The IRS has set the 2026 tax brackets and standard deductions, keeping seven rates in place while shifting the income thresholds upward to account for inflation and to reflect changes enacted in the One Big Beautiful Bill Act, meaning many paychecks will see modest relief in 2026 and the top rate still bites only above very high incomes.
For most households, the standard deduction rises again, which will reduce taxable income before the brackets even apply, and high earners will continue to face a 37% top rate but at slightly higher income thresholds than in 2025.
