Summary
The IRS has announced changes to tax rules for the 2026 tax year, affecting deductions, tax credits, and income thresholds. These changes will impact millions of Americans when they file their tax returns in 2027.
Key Facts
- The standard deduction for married couples filing jointly in 2026 will increase to $32,200.
- Single filers will have a standard deduction of $16,100, while heads of household can deduct $24,150.
- The top marginal tax rate remains at 37%, but income thresholds for this and other tax brackets have shifted upward.
- The federal estate tax exclusion amount rises to $15 million for 2026.
- Adoption tax credit increases to a maximum of $17,670, with $5,120 potentially refundable.
- The child care tax credit for employers increased from a cap of $150,000 to $500,000, or $600,000 for some small businesses.
- The Earned Income Tax Credit for families with three or more children increases to a maximum of $8,231.
- Several deductions and benefits, such as health care-related accounts, are adjusted for inflation.
