(MENAFN- Live Mint) The IRS or Internal Revenue Service of the United States has just announced a major overall in the taxing system of America, with new federal income tax brackets and standard deductions for 2026.

Announcing the new income tax rule , the IRS said it was adjusting for inflation in an attempt to prevent 'bracket creep', when an increase in wages pushes the taxpayer into the higher tax bracket without having an actual impact on purchase power.

The agency on Thursday said it was increasing the income tax threshold for each bracket. The new IRS 2026 federal income tax bracket changes will apply to tax year 2026 for returns filed in 2027.

Here is everything you need to know about the IRS 2026 federal income tax brackets and other new rules.

IRS 2026 federal income tax brackets: What are the new brackets?For married couples filing jointly:

• Income range: $0 to $24,800 – 10% tax
• Income range: $24,801 to $100,800 – 12% tax
• Income range: $100,801 to $211,100 – 22% tax
• Income range: $211,101 to $403,550 – 24% tax
• Income range: $403,551 to $512,450 – 32% tax
• Income range: $512,451 to $768,700 – 35% tax
• Income range: $768,701 and up – 37% tax

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• Income range: $0 to $12,400 – 10% tax
• Income range: $12,401 to $50,400 – 12% tax
• Income range: $50,401 to $105,700 – 22% tax
• Income range: $105,701 to $201,775 – 24% tax
• Income range: $201,776 to $256,225 – 32% tax
• Income range: $256,226 to $640,600 – 35% tax
• Income range: $640,601 and up – 37% tax

Who will benefit?

The new income tax rule are set to benefit Americans, who need to earn more before they fall into a higher tax bracket. For example, a single taxpayer earning $50,000 will need to pay 12% tax in 2026 as compared to 22% tax in 2025. This is likely to offer relief to the middle class.

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Senior taxpayers could additionally see another relief, thanks to a provision under the One Big Beautiful Bill Act that provides a temporary tax deduction of up to $6,000 for people aged 65 and older.

Standard deduction

The IRS has further increased the standard deduction for taxpayers. Here are the new rates:

• $32,200 for married couples filing jointly
• $24,150 in case of heads of households
• $16,100 for single filers or married individuals filing separately

The IRS will furlough nearly half of its workforce on Wednesday as part of the ongoing government shutdown, the tax agency said on its website.

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