The IRS has announced new tax rates, credits and exclusions that will take effect in 2026. The changes may be good news for some taxpayers. The IRS adjusts tax brackets and rates based on inflation. The amendments to the Internal Revenue Code were made by Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA).   

IRS TAX RATES 

Reproduced below are the 2026 gift and estate tax figures published by the IRS, as in effect on October 9, 2025. These are followed by information on the new income tax brackets and rates applicable to income earned in 2026. Note: this information applies to the 2026 tax year, not to 2025 tax filings.  

Combined Gift and Estate Tax Exemption 

The estate tax credit and annual gift tax exclusion amount are going up. 

.14 Section 70106 of the OBBBA amends § 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for any decedent dying in calendar year 2026. The basic exclusion amount will be adjusted for inflation for taxable years beginning after December 31, 2026. 

Gift Tax Annual  Exclusion 

.42 Annual Exclusion for Gifts. (1) For calendar year 2026, the first $19,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year. 

Income Tax Rates 

2026 income tax rates for taxpayers who are married filing jointly are reproduced below.  

.01 Tax Rate Tables. For taxable years beginning in 2026, the tax rate tables under § 1 are as follows: 

TABLE 1 – Section 1(j)(2)(A) – Married Individuals Filing Joint Returns and Surviving Spouses 

If Taxable Income Is:             The Tax Is: 

Not over $24,800                   10% of the taxable income 

Over $24,800 but                   $2,480 plus 12% of 

not over $100,800                   the excess over $24,800 

Over $100,800 but                   $11,600 plus 22% of 

not over $211,400                  the excess over $100,800 

Over $211,400 but                 $35,932 plus 24% of 

not over $403,550                  the excess over $211,400 

Over $403,550 but                 $82,048 plus 32% of 

not over $512,450                  the excess over $403,550 

Over $512,450 but                 $116,896 plus 35% of 

not over $768,700                  the excess over $512,450 

Over $768,700                          $206,583.50 plus 37% of 

the excess over $768,700 

TABLE 3 – Section 1(j)(2)(C) – Unmarried Individuals (other than Surviving Spouses and Heads of Households) 

If Taxable Income Is:             The Tax Is: 

Not over $12,400                   10% of the taxable income 

Over $12,400 but                   $1,240 plus 12% of 

not over $50,400                   the excess over $12,400 

Over $50,400 but                   $5,800 plus 22% of 

not over $105,700                  the excess over $50,400 

Over $105,700 but                 $17,966 plus 24% of 

not over $201,775                  the excess over $105,700 

Over $201,775 but                 $41,024 plus 32% of 

not over $256,225                  the excess over $201,775 

Over $256,225 but                 $58,448 plus 35% 

of not over $640,600             the excess over $256,225 

Over $640,600                       $192,979.25 plus 37% of the excess  

over $640,600 

Standard Deduction for 2026 

For Single Filers = $16,100 (can increase by $2,050 if you are over 65) 

For Couples Filing Jointly = $32,200 (can increase by $1,650 each if over age 65) 

The above rates and other 2026 tax numbers are available here.