The IRS has released its 2026 inflation adjustments, affecting tax brackets, contribution limits, and more. These changes will impact filing strategies and financial planning for millions of Americans. Here’s your essential guide to what’s new—and what you should do next.
🔑 What’s Changed?
Key updates influenced by inflation include:
- Standard deduction increases
- Single filers: up to $14,600
- Married filing jointly: now $29,200
- Tax bracket thresholds have shifted upward
- These adjustments ensure you won’t face higher taxes just because your income rose with inflation.
- Retirement account contributions
- 401(k), 403(b), 457 plans: contribution limit increased to $23,000
- IRA contributions: now max $7,500
- Health Savings Account (HSA) limits
- Individual coverage: raised to $3,900
- Family coverage: now $7,850
- Earned Income Tax Credit (EITC) changes
- Maximum credit amounts and income limits have been adjusted slightly upward.
- Flexible Spending Account (FSA) limits
- 2026 contribution cap raised to $3,200
🧭 Why It Matters
- Planning your tax strategy
Bigger standard deductions and higher bracket thresholds may free up more of your income from federal taxes. - Maxing out retirement savings
Increased contribution limits mean additional opportunities to grow your retirement funds tax-free. - Healthcare savings boosts
Higher HSA and FSA limits mean more pre-tax dollars can be set aside for medical expenses. - Benefit-eligible for lower-income earners
An expanded EITC means more potential for relief via refundable tax credits.