Married couples, take note: The $32,200 standard deduction in 2026 could shrink your taxable income before you even start itemizing now

Married couples filing jointly will be able to claim a $32,200 standard deduction for the 2026 tax year, up from $31,500 in 2025. Single taxpayers will get a deduction of $16,100, compared with $15,750 this year. The IRS announced these changes as part of its annual inflation adjustments, alongside tax provisions introduced by the One Big Beautiful Bill Act (OBBBA).

The changes will affect most 2026 tax returns filed in 2027. They cover income tax brackets, estate taxes, adoption credits and several benefits available to workers and employers.

Married couples get a higher deduction as IRS updates tax brackets

The higher standard deduction means married couples can subtract $32,200 from their income before calculating their federal income tax, assuming they qualify for the deduction. For example, a couple earning $80,000 could have $47,800 left before other applicable adjustments and deductions.


The IRS has also adjusted the income thresholds for federal tax brackets. The top rate remains 37% and applies to taxable income above $640,600 for single filers and $768,700 for married couples filing jointly.

The other rates remain 35% above $256,225 for single filers and $512,450 for joint filers; 32% above $201,775 and $403,550; 24% above $105,700 and $211,400; and 22% above $50,400 and $100,800, respectively. The 12% bracket applies above $12,400 for single filers and $24,800 for joint filers, while the 10% rate covers income up to those thresholds.

These rates are marginal, meaning taxpayers don't pay their highest rate on every dollar they earn. The revised thresholds change how income falls across the brackets.

Estate taxes, adoption credits and workplace benefits also change

The federal estate tax exclusion will rise to $15 million for people who die in 2026, up from $13.99 million in 2025. The maximum adoption tax credit will increase from $17,280 to $17,670, with up to $5,120 refundable.

Employers will also see a higher maximum childcare tax credit under the OBBBA. The limit rises from $150,000 to $500,000, or $600,000 for eligible small businesses. For qualifying workers, the maximum earned income tax credit for families with three or more children will increase to $8,231 from $8,046.

Other adjustments affect everyday workplace and healthcare benefits. The health flexible spending arrangement limit will rise to $3,400, while the maximum carryover allowed under eligible cafeteria plans will increase to $680.

For medical savings accounts, the deductible range for self-only coverage will be $2,900 to $4,400, with an out-of-pocket limit of $5,850. Family coverage will have a deductible range of $5,850 to $8,750 and an out-of-pocket limit of $10,700. The monthly limit for qualified transportation benefits will rise to $340.

Not every provision is changing. The annual gift tax exclusion will remain at $19,000 in 2026. Personal exemptions and certain other provisions previously adjusted for inflation will no longer receive those adjustments.