India, Oct. 9 -- The IRS has announced new income tax brackets and standard deductions for 2026, adjusting for inflation in an effort to prevent 'bracket creep', when rising wages push taxpayers into higher tax brackets without an actual increase in purchasing power. On Thursday, the agency said that it is raising the income thresholds for each bracket, which apply to tax year 2026 for returns filed in 2027.

Americans will need to earn more before hitting higher tax brackets. For instance, a single filer earning $50,000 will fall under the 12% bracket in 2026, compared to 22% in 2025, offering some relief for middle-income earners.

The IRS raised standard deductions across the board:

$32,200 for married couples filing jointly

$24,150 ...