IRS Tax Brackets 2026: What Will the Standard Deduction Be for Married Couples Filing Jointly?
The IRS has officially released the updated tax brackets and standard deductions for 2026, and millions of Americans — especially married couples filing jointly — will see meaningful tax relief next year.
With inflation still influencing everyday expenses, the IRS’s annual adjustments are designed to protect taxpayers’ income from being pushed into higher brackets. Here’s a complete breakdown of what’s changing, who benefits, and how to prepare for the 2027 tax season.
The New Standard Deduction: $29,200 for Married Couples
For the 2026 tax year, the standard deduction — the fixed amount that reduces taxable income — has been raised to $29,200 for married couples filing jointly.
That’s an increase from $27,700 in 2025, meaning couples can now shield $1,500 more income from federal taxes next year.
Here’s how the new standard deductions compare across filing statuses:
- Married couples filing jointly: $29,200
- Single filers: $14,600
- Heads of household: $21,900
This adjustment is intended to offset inflation and provide a modest but meaningful tax break to American households, especially those with moderate incomes or growing family expenses.
Tip: If you typically itemize your deductions, it’s worth reviewing your expenses this year. With a higher standard deduction, it might make more sense to take the standard route and simplify your filing.
Updated Federal Tax Brackets for 2026
Along with the new deduction, the IRS has updated the federal tax brackets for 2026 to ensure taxpayers aren’t penalized by inflationary income growth.
For married couples filing jointly, the brackets are as follows:
| Tax Rate | Income Range |
|---|---|
| 10% | Up to $22,000 |
| 12% | $22,001 – $89,450 |
| 22% | $89,451 – $190,750 |
| 24% | $190,751 – $364,200 |
| 32% | $364,201 – $462,500 |
| 35% | $462,501 – $1,000,000 |
| 37% | Over $1,000,000 |
These brackets apply progressively, meaning different portions of your income are taxed at different rates.
For example, if your household earns $150,000, only the portion above $89,450 will be taxed at 22%, while the earlier portion falls under the 12% and 10% brackets.
Inflation Adjustments: Protecting Your Paycheck
Each year, the IRS uses the Consumer Price Index (CPI) to adjust tax brackets and deductions. These changes help prevent “bracket creep,” where inflation pushes taxpayers into higher tax rates even when their real income hasn’t increased.
For 2026, these adjustments reflect moderate inflation levels, providing some relief to households still facing elevated costs from the previous years.
“One Big Beautiful Bill”: New Deductions and Benefits
The 2026 updates also incorporate provisions from the “One Big Beautiful Bill,” a recent piece of legislation aimed at simplifying taxes and expanding relief for workers and retirees.
Key highlights include:
- Tax exemption on tips and overtime pay, providing direct relief to hourly and service industry employees.
- Additional deductions for older adults, helping retirees reduce their taxable income.
- Simplified filing rules for small businesses and freelancers, designed to cut red tape and encourage entrepreneurship.
These measures aim to modernize the U.S. tax system while offering tangible financial benefits to working Americans.
What These Changes Mean for Taxpayers
If you’re a married couple filing jointly, the new $29,200 standard deduction could mean a smaller tax bill or a larger refund, depending on your income and withholding strategy.
Those who usually itemize deductions—such as mortgage interest, property taxes, or charitable donations—should re-evaluate their approach for 2026. In many cases, the higher standard deduction will now yield greater savings and make filing easier.
It’s also worth remembering that tax credits like the Child Tax Credit and Earned Income Credit operate separately from deductions and can further reduce your overall tax liability.
Preparing for the 2027 Tax Season
Although these adjustments apply to 2026 income, it’s smart to start planning now. Here’s how to prepare effectively:
- Check your tax withholding: Use the IRS Tax Withholding Estimator to make sure your employer is withholding the correct amount.
- Adjust your W-4 form if necessary: If you received a large refund or owed a significant amount last year, adjust early to balance your tax payments.
- Track your deductible expenses: Even if you take the standard deduction, some credits or deductions may still apply to specific categories.
- Plan charitable giving and investments strategically: The timing of these actions can help reduce your overall taxable income.
Key Takeaways
- New standard deduction for 2026: $29,200 for married couples filing jointly
- Single filers: $14,600; Heads of household: $21,900
- Top tax rate (37%) applies to income over $1,000,000 for joint filers
- Additional deductions introduced for tips, overtime, and seniors
- Start planning early to take advantage of new credits and tax-saving opportunities
These changes mark one of the largest inflation-driven adjustments in recent years, reflecting the IRS’s effort to help taxpayers retain more of their earnings while keeping pace with rising costs of living.
FAQs About the 2026 IRS Tax Brackets and Deductions
Q1: 1. When do the new IRS tax brackets take effect?
Ans: They apply to income earned in 2026 and will affect tax returns filed in 2027.
Q2: 2. Should I still itemize my deductions?
Ans: With the higher standard deduction, most taxpayers will benefit more from not itemizing unless their deductible expenses exceed the threshold.
Q3: 3. Will my refund be larger in 2027?
Ans: It’s possible. If your income remains steady, the higher deduction and adjusted brackets could lower your taxable income and slightly increase your refund.
Q4: 4. What is the “One Big Beautiful Bill”?
Ans: It’s new legislation that expands tax deductions, including exemptions for tips, overtime, and added benefits for older adults.
Q5: 5. How can I estimate my 2026 taxes?
Ans: You can use the IRS Tax Withholding Estimator or consult a tax professional to calculate your liability based on the new 2026 brackets.