The Internal Revenue Service announced its annual inflation-adjusted changes to tax brackets, annual exclusions for gift and estate taxes, FSA limits, and more for 2026. We’ve provided a few highlights of the release and a summary of the financial facts and figures you need to know.
Standard Deductions
- The standard deduction for married couples filing jointly for tax year 2026 rises to $32,200, an increase of $700 from tax year 2025.
- For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for 2026, an increase of $350 from 2025.
- For heads of households, the standard deduction will be $24,150 for tax year 2026, an increase of $525 from the amount for tax year 2025.
Estate Tax Credits
- Estates of decedents who die during 2026 have a basic exclusion amount of $15,000,000, increased from $13,990,000 for estates of decedents who died in 2025.
Annual Exclusion for GiftS
- The annual exclusion for gifts remains at $19,000 for calendar year 2026.
Marginal Rates
Tax rates remain unchanged; however, the income limit for each tax bracket has changed, meaning more of your income may fall in a lower tax bracket.
In addition to tax savings, the IRS also adjusted the contribution limits to retirement accounts, Health Savings Accounts, and Flexible Spending Accounts. Click the image below to view and save a consolidated summary of all the changes and limits individuals and business owners need to know for 2026.
Keeping up with the constant tax changes can be difficult and time consuming. Start planning today so you can keep as much of your hard earned dollars as possible!
More detail on all the IRS tax inflation adjustments for 2026 can be found at www.irs.gov.
Recently, Heritage Financial CEO Sammy Azzouz joined CBS News Boston to break down the key updates and explain what they could mean for taxpayers. Watch it here:
