KEY POINTS

The IRS published inflation-adjusted tax brackets for 2026.

Overall changes reflect a 2.7% inflation level, slightly lower than current rate.

Changes made in the budget bill give taxpayers bigger personal deductions this year.

Persistent inflation continues to drive up the cost of basic necessities as well as a wide spectrum of goods and services.

But that metric could also help save you a few bucks depending on your income level, following the newly published results of the Internal Revenue Service’s annual, inflation-based adjustments to U.S. income tax brackets.

While new income bracket ranges will go into effect for the 2026 tax year, some tax changes stipulated in the federal tax-and-spending bill passed earlier this year will impact 2025 filings.

For 2026, the IRS

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