The new year means new IRS brackets are set to be updated, thanks to rises in inflation. Every year, the Internal Revenue Service (IRS) adjusts its income tax brackets to account for rises in inflation, ensuring that income tax brackets continue to accurately reflect the income realities of citizens. This is to ensure that a ‘bracket creep’ effect does not occur, keeping incomes congruent with relevant tax brackets, which are fair and equitable for all residents across different income levels.
New IRS brackets prevent a “bracket creep”
Income tax is a federal requirement that the majority of income-earning residents must pay. Even if you do not meet the income tax thresholds to pay tax, all income-earning individuals must, at the very least, file their taxes annually. Income taxes are the core income-generating source used to fund governmental operations, such as education, healthcare, road infrastructure, and social services.
New IRS brackets are announced in order to prevent what is referred to as bracket creep. This happens when inflation pushes residents into higher income tax brackets despite their income not actually increasing in any real buying power. When this happens, residents are effectively paying higher taxes than they should be. When your income rises in relation to inflation, while you may be receiving a higher monetary income, the actual effect of the income increase is insignificant, as the increase in income is supposed to be relative to a higher cost-of-living.
To stay on top of this, new IRS brackets are introduced annually to ensure that taxpayers are not unfairly taxed. These tax adjustments ensure that taxpayers are not unfairly burdened with taxes that they cannot afford, ensuring the continuation of an equitable income tax system. On top of federal tax obligations, which all income-earning citizens are obligated to take part in, you may also be subject to state income tax. However, not all states require residents to pay state income tax, and those that do also have their own distinct tax payment and reduction policies.
Take note of the new IRS brackets for 2026
In an official statement from the IRS on tax year 2026, brand new income tax brackets were announced on October 9, 2025, outlining what tax brackets will apply for the 2026 fiscal year for returns filed in 2027. The following marginal rate changes have been announced, as per the IRS website:
- 35% for incomes over $256,225 ($512,450 for married couples filing jointly).
- 32% for incomes over $201,775 ($403,550 for married couples filing jointly).
- 24% for incomes over $105,700 ($211,400 for married couples filing jointly).
- 22% for incomes over $50,400 ($100,800 for married couples filing jointly).
- 12% for incomes over $12,400 ($24,800 for married couples filing jointly).
The lowest rate is 10% for incomes of single individuals with incomes of $12,400 or less and $24,800 for married couples filing jointly. The top tax rate is set to remain 37% for single filers with incomes greater than $640,600 and greater than $768,700 for married couples filing jointly.
Keep updated on changes by the IRS regarding your tax obligations
As a law-abiding citizen, it is critical that you ensure that you continue to keep yourself informed and updated on what your necessary tax obligations are, and if there are any changes and updates that may affect you. For example, the recent passing of the ‘One Big Beautiful Bill’ has brought in a host of new tax obligations and reductions for taxpayers.
On top of federal tax changes, some citizens must also keep themselves informed on any changes and updates regarding their state income tax obligations. State income tax obligations and policies are relative to local authorities, meaning it is necessary that you associate yourself with the relevant communication channels, which will keep you dually informed on important information you may need, including key dates and deadlines for when you must file your state income tax.
Disclaimer: This content is informational only and does not supersede or replace the SSA’s or IRS’s own publications and notices. Always verify any specific dates and amounts by following the direct links in our article to SSA.gov or IRS.gov, or by consulting your local SSA field office or tax professional.
