The IRS has released the 2026 Federal Income Tax Brackets and Standard Deductions, as well as increases in long-term capital gains brackets and the earned income tax credit, among others. Other deductions and credits that were passed as part of July’s One Big Beautiful Bill (OBBB) also go into effect on January 1, 2026.
Standard Deductions
Standard deductions for 2026 are increased to:
- Single & Married, filing separately – $16,100
- Married, filing jointly – $32,200
- Head of Household – $24,150
Tax Brackets
Federal Marginal Income Tax Brackets were adjusted for inflation using the Chained Consumer Price Index (C-CPI), which measures the price levels of consumer goods and services.
The C-CPI is based on the idea that when prices of certain goods change, consumers will adjust their purchasing patterns by purchasing more of the items whose prices have declined and less of those items whose prices have increased.
Additional Tax Bracket information may be found here: https://taxfoundation.org/data/all/federal/2026-tax-brackets/
Child Tax Credits
In addition to the standard deduction changes, 2026 heralds in an increase in the Federal Child Tax Credit from $2,000 to $2,200 per qualifying child. The maximum refundable portion is $1,700. For those parents who are adopting in 2026, the Adoption Tax Credit is also increased – you can receive a maximum of $17,670, though the credit begins to phase out at $265,080 and dissolves completely at $305,080. The adoption credit also includes limitations, including a special needs exception. OBBB also made the adoption credit partially refundable, allowing parents to claim up to $5,000 in credits.
The Earned Income Tax Credit brackets were also increased, for those who qualify.
Additional Credits
For those who turn 65 in 2026, or those who already are over the age of 65, the new Senior Deduction is available. This deduction is, at maximum, $6,000, but phases out for those earning over $75,000 ($150,000 for married filing jointly).
Charitable contributions also receive a new general tax credit in 2026. Those who take the standard deduction are eligible to deduct up to $1,000 ($2,000 for joint filers). The contributions must be cash or check to any qualified charity and must be documented by items such as a bank statement, canceled check, or receipt from the charity that includes the name of the charity and the amount contributed.
Those who itemize are limited in the amount of charitable contribution they may claim. Contributions are deductible only if they exceed .5% of the individual’s adjusted gross income.