Summary
The IRS is introducing new tax brackets, standard deductions, and credits due to inflation adjustments and recent tax legislation. These changes will affect Americans' paychecks and taxes starting in 2026. Key provisions include benefits for seniors and tipped workers, and adjustments in tax withholding to boost take-home pay.
Key Facts
- The IRS is updating tax brackets and deductions starting in 2026.
- The changes stem from inflation adjustments and a recent law known as the One Big, Beautiful Bill Act.
- Some 2017 tax overhaul provisions became permanent under the recent law.
- New tax breaks include benefits for seniors and eliminating federal tax on tips.
- Updated deductions for 2026 include $31,500 for married joint filers and $15,750 for single filers.
- A new $6,000 deduction for seniors on Social Security income starts in 2025.
- The IRS released new 2026 withholding tables to adjust federal tax withholding from wages.
