WASHINGTON, D.C. — The Internal Revenue Service (IRS) on Thursday unveiled a series of significant adjustments to federal tax return parameters for both the 2025 and 2026 tax years. These changes result from both statutory updates under the new tax law enacted in July and the standard annual inflation adjustments.

Tax experts suggest that, generally speaking, the changes will offer taxpayers “modest relief” simply because the deductions and thresholds move upward. Inflation will take less of a bite,” Tom O’Saben, director of tax content at the National Association of Tax Professionals, reported to CNN .

Higher Standard Deduction Confirmed

The most widely used deduction is receiving a dual boost from the new tax law and inflation. A higher standard deduction means more income falls in

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