Annual inflation adjustments announced for tax year 2026

The Internal Revenue Service has released its annual inflation adjustments for over 60 tax provisions for tax year 2026 — which will apply when returns are filed in 2027. Key changes include increased standard deduction amounts (for tax year 2026: $32,200 for married filing jointly; $16,100 for singles; $24,150 for heads of household). Bracket thresholds for the top 37% rate rise (e.g., singles above $640,600; married couples above $768,700). Other adjusted items include the maximum earned income tax credit, health FSAs, and estate exclusion. Read more from the Journal of Accountancy