The IRS just shared the new tax brackets and standard deduction for 2026. If you’re not paying attention, you might end up overpaying… again.
What’s New?
Each year, the IRS adjusts the tax brackets to account for inflation. In 2026, the brackets are going up about 2%. That might sound helpful, but if you’re not using tax strategies already, these small adjustments won’t do much.
Here’s a quick snapshot:
Single filer? Your first $12,400 is taxed at 10%, then 12% up to $50,400, and so on.
Married filing jointly? The first $24,800 is taxed at 10%, and the bracket thresholds double from there.
Head of household? You have a different structure, but the same concept applies, only the income within each bracket gets taxed at that bracket’s rate.
What About Deductions?
More good news. The standard deduction is also going up.
Single: $16,100
Married couples: $32,200
65+ or blind? You’ll get up to $2,050 more
This means more of your income isn’t taxed before those tax brackets even kick in.
Example: How This Works
Let’s say you’re single and make $120,000.
You take the $16,100 standard deduction
Now you’re taxed on $103,900
That puts you in the 24% tax bracket
But here’s the thing: with the right tax plan, you could bring that number down further.
Let’s say you max out your retirement plan, shift some income legally, and take your business deductions properly. That alone could drop your taxable income significantly, pushing you into a lower bracket.
This Isn’t a One-Size-Fits-All System
If you’re just saving 30% of your income because that’s what the internet said, you’re probably overpaying.
If you’re not using things like:
The new $40K SALT deduction
Strategic entity structures
Proper business deductions
…you’re leaving money on the table.
Don’t wait until April 2027 to realize you missed your chance. Visit Craft Money Map below to see how we turn these IRS updates into real, personalized tax strategies that grow your business and build long-term wealth.