(NEXSTAR) — The IRS announced last month that it was again changing federal tax brackets thanks to inflation, giving taxpayers a higher standard deduction and earnings thresholds.

There's a second, albeit smaller, benefit to the tax code updates (which impact 2026 and our tax filings in 2027): a slightly larger paycheck, even without a raise.

It has to do with the standard deduction, which reduces the amount of your income on which you are taxed. That threshold is set to rise by about 2.2%, a smaller jump than what we saw in 2023, 2024, and 2025.

IRS releases 2026 tax brackets: Where do you land?

Nonetheless, the small increase could still put more money in your pocket.

The tax code update is meant to help cut back on "bracket creep," which occurs when inflation moves you into a highe

See Full Page