Professor Bruckner explains that because the Internal Revenue Service (IRS) adjusts federal income-tax brackets and the standard deduction each year for inflation, many Americans will be able to earn a bit more before being pushed into a higher tax rate—which means modest tax relief in 2026 filing year.
Brackets & standard deduction increased for 2026. The Internal Revenue Service raised the income thresholds for all seven federal tax brackets — and increased the standard deduction (e.g. to $16,100 for singles; $32,200 for married filing jointly) — helping many taxpayers make a bit more before hitting higher rates.
Tax is calculated in layers, not all at top rate. Even if your income hits the highest bracket, the higher rate only applies to income above that threshold — income below remains taxed at lower rates.
Inflation-adjustments prevent “bracket creep.” Because thresholds are shifted each year, modest income increases don’t automatically push people into a higher bracket — a key safeguard for taxpayers.
“The federal tax agency … announced the new brackets … which are typically adjusted each year to account for inflation," says Bruckner.Read here.