Many tax, expensing, and penalty figures are adjusted annually for cost-of-living increases. These adjustments reflect the average chained Consumer Price Index (CPI) for all-urban customers (C-CPI-U) for the 12-month period ending the previous August 31.
The August 2025 CPI summary has been released by the U.S. Bureau of Labor Statistics. Using the chained CPI for August 2025 (and the preceding 11 months), Thomson Reuters Checkpoint has calculated the 2026 indexed amounts for nearly 250 figures.
- For the income tax brackets, the standard deduction amounts, and a number of other individual items, see here.
- For transfer tax and foreign items, see here,
- For health, charitable, compliance, and other specialty items, see here,
- For civil penalties, see here
- For expensing and accounting method limitations, see here
Below are some highlights for 2026.
Tax rate schedules
The tax rate schedules for 2026 will be as follows.
For married individuals filing joint returns and surviving spouses:
- If taxable income is not over $24,800; the tax is 10% of taxable income
- If taxable income is over $24,800 but not over $100,800; the tax is $2,480.00 plus 12% of the amount over $24,800
- If taxable income is over $100,800 but not over $211,400; the tax is $11,157.00 plus 22% of the amount over $100,800
- If taxable income is over $211,400 but not over $403,550; the tax is $35,302.00 plus 24% of the amount over $211,400
- If taxable income is over $403,550 but not over $512,450; the tax is $82,048.00 plus 32% of the amount over $403,550
- If taxable income is over $512,450 but not over $768,700; the tax is $114,462.00 plus 35% of the amount over $512,450
- If taxable income is over $768,700; the tax is $206,583.50 plus 37% of the amount over $768,700
For single individuals (other than heads of households and surviving spouses):
- If taxable income is not over $12,400; the tax is 10% of taxable income
- If taxable income is over $12,400 but not over $48,475; the tax is $1,240.00 plus 12% of the amount over $12,400
- If taxable income is over $48,475 but not over $105,700; the tax is $5,800.00 plus 22% of the amount over $48,475
- If taxable income is over $105,700 but not over $201,775; the tax is $17,966.00 plus 24% of the amount over $105,700
- If taxable income is over $201,775 but not over $256,225; the tax is $41,024.00 plus 32% of the amount over $201,775
- If taxable income is over $256,225 but not over $640,600; the tax is $58,448.00 plus 35% of the amount over $256,225
- If taxable income is over $640,600; the tax is $192,979.25 plus 37% of the amount over $640,600
For heads of household:
- If taxable income is not over $17,700: the tax is 10% of taxable income
- If taxable income is over $17,700 but not over $67,450; the tax is $1,770.00 plus 12% of the excess over $17,700
- If taxable income is over $67,450 but not over $105,700; the tax is $7,740.00 plus 22% of the excess over $67,450
- If taxable income is over $105,700 but not over $201,750; the tax is $16,155.00 plus 24% of the excess over $105,700
- If taxable income is over $201,750 but not over $256,200; the tax is $39,207.00 plus 32% of the excess over $201,750
- If taxable income is over $256,200 but not over $640,600; the tax is $56,631.00 plus 35% of the excess over $256,200
- If taxable income is over $640,600; the tax is $187,031.50 plus 37% of the excess over $640,600
For marrieds filing separate returns:
- If taxable income is not over $12,400; the tax is 10% of taxable income
- If taxable income is over $12,400 but not over $50,400; the tax is $1,240.00 plus 12% of the excess over $12,400
- If taxable income is over $50,400 but not over $105,700; the tax is $5,800.00 plus 22% of the excess over $50,400
- If taxable income is over $105,700 but not over $201,775; the tax is $17,966.00 plus 24% of the excess over $105,700
- If taxable income is over $201,775 but not over $256,225; the tax is $41,024.00 plus 32% of the excess over $201,775
- If taxable income is over $256,225 but not over $384,350; the tax is $58,448.00 plus 35% of the excess over $256,225
- If taxable income is over $384,350; the tax is $103,291.75 plus 37% of the excess over $384,350
For estates and trusts:
- If taxable income is less than $3,300; the tax is 10% of taxable income
- If taxable income is over $3,300 but not over $11,700; the tax is $330.00 plus 24% of the excess over $3,300
- If taxable income is over $11,700 but not over $16,000; the tax is $2,346.00 plus 35% of the excess over $11,700
- If taxable income is over $16,000; the tax is $3,851.00 plus 37% of the excess over $16,000
Standard deductions
The basic standard deduction for 2026 will be:
- Joint return or surviving spouse: $32,200
- Single (not head of household or surviving spouse): $16,100
- Head of household: $24,150
- Married filing separate returns: $16,100
Earned income tax credit
For 2026, the maximum amount of earned income on which the earned income tax credit will be computed is $8,680 for taxpayers with no qualifying children, $13,020 for taxpayers with one qualifying child, and $18,290 for taxpayers with two or more qualifying children.
For 2026, the phaseout of the allowable earned income tax credit will begin at $18,140 for joint filers with no qualifying children ($10,860 for others with no qualifying children), and at $31,160 for joint filers with one or more qualifying children ($23,890 for others with one or more qualifying children).
The amount of disqualified income (generally investment income) a taxpayer may have before losing the entire earned income tax credit is $12,200 for 2026.
Refundable child credit
The child credit is refundable, subject to the limit described below, to the extent of the greater of:
- 15% of earned income above $2,500, or
- For taxpayers with three or more qualifying children, the excess of the taxpayer’s social security taxes for the tax year over his or her earned income tax credit for the year.
The refundable portion of the child tax credit for any qualifying child can’t exceed $2,200 for 2026.
Capital gains
For 2026, the capital gains tax rates will be as follows:
The 0% capital gains rate applies to adjusted net capital gain of up to:
- Joint returns and surviving spouses—$98,900
- Single filers and married taxpayers filing separately—$49,450
- Heads of household—$66,200
- Estates and trusts—$3,300
The 15% capital gains tax rate applies to adjusted net capital gain over the amount subject to the 0% rate, and up to:
- Joint returns and surviving spouses—$613,700
- Married taxpayers filing separately—$306,850
- Heads of household—$579,600
- Single filers—$545,500
- Estates and trusts—$16,250
The 20% capital gains tax rate applies to adjusted net capital gain over the above 15% maximum amounts.
Section 179 expensing
The amount that may be expensed under IRC § 179 for 2026 will be $2,560,000. For 2026, the expensing limit will be reduced when more than $4,090,000 of expensing-eligible property is placed in service. For sport utility vehicles not subject to the IRC § 280F limitation, the amount that can be expensed under IRC § 179 is $32,000.
Unified estate and gift tax exclusion amount
For gifts made and estates of decedents dying in 2026, the exclusion amount will be $15,000,000
Retirement-related inflation-adjusted items
- IRA contribution limit: $7,500; catch-up (age 50+): $1,100
- Deductible IRA MAGI phaseouts:
- Joint: $129,000–$149,000
- Single/HOH: $81,000–$91,000
- MFS: $0–$10,000
- Married, not active but spouse is: $242,000–$252,000
- Roth IRA MAGI phaseouts:
- Joint: $242,000–$252,000
- Single/HOH: $153,000–$168,000
- MFS: $0–$10,000
- Saver’s Credit AGI limits:
- Joint: 50% credit up to $48,500; 0% above $80,500
- HOH: 50% up to $36,375; 0% above $60,375
- Others: 50% up to $24,250; 0% above $40,250
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