(NEXSTAR) – Millions of Americans could see a financial bump thanks to inflation adjustments to the tax code announced by the IRS Tuesday.

The changes to federal brackets, prompted by the rising costs of food, rent, gasoline, and other items, will go into effect for tax year 2026, meaning that they apply to returns filed in 2027.

The standard deduction — which reduces the amount of income on which you’re taxed — will also increase, from $31,500 to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction will rise from $15,750 to $16,100. Finally, for heads of households, the standard deduction will jump up from $23,625 to $24,150.

The principal reason behind the annual adjustment is to combat “bracket creep,” or t

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