Tax Relief Incoming as IRS Boosts 2026 Standard Deduction, Tax Bracket

Your Wallet Just Got a Government-Backed Upgrade

The IRS finally throws taxpayers a bone—standard deductions and brackets climb in 2026. About time the tax code acknowledged inflation isn't just a theoretical concept.

Breaking Down the Numbers

Standard deduction increases mean more income stays in your pocket before the taxman comes knocking. Tax bracket adjustments prevent salary raises from pushing you into higher tax zones—unless you're in that sweet spot where accountants earn their keep.

Why This Matters Beyond April 15

More take-home pay could mean more investment capital flowing into markets. Crypto portfolios might see fresh inflows as disposable income gets, well, more disposable.

Because nothing says 'financial innovation' like waiting for bureaucratic permission to keep more of your own money.

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First, the agency raised the standard deduction for single filers to $16,100 from $15,750 and for married couples filing jointly to $32,200 from $31,500. Heads of households will receive a standard deduction of $24,150, up from $23,625.

2026 Tax Changes Include Higher Brackets and Credits

The IRS also raised the income thresholds for each marginal tax bracket. For example, single filers will be taxed at a 22% rate for income in the $50,401-$105,700 range, up from the prior $48,476-$103,350 range. Married couples filing jointly will be taxed at 12% for income in the $24,801-$100,800 range, up from $23,851-$96,950.

Other changes include higher estate tax credits, long-term capital gains tax brackets, and employer-provided childcare tax credit. Personal exemptions and itemized deduction policies remain unchanged.