provisions to adjust for inflation and help prevent “bracket creep,” which occurs when rising incomes push taxpayers into higher brackets without an actual increase in purchasing power. However, this year’s process carries additional complexity due to the new OBBB legislation.

In early October, the IRS released the updated federal income tax brackets and standard deductions for tax year 2026 (to be filed in 2027).

Key Highlights for 2026

• Standard Deduction: increases to $32,200 for married couples filing jointly (up from $31,500 in 2025) and $16,100 for single filers (up from $15,750).

• AMT (Alternative Minimum Tax) Exemption: rises to $90,100 for single filers and $140,200 for married couples filing jointly.

• Additional updates include adjustments to the Earned Income Tax Credit, Child Tax Credit, capital gains tax brackets, and qualified business income deductions.

If you have questions about these IRS updates or other tax law changes, please don’t hesitate to reach out. It may also be a great time to connect with your tax, legal, or accounting professional to discuss how these adjustments could impact you.

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