The IRS has announced the 2026 income tax brackets; thresholds have increased by ~2.22%, compared with ~2,8% for 2025, ~5.4% for 2024 and ~6.6% for 2023, based on the consumer price index (CPI).

How does this impact you and your tax liabilities? The new law will affect your tax burden for the next few years, at least, and your tax and financial planning both short- and long-term.

Here’s the information you need!

Income Tax Brackets―2025 & 2026:

Standard Deduction

The 2026 standard deduction is also increased—for single filers, to $16,100 from $15,750 for 2025: for married joint filers, to $32,200 from $31,500 for 2025. The 2025 figures are post-enactment of the One Big Beautiful Bill (OBBBA), which were increases over the initially published IRS adjusted 2025 brackets.

Taxpayers over age 65 can claim an additional standard deduction of $2,000 for single filers and $1,600 per qualifying spouse for married joint filers, up from $1,950 and $1,550, respectively, in 2025.

Further, single filers over 65 whose modified adjusted gross income (MAGI) is $75,000 or less can deduct an additional $6,000. For married joint filers and surviving spouses, MAGI must be $150,000 or less to claim this additional deduction.

Gift & Estate Exclusions

The annual gift tax exclusion for 2026 will stay at 2025’s level of $19,000.

The estate and gift tax threshold will increase in 2026 to $15,000,000 per individual from $13,990,000 in 2025.

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) exemption for 2026 is increased to $90,100 for individuals from $88,100 in 2025 and to $140,200 from $137,000 in 2025 for married couples filing jointly. Phase-out begins at $500,000 for individuals and $1,000,000 for married joint filers, compared with $626,350 and $1,252,700 in 2025.

Tax Strategies for 1Q2026

It’s never too early to start strategizing! While the new tax brackets are a good start, these are only a few of the significant adjustments the IRS has announced for 2026.

We can consider “bunching” of charitable contributions into alternate years, if that will suit your needs and goals.

You also may want to balance your portfolio to harvest capital losses.

If you’re a business owner, are you entitled to Section 179 deductions? Bonus depreciation? Come to us to ensure your capital planning is laser-targeted.

Let’s time your income and expenses to ensure you are making the most of every opportunity for tax savings.

The OBBA’s sweeping changes to the tax code are too numerous to include them all here―but be assured Rigby Financial Group’s tax experts will ferret out any potential benefits you’re entitled to!

In addition, if you itemize, we want to remind you that one of the provisions of the OBBA made permanent the 2017’s Tax Cuts and Jobs Act (TCJA) removal of most limitations on itemized deductions. Is this something which can help you keep more of your earnings? Let’s find out!

There are likely to be additional opportunities for you to leverage the new tax provisions to keep even more of your hard-earned money, and there are, in addition to federal tax opportunities, state tax credits to consider―consult with your fractional CFO or other trusted financial and tax advisor to develop the best strategy (or strategies) for you and your family.

In light of the OBBBA, you should consider developing new tax planning and estate strategies for 2026 or updating your existing plans. Please email us directly or schedule a consultation below―helping you is our mission!

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We look forward to helping you!

Until next time—

 Peace,

 Eric