IRS Updates 2026 Inflation-Indexed Tax Guidance, Corrects Tables and Credits

Overview

• The IRS issued updated guidance for 2026 that corrects published calculations and adds Low-Income Housing Tax Credit allocation details, with the revisions set for Internal Revenue Bulletin 2025-45 on Nov. 3, 2025.
• Statutory rates stay the same for 2026, while bracket thresholds rise and the standard deduction increases to $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for heads of household.
• The top 37% bracket starts above $640,600 for single filers and $768,700 for married couples filing jointly, with all other income thresholds adjusted upward for inflation.
• Corrections include the 24% range for heads of household (over $105,700 to $201,750) and the married filing separately 24% formula, alongside updated Low-Income Housing Tax Credit state ceiling amounts.
• More than 60 provisions are adjusted for 2026, including AMT exemptions ($90,100 single; $140,200 joint with phaseouts), a $15,000,000 estate tax exclusion, a maximum Earned Income Credit of $8,231, a $132,900 foreign earned income exclusion, and larger employer childcare credits up to $500,000 ($600,000 for eligible small businesses); an example analysis shows a married couple with $1,000,000 AGI owing about $2,157 less than in 2025.