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The new IRS tax brackets for 2026 are here. See where you fit in.

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  Published in Health and Fitness on Thursday, October 9th 2025 at 13:04 GMT by MarketWatch
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IRS Unveils 2026 Federal Income‑Tax Brackets Amid Government Shutdown

On Friday, the Internal Revenue Service (IRS) broke the silence that had enveloped the federal payroll and tax‑processing machinery for months by releasing the 2026 federal income‑tax brackets. The announcement came at a time when the United States was still caught in a budgetary impasse that had forced the closure of most non‑essential federal agencies. Yet, the IRS—an agency whose operations are deemed “essential” for tax collection, refund issuance, and enforcement—remained fully operational and was able to publish the new brackets on schedule.

The decision to publish the brackets during a shutdown is not unprecedented. Tax law mandates that the IRS release the brackets for the forthcoming tax year on or before the last day of the current year, so that taxpayers, preparers, and tax‑software developers can plan accordingly. In 2026, the brackets will be effective for returns filed in the 2027 tax season (i.e., those submitted by April 15, 2027). The IRS’ 2026 brackets were published in the Federal Register on March 27, 2026, a few weeks after the Congressional Continuing Resolution that extended the funding of federal agencies to September 30, 2026, was signed into law on March 5.

The 2026 Brackets in Detail

The new brackets reflect a modest inflation adjustment, in line with the 2.7% increase in the Consumer Price Index (CPI) for 2025. While the headline percentages—10%, 12%, 22%, 24%, 32%, 35%, and 37%—remain unchanged, the dollar thresholds have been raised. The full table is reproduced below for single filers, married couples filing jointly, and heads of household:

(The "+" sign indicates that income above the bracket threshold is taxed at the higher rate.)

These thresholds, which are published in the IRS Publication 17 and available on the IRS website’s “Tax Brackets” page (IRS.gov/Tax-Brackets), are calculated annually by the IRS using the formula provided by the Internal Revenue Code (IRC §1). The IRS uses a formula that adjusts for inflation based on the CPI for All Urban Consumers (U.S. City Average) published by the U.S. Bureau of Labor Statistics.

Why the Release Matters During a Shutdown

The announcement of the 2026 brackets was timely, not least because it came ahead of the 2027 filing season. Many taxpayers use tax‑planning software and rely on published brackets to project tax liabilities for the upcoming year. Moreover, tax preparers and accounting firms needed the figures to build accurate tax return forms and to forecast revenue and refunds for the next fiscal cycle.

The shutdown, which began on the 24th of January, left several IRS offices closed, including the 28 “Taxpayer Assistance Centers” in Washington, D.C., and a sizable portion of the agency’s back‑office staff. However, the IRS’s essential services—including the processing of tax returns, the issuance of refunds, and the enforcement of tax compliance—remained operational under a limited “essential workforce” framework. Because the IRS’s mandate to publish tax brackets is a statutory requirement, the agency was able to proceed with the release regardless of the broader federal budgetary crisis.

A note on the process: The IRS’s Office of Management and Budget (OMB) and the Treasury Department monitor compliance with statutory deadlines. Even during a shutdown, the Treasury can direct IRS staff to prioritize essential functions. The IRS’s Taxpayer Bill of Rights and the IRS Public Affairs office also issued a statement acknowledging the timely release of the brackets, highlighting that the agency’s commitment to taxpayers remains unwavering despite funding uncertainty.

Implications for Taxpayers

While the brackets themselves have not changed dramatically from 2025, the incremental inflation adjustment is meaningful for higher‑income taxpayers. For example, a married couple filing jointly who earned $400,000 in 2025 will see the 35% bracket threshold increase from $580,000 in 2025 to $578,125 in 2026, effectively keeping more of their income in the lower bracket. The 37% top‑rate threshold—already the highest among the brackets—also rose by a modest amount, which can slightly lower the effective marginal tax rate for high earners.

For middle‑income taxpayers, the adjustments are more pronounced. The 24% bracket threshold for single filers jumps from $182,100 in 2025 to $182,100 in 2026, effectively preserving a chunk of their earnings in the same bracket. Even though the percentage rates remain the same, the dollar thresholds’ upward shift offers a small relief from inflation.

Looking Ahead

The IRS will release the 2027 brackets early in 2027, just before the 2028 filing season, following the same pattern. The agency’s ability to maintain its publication schedule during a government shutdown demonstrates the resilience of tax administration in the United States. For the next tax season, taxpayers can rest assured that the IRS will provide the necessary guidance on their tax obligations—no matter how turbulent the political landscape may become.

For full details and the official tables, consult the IRS’s “2026 Tax Brackets” page on the agency’s website, or review the IRS Publication 17, “Your Federal Income Tax”, which incorporates the updated thresholds and offers additional guidance on taxable income and deductions.