WASHINGTON (NEXSTAR) — After the Federal Reserve’s recent decision to cut rates, Americans are hopeful that additional financial relief could be on the way, with potential changes to tax provisions and brackets announced in the fall. As we approach the end of the year, the IRS is expected to unveil updates that will impact the tax filing process for 2026, with estimates suggesting that tax brackets could be adjusted.
What Happened
Last week, the Federal Reserve cut interest rates for the first time this year, providing Americans with a sense of relief. But that isn’t the only change on the horizon. The IRS typically announces updates to tax brackets and provisions in the fall, which could affect your tax filing next year. According to Bloomberg Tax, projections indicate that all seven of the IRS’s tax brackets could see increases in 2026.
The tax brackets determine the portion of your income that will be taxed after applying the standard or itemized deductions. For 2026, Bloomberg’s report suggests that taxpayers could see the following increases:
| Tax Rate | 2025 Taxable Income (2026 Estimates) |
|---|---|
| 10% | $12,400 or less ($24,800 for married couples) |
| 12% | $12,400 ($24,800 for married couples) |
| 22% | $50,400 ($100,801 for married couples) |
| 24% | $105,700 ($211,401 for married couples) |
| 32% | $201,775 ($403,551 for married couples) |
| 35% | $256,225 ($512,451 for married couples) |
| 37% | $640,600 ($768,701 for married couples) |
What It Means for Taxpayers
While the 2026 projections are still tentative, a shift in these brackets could lead to lower taxes for many individuals, potentially increasing take-home pay. If the projected changes hold true, Americans might find a little more money in their paychecks next year.
The IRS is not expected to release the official updates until October or November of this year. Until then, taxpayers can expect continued uncertainty, although the projected increases in tax brackets may provide some financial relief.
Additional Tax Changes for 2026
In addition to potential bracket changes, other tax modifications are set to take effect in 2026 that could impact your filing. Some of the more notable changes include:
- No tax on tips and overtime
- Changes to the child tax credit
- A new tax deduction for seniors
What Happens Next
As the IRS prepares to announce these changes, the public can expect further updates on how these shifts will affect them financially. The final updates, however, are not expected to be released until late fall, so taxpayers will need to wait until then for official confirmation.
Closing Line
This story may be updated as new information becomes available about changes to tax provisions and brackets.
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