2026 Federal Income Tax Changes and New Brackets Explained: What You Need to Know

The upcoming 2026 filing season brings a new set of federal income tax brackets, adjustments to standard deductions, and several policy shifts that will affect nearly every taxpayer. These changes were introduced as part of federal legislation that adjusts how income is taxed across filing statuses. Below is a clear breakdown of what individuals and families need to know before planning for the 2025 tax year.

Updated Federal Tax Brackets for 2025 Income

Federal tax rates remain structured across seven brackets: 10, 12, 22, 24, 32, 35 and 37 percent. What changes each year is the income range that falls into those brackets.

2025 Federal Tax Brackets by Filing Status

Single Filers

• 10 percent: $0 to $11,925

• 12 percent: $11,926 to $48,475

• 22 percent: $48,476 to $103,350

• 24 percent: $103,351 to $197,300

• 32 percent: $197,301 to $250,525

• 35 percent: $250,526 to $626,350

• 37 percent: Over $626,350

Married Filing Jointly

• 10 percent: $0 to $23,850

• 12 percent: $23,851 to $96,950

• 22 percent: $96,951 to $206,700

• 24 percent: $206,701 to $394,600

• 32 percent: $394,601 to $501,050

• 35 percent: $501,051 to $751,600

• 37 percent: Over $751,600

Head of Household

• 10 percent: $0 to $17,000

• 12 percent: $17,001 to $64,850

• 22 percent: $64,851 to $103,350

• 24 percent: $103,351 to $197,300

• 32 percent: $197,301 to $250,500

• 35 percent: $250,501 to $626,350

• 37 percent: Over $626,350

Standard Deduction Increases for 2025

The federal standard deduction continues to grow with inflation. For the 2025 filing year:

• Single or Married Filing Separately: $15,750

• Married Filing Jointly: $31,500

• Head of Household: $23,625

These increases help reduce taxable income for those who do not itemize. The majority of taxpayers take the standard deduction, so even a small annual increase can make a noticeable difference.

2026 Federal Income Tax Changes and New Brackets Explained

:What This Means for Taxpayers

Most individuals will not need to take any immediate action, but several situations warrant a review:

• If your income shifts into a higher bracket, you may need to adjust your withholding.

• If you recently changed jobs or income levels, review your W-4 to avoid under-withholding.

• Those planning to itemize should compare the increased standard deduction to their anticipated itemized deductions.

When to Contact Goodman

You should reach out if:

• Your income will change significantly in 2025.

• You are unsure how these bracket changes affect your estimated tax liability.

• You have had multiple jobs or inconsistent income throughout the year.

• You want help adjusting your withholding to avoid surprises at tax time.

Our office can provide a quick withholding analysis to help you plan ahead.

Disclaimer

This information is provided for general guidance only and should not be considered tax, legal or accounting advice. For support specific to your situation, contact a qualified tax professional.