The IRS has announced the inflation adjustment for the 2026 tax year recently. Taxpayers should know the tax provisions based on the annual inflation for the income earned in 2026. The article covers everything you wish to know about tax breakers, deductions, and the IRS Mileage rate for 2026.
The IRS announced the changes for the 2026 tax year, which will be applied to tax returns filed in 2027. Qualified taxpayers should know the basic tax rules and changes to prepare well for the tax returns.
The agency has released the changes based on the One Big Beautiful Bill tax changes announced in July 2025. The OBBA brought many changes to the tax provision, such as the standard deduction and other deductions.
What are Tax Brackets and Rates for the 2026 tax year?
The IRS has seven rates for tax year 2026 10%, 12%, 22%, 24%, 32%, 35%, and 37% for individual taxpayers, while 10%, 24%, 35%, and 37% are for estates and trusts. Based on the IRS inflation adjustment for tax year 2026, you can check the tax brackets and rates table below for all filing statuses:
| Tax Rate | Singles or Individuals/ Married filing separately | Married Filing Joint Returns | Head of Households |
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,750 |
| 32% | $201,776 – $256,225 | $403,551- $512,450 | $201,751 – $256,200 |
| 35% | $276,226 – $640,600 | $512 451 – $768,700 | $256,201 – $640,600 |
| 37% | $640,601 and above | $768,701 or above | $640,601 or above |
What are the IRS Mileage Rates for 2026?
Taxpayers who use the vehicles for business, medical, or charitable purposes can deduct the standard mileage rates from their taxes for every mile driven. The mileage rates covered the cost of gas, registartion fees, lease payments, or other reducing the financial burden on the taxpayers.
IRS allows mileage rate for self-employed business, medical, moving (military only), and charity. The IRS mileage rate for the 2026 tax year has not been announced yet, but it is expected to be announced in December 2025.
However, based on the past trends, you can expect the mileage rates to increase by 3 cents from the current 70 cents for businesses. Here are the expected mileage rates for the 2026 tax year and the current 2025 rates:
| 2025 tax year | 2026 tax year (expected) | |
| Business | 70 | 73 |
| Charity | 14 | 14 |
| Medical or military moving | 21 | 21 |
What are the Tax Deductions for the 2026 tax year?
With OBBA in the picture, the standard deduction is changed, and the seniors have an additional deduction. The IRS has announced the deduction for the 2026 tax year based on the new tax rules. Here you can learn about the standard deduction based on your filing status:
| Filing Status | Standard Deduction |
| Married filing jointly and surviving spouses | $32,200 |
| Head of Households | $24,150 |
| Unmarried individuals/ Married filing separately | $16,100 |
- Seniors or the blind: Apart from this, seniors or the blind will have the additional deduction of $1650, and it will increase to $2050 if the individual is not a surviving spouse and unmarried.
- Dependent: If the individual is claimed as a dependent in another person’s claim, cannot exceed the standard deduction by $1350 or the sum of $450 and the individual’s earned income.
What are the tax exemptions for 2026?
The personal tax exemptions for the tax year 2026 remain at zero, the same as the 2025 tax year, under the Tax Cuts and Jobs Act of 2017, which was made permanent under the OBBA law. Now, apart from that, the taxpayers have the alternative minimum tax exemption amounts.
The alternative minimum tax exemption is an income limit that reduces your income subject to AMT. Under the tax inflation adjustment, here’s the AMT based on the filing status:
| Filing Status | AMT Exemption Amount | Threshold Phaseout | Complete Phaseout |
| Surviving Spouses or married filing jointly | $140,200 | $1,000,000 | $1,280,400 |
| Single | $90,100 | $500,000 | $680,200 |
| Married filing separately | $70,100 | $500,000 | $640,200 |
The IRS has announced the tax provisions based on the OBBA and other tax changes introduced by the government for the tax year 2026. Taxpayers can check their tax liability for the income they will earn in 2026.
Disclaimer: Information shared is based on the current IRS mileage rate. For official updates and rate changes, visit the IRS website.
