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IRS Adjusts 2026 Federal Income Tax Brackets for Inflation
IRS Adjusts 2026 Federal Income Tax Brackets for Inflation
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BTCCSquare news:
The IRS announced updated federal income tax brackets for 2026 on October 9, 2025, reflecting a 2.7% average inflation adjustment using the Chained Consumer Price Index. Single filers now face a 10% rate on income up to $12,400, while the top 37% bracket applies to earnings above $640,600. Married couples filing jointly reach the highest bracket at $768,700.
These adjustments aim to prevent 'bracket creep,' where inflation artificially pushes taxpayers into higher tax brackets without real income growth. The changes maintain progressivity while accounting for rising living costs across all income levels.
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