2026 IRS Inflation Adjustments

The IRS just published their 2026 inflation adjusted numbers.

Some notes:

1. Standard Deduction

In 2025, the standard deduction for a single taxpayer is $15,750 ($31,500 for married filing jointly). In 2026, the standard deduction is increasing by $350: $16,100 (single), $32,200 (mfj)

2. Brackets

2025 brackets:

10% for income $11,925 or less ($23,850 MFJ)
12% for income over $11,925 ($23,850)
22% for income over $48,475 ($96,950)
24% for income over $103,350 ($206,700)
32% for income over $197,300 ($394,600)

In 2026, the ranges are:

10% for income $12,400 or less ($24,800 MFJ)
12% for income over $12,400 ($24,800)
22% for income over $50,400 ($100,800)
24% for income over $105,700 ($211,400)
32% for income over $201,775 ($403,550)

or ~4% increase in the income ranges.

3. Capital Gains Tax

For 2026, 0% capital gains tax will apply if your taxable income is/less than $49,450 (single) or $98,900 (mfj)

4. Retirement contributions limits

The official figures haven’t been reported yet, but estimates indicate that Roth IRA contribution limits will increase by $500, and 401(k)/403(b) limits will increase by $1,000.

5. Annual gifts

The annual exclusion for gifts is not increasing for tax year 2026.

6. HSA

For 2026, participants who want to contribute to an HSA must have a deductible that is not less than $2,900 (a $50 increase), but not more than $4,400 (an increase of $100). The HSA contribution limits for 2026 are $4,400 for self-only and $8,750 for family.

7. Others

Estates of decedents who die during 2026 have an estate tax exclusion amount of $15M, up from a total of $13.99M from 2025.

For tax year 2026, the foreign earned income exclusion is $132,900 up from $130,000 for tax year 2025.