The IRS announced new federal income tax brackets and standard deductions for 2026, raising income thresholds across all brackets.

Long-term capital gains brackets, estate and gift tax exemptions, and earned income tax credit eligibility were also increased.

For 2026, the top tax rate of 37% applies to individuals earning over $640,600 and married couples earning over $768,700.

The standard deduction will rise to $32,200 for married couples filing jointly and $16,100 for single filers, CNBC has reported.

The announcement comes amid ongoing IRS furloughs, with nearly half of its workforce affected by the government shutdown.