The IRS has provided relief under Code Sec. 7508A for persons determined to be affected by the terroristic action in the State of Israel throughout 2024 and 2025. Affected taxpayers have until Septe...
The IRS has released the applicable terminal charge and the Standard Industry Fare Level (SIFL) mileage rate for determining the value of noncommercial flights on employer-provided aircraft in effect ...
The IRS Independent Office of Appeals has launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive to taxpayers. Under the new PAM pilot, cases will be reassigned to an A...
The IRS has reminded taxpayers that emergency readiness has gone beyond food, water and shelter. It also includes safeguarding financial and tax documents. Families and businesses should review their ...
Effective October 1, 2025, the city of Cleveland imposes a new local lodgings tax at a rate of 4%. The city's first lodgings tax return is due on November 20, 2025 for the month of October 2025. Loca...
The IRS has released the annual inflation adjustments for 2026 for the income tax rate tables, plus more than 60 other tax provisions. The IRS makes these cost-of-living adjustments (COLAs) each year to reflect inflation.
The IRS has released the annual inflation adjustments for 2026 for the income tax rate tables, plus more than 60 other tax provisions. The IRS makes these cost-of-living adjustments (COLAs) each year to reflect inflation.
2026 Income Tax Brackets
For 2026, the highest income tax bracket of 37 percent applies when taxable income hits:
- $768,700 for married individuals filing jointly and surviving spouses,
- $640,600 for single individuals and heads of households,
- $384,350 for married individuals filing separately, and
- $16,000 for estates and trusts.
2026 Standard Deduction
The standard deduction for 2026 is:
- $32,200 for married individuals filing jointly and surviving spouses,
- $24,150 for heads of households, and
- $16,100 for single individuals and married individuals filing separately.
The standard deduction for a dependent is limited to the greater of:
- $1,350 or
- the sum of $450, plus the dependent’s earned income.
Individuals who are blind or at least 65 years old get an additional standard deduction of:
- $1,650 for married taxpayers and surviving spouses, or
- $2,050 for other taxpayers.
Alternative Minimum Tax (AMT) Exemption for 2026
The AMT exemption for 2026 is:
- $140,200 for married individuals filing jointly and surviving spouses,
- $90,100 for single individuals and heads of households,
- $70,100 for married individuals filing separately, and
- $31,400 for estates and trusts.
The exemption amounts phase out in 2026 when AMTI exceeds:
- $1,000,000 for married individuals filing jointly and surviving spouses,
- $500,000 for single individuals, heads of households, and married individuals filing separately, and
- $104,800 for estates and trusts.
Expensing Code Sec. 179 Property in 2026
For tax years beginning in 2026, taxpayers can expense up to $2,560,000 in section 179 property. However, this dollar limit is reduced when the cost of section 179 property placed in service during the year exceeds $4,090,000.
Estate and Gift Tax Adjustments for 2026
The following inflation adjustments apply to federal estate and gift taxes in 2026:
- the gift tax exclusion is $19,000 per donee, or $194,000 for gifts to spouses who are not U.S. citizens;
- the federal estate tax exclusion is $15,000,000; and
- the maximum reduction for real property under the special valuation method is $1,460,000.
2026 Inflation Adjustments for Other Tax Items
The maximum foreign earned income exclusion amount in 2026 is $132,900.
The IRS also provided inflation-adjusted amounts for the:
- adoption credit,
- earned income credit,
- excludable interest on U.S. savings bonds used for education,
- various penalties, and
- many other provisions.
Effective Date of 2026 Adjustments
These inflation adjustments generally apply to tax years beginning in 2026, so they affect most returns that will be filed in 2027. However, some specified figures apply to transactions or events in calendar year 2026.
IR-2025-103