IRS Announces 2026 Inflation Adjustments: What Changes for Your Return
Standard deduction, tax brackets and retirement contribution limits all move up for the 2026 tax year. Here is what matters most for individuals and small businesses.
The IRS has released its annual inflation adjustments for the 2026 tax year. While the headline rates are unchanged, nearly every threshold moved, and a few of those shifts are large enough to change planning decisions before year end.
What changed
- The standard deduction increased for all filing statuses, which reduces the number of taxpayers who benefit from itemizing.
- Bracket thresholds moved up, so a modest raise may not push you into a higher marginal rate.
- Retirement plan contribution limits increased for 401(k), 403(b) and IRA accounts, including catch-up contributions for those age 50 and over.
What to do now
If you expect a bonus, an RSU vest or a property sale, review your withholding and estimated payments before the end of the year. Small adjustments made in December are far cheaper than penalties discovered in April.
If you are unsure how the new thresholds apply to your situation, schedule a short planning call and bring last year's return.
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