Tax Updates on the Horizon: What to Expect in 2026
(NEXSTAR) — Last week, Americans experienced a welcome financial shift as the Federal Reserve reduced interest rates for the first time in 2025, signaling the possibility of further cuts. This development may lead to additional economic support in the near future.
As autumn approaches, the IRS is poised to announce critical updates that will influence tax filing for the upcoming year. Historically, this includes adjustments to tax provisions, with over 60 changes made last year alone, and particularly noteworthy revisions to tax brackets.
While the existing tax brackets for 2025 are already established, the IRS has yet to unveil any adjustments for the 2026 tax year.
According to recent projections from Bloomberg Tax, it’s anticipated that all seven tiers of the IRS tax brackets could be adjusted next year. These brackets determine the taxable portion of your income after accounting for standard or itemized deductions.
Here’s what the forecasted changes might look like:
| Taxes Owed | If Your 2025 Taxable Income Exceeds: | 2026 Taxable Income Estimates: |
|---|---|---|
| 10% | $11,925 ($23,850 for married couples filing jointly) | $12,400 ($24,800 for married couples filing jointly) |
| 12% | $11,925 ($23,850 for married couples filing jointly) | $12,400 ($24,801 for married couples filing jointly) |
| 22% | $48,475 ($96,950 for married couples filing jointly) | $50,400 ($100,801 for married couples filing jointly) |
| 24% | $103,350 ($206,700 for married couples filing jointly) | $105,700 ($211,401 for married couples filing jointly) |
| 32% | $197,300 ($394,600 for married couples filing jointly) | $201,775 ($403,551 for married couples filing jointly) |
| 35% | $250,525 ($501,050 for married couples filing jointly) | $256,225 ($512,451 for married couples filing jointly) |
| 37% | $626,350 ($751,600 for married couples filing jointly) | $640,600 ($768,701 for married couples filing jointly) |
Source: Bloomberg Tax
It’s vital to note that these are merely projections; the IRS is expected to finalize updates to tax provisions by October or November. Should the brackets change, many could see an increase in their take-home pay in 2026.
Additionally, upcoming modifications for 2026 include innovative tax relief measures such as no taxation on tips and overtime earnings, alterations to the child tax credit, and a new tax deduction for seniors.
Mark your calendars: Tax payments for 2026 and 2027 will be due on April 15.