The 2026 tax year will bring relevant adjustments approved by the IRS, particularly to the standard deduction and federal income tax brackets. These changes respond to inflation and to recent modifications introduced under the so-called One Big Beautiful Bill, and they may represent an opportunity to optimize your tax burden if properly planned. IRS+1

Increase in the Standard Deduction for 2026

For the 2026 tax year, the IRS has increased the standard deduction as follows: IRS+1

• Married Filing Jointly:
  The standard deduction increases to USD 32,200.
• Single filers and Married Filing Separately:
  The standard deduction will be USD 16,100.
• Head of Household:
  The standard deduction rises to USD 24,150.

In practical terms, this means a larger portion of income will be exempt from federal income tax, reducing the taxable base. For many taxpayers—especially those who do not itemize deductions—this adjustment may result in a lower overall tax liability.

Federal Tax Brackets Adjusted for Inflation

The IRS has also confirmed that, for the 2026 tax year, marginal tax rates remain unchanged, while the income thresholds for each tax bracket have been adjusted upward to reflect inflation. IRS+1

Federal tax rates continue to range up to 37%, but the income levels at which each rate applies have increased. For example, the highest marginal rate of 37% will apply to higher income thresholds than in the prior tax year, for both single filers and married couples filing jointly. IRS

This adjustment is designed to prevent inflation from pushing taxpayers into higher tax brackets without a real increase in purchasing power—a phenomenon known as “bracket creep.”

What Do These Changes Mean for Tax Planning?

Taken together, the increase in the standard deduction and the expansion of tax bracket thresholds produce several important effects:

• More income protected by the standard deduction
• Lower likelihood that a moderate salary increase will place you in a higher tax bracket
• Greater need for personalized analysis, especially for taxpayers with complex income structures, investments, or multiple sources of revenue

For investors, business owners, and professionals with a higher tax burden, these adjustments may create opportunities to revisit compensation strategies, retirement plan contributions, and income-deferral decisions.

At ACMM Consulting, we continue to closely monitor IRS updates and leverage our expertise to help clients minimize the impact of this situation on their tax obligations and fiscal planning.
For personalized guidance, contact us via WhatsApp al +1 (305) 924-2374 or email us at info@acmmconsulting.com.

Official Source
IRS – “IRS releases tax inflation adjustments for tax year 2026, including amendments from the One Big Beautiful Bill”

The information contained in this article is for general informational purposes only ACMM Consulting, Inc. is not responsible for any decisions made by readers without proper professional advice. Each business situation is unique and requires individualized analysis.