The IRS just released new federal income tax brackets for 2026, adjusting thresholds for inflation. The top rate of 37% now applies to single filers earning over $640,600 and married couples earning over $768,700. The standard deduction will rise to $32,200 for married couples and $16,100 for single filers. The update also increases limits for long-term capital gains, estate and gift tax exemptions, and child tax credit eligibility.