IRS Tax Changes for 2026
The Internal Revenue Service announced its annual inflation-adjusted changes to tax brackets, annual exclusions for gift and estate taxes, FSA limits, and more for 2026. We’ve provided a few highlights of the release and a summary of the financial facts and figures you need to know.
Standard Deductions
- The standard deduction for married couples filing jointly for tax year 2026 rises to $32,200, an increase of $700 from tax year 2025.
- For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for 2026, an increase of $350 from 2025.
- For heads of households, the standard deduction will be $24,150 for tax year 2026, an increase of $525 from the amount for tax year 2025.
Estate Tax Credits
- Estates of decedents who die during 2026 have a basic exclusion amount of $15,000,000, increased from $13,990,000 for estates of decedents who died in 2025.
Annual Exclusion for Gifts
- The annual exclusion for gifts remains at $19,000 for calendar year 2026.
Marginal Rates
Tax rates remain unchanged; however, the income limit for each tax bracket has changed, meaning more of your income may fall in a lower tax bracket.
| Tax Rate | Single Filers | Married Couples Filing Jointly |
|---|---|---|
| 10% | $12,400 or less | $24,800 or less |
| 12% | more than $12,400 | more than $24,800 |
| 22% | more than $50,400 | more than $100,800 |
| 24% | more than $105,700 | more than $211,400 |
| 32% | more than $201,775 | more than $403,550 |
| 35% | more $256,225 | more than $512,450 |
| 37% | more than $640,600 | more than $768,700 |
In addition to tax savings, the IRS also adjusted the contribution limits to retirement accounts, Health Savings Accounts, and Flexible Spending Accounts. You can find more information at IRS.gov.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment or tax advice from Savant. Please consult your investment or tax professional regarding your unique situation.