Americans’ take-home pay in 2026 is expected to tick up slightly because the IRS is raising the standard deduction and adjusting tax brackets for inflation, which can lower many workers’ taxable income. The piece explains how these changes, along with updated withholding rules, may leave some people with a bit more in each paycheck, even without a raise.
Key takeaways:
-
The standard deduction for 2026 will increase, reducing the amount of income subject to federal income tax and potentially lowering tax bills for many filers.
-
The IRS is shifting the income thresholds for all seven tax brackets upward, allowing people to earn more before higher rates apply, which can translate into modestly higher net pay if their income stays flat.
-
Because employers adjust withholding to reflect these new thresholds and deductions, many workers may see a small bump in each paycheck rather than a single large benefit at tax-filing time.
“If the standard deduction increases, that means that they’re going to have a lower taxable income, which means that they’ll pay less taxes,” says Bruckner.
Read the article.
.png){kind=logo}
