2026 Tax Projections: Brackets, Rates & Key Changes
Each year, the Internal Revenue Service (IRS) adjusts federal income tax brackets for inflation. For 2026, Wolters Kluwer has released early projections based on inflation data published in September 2025.
These 2026 tax projections include expected changes to income tax brackets, standard deductions, tax credits, and exclusions. The Internal Revenue Service (IRS) will issue official numbers later in the year. These early projections help taxpayers understand what to expect when filing taxes in 2026. Even slight adjustments to tax rates can influence your total tax liability.
Even slight adjustments to tax rates can influence your total tax liability. Changes affect how much income faces taxation and how deductions and credits apply. They also determine which strategies work best for savings and estate planning. Planning ahead now gives business owners, executives, and individuals time to adjust tax strategies before year-end.
To help clients, prospects, and others, WhippleWood CPAs has summarized the key details below.
2026 Income Tax Brackets
OBBBA signed in July 2025, preserved current tax brackets. This tax law prevented a return to pre-2017 tax rates. The IRS adjusts these income tax brackets annually for inflation.
“Wolters Kluwer projects 2026 federal income tax brackets will rise between 2.2% and 4.0% from 2025 levels. For example, the 10% bracket for married couples filing jointly will top out at $24,800, up from $23,850 in 2025. Similar increases apply to other filing statuses.
Below are the projected 2026 tax brackets and tax rates for single filers and married couples filing jointly:
Single Filers – 2026 Tax Brackets
- 10% up to $12,400
- 12% over $12,400 and up to $50,400
- 22% over $50,400 and up to $105,700
- 24% over $105,700 and up to $201,775
- 32% over $201,775 and up to $256,225
- 35% over $256,225 and up to $640,600
- 37% over $640,600
Married Filing Jointly – 2026 Tax Brackets
- 10% up to $24,800
- 12% over $24,800 and up to $100,800
- 22% over $100,800 and up to $211,400
- 24% over $211,400 and up to $403,550
- 32% over $403,550 and up to $512,450
- 35% over $512,450 and up to $768,700
- 37% over $768,700
Understanding how these tax rates apply to your adjusted gross income helps you calculate your projected tax bill for 2026.
Standard Deduction
The standard deduction has changed several times recently. The standard deduction started at $30,000 for married couples filing jointly in 2025. Congress later raised this to $31,500, applying the increase to the entire 2025 tax year.
2026 Tax Projections show another increase:
- Married couples filing jointly: $32,200
- Single filers: $16,100
- Heads of household: $24,150
These higher deduction amounts reduce taxable income and may lower your overall tax bill.
Alternative Minimum Tax
The Alternative Minimum Tax (AMT) is a separate tax calculation system. This system designed to ensure higher-income taxpayers pay a minimum level of tax. This applies even if deductions or credits reduce regular tax liability.
The AMT exemption shields a portion of adjusted gross income from this calculation, much like a standard deduction. For 2025, the exemption is $137,000 for married couples filing jointly and $88,100 for single filers and heads of household.
2026 Tax Projections show modest increases:
- Married filing jointly: $140,200
- Single and head of household filers: $90,100
These adjustments help taxpayers avoid alternative minimum tax exposure as incomes rise with inflation.
Retirement Plans: IRA Contribution Limits
Roth IRA and Traditional IRA contribution limits will increase to $7,500 in 2026, up from $7,000 in 2025.
Key 2026 IRA Details:
Contribution Limits:
- Standard IRA contribution: $7,500 (2026 projection)
- Catch-up contribution (ages 50+): $1,100 (up from $1,000 in 2025)
- Combined limit applies across Roth and Traditional IRAs
The IRA deadline for contributions for the 2026 tax year is April 15, 2027. The contribution deadline for Roth IRA accounts follows the same schedule.
Income Phaseout Ranges:
Roth IRA Income Limits (2026 Projections):
- Single taxpayers: $153,000 to $168,000 (modified adjusted gross income)
- Married couples filing jointly: $242,000 to $252,000
Traditional IRA Deduction Limits (with workplace plan coverage):
- Single filers:Phaseout begins at $81,000
- Married filing jointly (both covered): Phaseout begins at $129,000
- Married filing jointly (one spouse covered): Phaseout begins at $242,000
Understanding these retirement plan limits helps you maximize tax benefits while planning for the future.
401(k) and Other Plans:
The employee deferral limit for 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan is $23,500 for 2025. The Internal Revenue Service has not yet released 2026 projections for these retirement plans.
Estate and Gift Taxes
The estate and gift tax exclusion is $13.61 million per individual for 2025 and will rise to $15 million in 2026 under OBBBA.
The annual gift exclusion remains at $19,000 for both 2025 and 2026, with no increase projected until 2027.
Other Key Tax Provisions
Foreign Earned Income Exclusion
The foreign earned income exclusion (FEIE) is projected at $132,900 for 2026, up from $130,000 in 2025. This generally applies to U.S. citizens living abroad who may exclude foreign earnings up to this limit. The IRS adjusts this amount each year for inflation.
Student Loan Interest Deduction
The student loan interest deduction allows taxpayers to deduct up to $2,500 of interest annually when filing taxes.
2026 Phaseout Ranges:
- Married couples filing jointly: Begins at $175,000 modified adjusted gross income (up from $170,000 in 2025)
- Single filers: Begins at $85,000 (unchanged from 2025)
Adoption Credit
The IRS will adjust the adoption credit to $17,600 for 2026, up from $17,280 in 2025.
Tax Planning Opportunities
Although the IRS has not yet finalized 2026 tax figures, current projections give individuals a chance to plan ahead. Even small changes to brackets, deductions, or contribution limits may create opportunities to adjust strategies before year-end.
Choosing whether to take a year-end bonus in December or January could affect your total tax liability. The marginal tax rate might stay the same. However, extra income could interact with deduction phaseouts, credit thresholds, or alternative minimum tax exposure.
The same timing considerations apply to charitable giving, large deductions, and retirement plan contributions. Understanding how these decisions affect your 2026 tax bill helps optimize your tax calculation.
Contact Us
The Internal Revenue Service (IRS) has not yet finalized these figures. However, they provide a useful starting point for year-end tax planning.
Taking time now to review thresholds and evaluate strategies helps taxpayers stay ahead when filing taxes. Preparing for potential changes can reduce your total tax liability.
WhippleWood CPAs specializes in tax planning and accounting services for Denver-area businesses and individuals. Our team provides personalized tax advice to help you navigate 2026 tax brackets. We help you maximize retirement plan contributions and minimize your total tax liability.
For assistance with your 2026 tax strategy, contact WhippleWood CPAs at 303-989-7600 or schedule a consultation here. We look forward to discussing your tax planning needs.
This article is for information purposes only and does not constitute tax advice.
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About the Author
Steve Barkmeier CPA
It’s rare for even the largest accounting firms to be able to offer the expertise Steve brings to our clients. After 30 years of leadership positions in corporate tax departments at billion-dollar companies, including serving as the Vice President of Tax at the second largest newspaper chain in the United States, he joined WhippleWood in 2015.
