Keywords: tax inflation adjustments 2026, standard deduction increase, IRS tax brackets 2026, estate tax exclusion 2026

Each year, the IRS adjusts tax limits for inflation. Under the One Big Beautiful Bill, those adjustments were expanded for 2025 and 2026, impacting deductions, tax brackets, credits, and estate planning.

Standard Deduction Increases

For most taxpayers, this is the most noticeable change.

Tax Year 2025

• $31,500 — Married filing jointly

• $15,750 — Single / Married filing separately

• $23,625 — Head of household

Tax Year 2026

• $32,200 — Married filing jointly

• $16,100 — Single / Married filing separately

• $24,150 — Head of household

Higher standard deductions mean more income is shielded from tax, even if you don’t itemize.

2026 Federal Tax Brackets (Top Rates)

• 37% — over $640,600 (single) / $768,700 (MFJ)

• 35% — over $256,225 / $512,450

• 32% — over $201,775 / $403,550

• 24% — over $105,700 / $211,400

• 22% — over $50,400 / $100,800

• 12% — over $12,400 / $24,800

• 10% — up to $12,400 / $24,800

These adjustments help prevent “bracket creep” as wages rise.

Other Notable 2026 Adjustments

• AMT Exemption

  • $90,100 (single)

  • $140,200 (married filing jointly)

• Estate Tax Exclusion

  • $15,000,000 (up from $13,990,000 in 2025)

• Adoption Credit

  • $17,670 maximum

  • Up to $5,120 refundable

• Employer Childcare Credit

  • Increased to $500,000

  • Up to $600,000 for eligible small businesses

IRS Forms & Resources

• Form 1040

• https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill

• IRS Newsroom (2026 adjustments)

These changes apply automatically — no special election required.