If you get a raise next year, there’s a chance your tax rate won’t change thanks to new tax brackets recently released by the Internal Revenue Service.
And if you earn the same amount or less, your rate may even decrease.
The IRS usually adjusts tax brackets every year for inflation. This way, a household that reports nominally higher income — but not an increase in buying power — doesn’t tip over into a higher tax.
When taxpayers file returns in April 2027, they will see tax bracket thresholds that have increased by about 2.7% over the prior year, to account for inflation, according to the Tax Foundation .
This means a household that reports income near the top of a specific bracket in 2025 — and then reports slightly more income for 2026 — may not necessarily be bumped up to the