The 2026 tax year will bring several important federal tax updates under the “One Big Beautiful Bill,” and now is a great time to understand how those changes may affect your financial strategy. Whether you're planning for retirement, managing income changes, or preparing for major financial decisions, having clarity on the new rules can help you stay ahead.
Updated 2026 Federal Income Tax Brackets
Here are the official income tax brackets for 2026:
• 10% for income up to $12,400 ($24,800 for married couples filing jointly)
• 12% for income over $12,400 ($24,800 for married couples filing jointly)
• 22% for income over $50,400 ($100,800 for married couples filing jointly)
• 24% for income over $105,700 ($211,400 for married couples filing jointly)
• 32% for income over $201,775 ($403,550 for married couples filing jointly)
• 35% for income over $256,225 ($512,450 for married couples filing jointly)
• 37% for income over $640,600 ($768,700 for married couples filing jointly)
Other Key Tax Changes for 2026
Beyond the income brackets, several additional adjustments may impact your planning:
• Higher standard deduction: $16,100 for single filers and $32,200 for married couples filing jointly.
• Earned Income Tax Credit:
Maximum credit increases to $8,231 for qualifying taxpayers with three or more children.
• Health FSA contribution limit:
Rising to $3,400 (a $100 increase from 2025).
• Federal estate tax exemption:
Increasing to $15 million per person (up from nearly $14 million in 2025).
Why Planning Ahead Matters
These changes will take effect in 2026 and apply to tax returns filed in early 2027. But the impact on your long-term strategy can begin now—especially if you anticipate income shifts, retirement, selling a business, or transferring assets in the coming years.
Small adjustments today can help you reduce taxes later, optimize retirement income, and improve the way your wealth is protected and passed on.
If you’d like to review how these updated brackets and limits may affect your financial plan, our team at Standard Equity is here to help. Contact us to schedule a conversation.