The IRS has released new federal income tax brackets for 2026, the agency announced in a news release published on Thursday, Oct. 9.

The updates are due to changes in inflation and a new tax law that passed over the summer as part of President Donald Trump’s “One, Big, Beautiful Bill.”

The adjustments take effect for the 2026 tax year, which means they will apply to tax returns filed in 2027.

Here’s everything you need to know.

Previously: The winners (and losers) in Trump's 'big beautiful' tax bill—now law

Standard deductions for the 2026 tax year will increase to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100. For heads of households, the standard deduction will be $24,150, according to the release.

For tax year 2025, the new tax law raises the standard deduction amount to $31,500 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction for 2025 is $15,750. For heads of household, it’s $23,625, according to the IRS.

The agency also released figures for long-term capital gains brackets, estate and gift tax exemption and eligibility for the earned income tax credit, in addition to other provisions.

Those with taxable income exceeding $640,600 and married couples earning $768,700 or more will be subjected to the top marginal rate of 37% in tax year 2026. That rate applies only to the portion of income above the threshold. (Learn more about how marginal tax rates work from the nonprofit Tax Foundation.)

The lowest marginal rate is 10% for the income of single individuals up to $12,400. The same rate applies for the first $24,800 of income from married couples filing jointly.

Additional information can be found on the IRS website.

To calculate your taxable income, you can subtract the greater of the standard or itemized deductions from your adjusted gross income, according to CNBC. The federal tax brackets show how much you owe on each part of your “taxable income.”

Michelle Del Rey is a trending news reporter at USA TODAY. Reach her at mdelrey@usatoday.com

This article originally appeared on USA TODAY: New IRS federal income tax brackets for 2026 are announced