New income thresholds and deductions aim to protect families when filing taxes in 2026
The Internal Revenue Service has released its inflation-adjusted federal tax brackets for the 2025 tax year, which Americans will use when filing returns in 2026. The update reflects the IRS’s annual adjustment for inflation and raises income thresholds across all seven tax rates — from 10% to 37% — potentially shielding many households from higher taxes driven solely by rising wages and prices.
For millions of working families, including a large share of Latino households concentrated in middle-income brackets, these adjustments matter. Without them, inflation-driven pay increases could push taxpayers into higher brackets even when their purchasing power hasn’t truly improved — a phenomenon known as “bracket creep.”
According to the IRS, the top marginal rate of 37% will now apply only to single filers earning more than $626,350 and married couples filing jointly earning more than $751,600, up from lower thresholds in prior years. Standard deductions have also increased, further reducing taxable income for most filers.
2025 Federal Tax Brackets at a Glance
Single Filers
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10%: Up to $11,925
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12%: $11,926 to $48,475
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22%: $48,476 to $103,350
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24%: $103,351 to $197,300
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32%: $197,301 to $250,525
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35%: $250,526 to $626,350
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37%: Over $626,350
Married Filing Jointly
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10%: Up to $23,850
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12%: $23,851 to $96,950
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22%: $96,951 to $206,700
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24%: $206,701 to $394,600
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32%: $394,601 to $501,050
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35%: $501,051 to $751,600
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37%: Over $751,600
Tax policy analysts at organizations such as the Tax Foundation note that inflation indexing helps preserve fairness in the tax system, even though it does not reduce tax rates themselves. Financial platforms like NerdWallet emphasize that most taxpayers will still pay the same marginal rate — but on a slightly smaller share of their income.
The IRS advises taxpayers to review the new brackets early, especially families with multiple earners, self-employed workers, and those adjusting withholding after recent cost-of-living changes.
Official tables and guidance are available directly from the IRS at IRS.gov.
