--- title: "2026 IRS Inflation Adjustments: Official Tax Limits" description: "Official 2026 tax inflation adjustments from IRS Rev. Proc. 2025-32. Brackets, deductions, credits, estate limits, and benefit caps in one guide." canonical_url: "https://www.themoneypocket.com/articles/2026-irs-inflation-adjustments-guide" last_updated: "2026-07-02T13:57:49.497Z" --- Each fall, the IRS releases annual inflation adjustments for dozens of tax provisions. **Revenue Procedure 2025-32** (announced in IR-2025-103) sets the official dollar amounts for tax year 2026 — returns filed in 2027. This guide complements our [OBBBA tax changes guide](/articles/2026-tax-changes-obbba-guide): the OBBBA covers **policy changes** (new senior deduction, permanent brackets); this release covers **indexed dollar amounts**. ## Top 2026 Adjustments at a Glance
Provision 2026 Amount 2025 Amount
Standard deduction (single) $16,100 $15,750
Standard deduction (MFJ) $32,200 $31,500
Top 37% bracket (single) Over $640,600 —
Estate/gift exemption $15,000,000 $13,990,000
Annual gift exclusion $19,000 $18,000
EITC max (3+ children) $8,231 $8,046
Adoption credit max $17,670 $17,280
FEIE limit $132,900 $130,000
Health FSA limit $3,400 $3,300
Commuter benefits $340/month $325/month
## Tax Brackets and Standard Deduction The OBBBA made the seven-bracket structure permanent. For 2026, brackets are indexed with a special adjustment for the 10% and 12% rates. **Standard deduction (2026):** - Single / MFS: **$16,100** - Married filing jointly: **$32,200** - Head of household: **$24,150** Additional amounts for age 65+ or blind taxpayers also increased. The new **$6,000 senior deduction** (OBBBA) is separate and available to taxpayers 65+. Use the [Federal Tax Bracket Calculator](/tools/federal-tax-bracket-calculator) and [Standard Deduction Calculator](/tools/standard-deduction-calculator). ## Estate and Gift Tax A major update: the estate and gift tax exemption **increased** to **$15 million** per person for 2026 (up from $13.99 million in 2025). The OBBBA made this exemption permanent and inflation-indexed — it no longer sunsets. - **Annual gift exclusion:** $19,000 per recipient (unchanged indexing from 2025's $18,000) - **Non-citizen spouse gifts:** $194,000 annual exclusion - **Estate tax rate:** 40% on amounts above the exemption See the [Gift Tax Calculator](/tools/gift-tax-calculator) and [Estate Tax Calculator](/tools/estate-tax-calculator). ## Key Tax Credits ### Earned Income Tax Credit Maximum credit for 3+ children: **$8,231**. Investment income limit: **$11,950**. Use the [EITC Calculator](/tools/eitc-calculator). ### Adoption Tax Credit Maximum: **$17,670** per child. Refundable portion: **$5,120**. Phase-out: $265,080 – $305,080 MAGI. Use the [Adoption Tax Credit Calculator](/tools/adoption-tax-credit-calculator). ### Child Tax Credit Remains at **$2,200** per qualifying child under OBBBA rules. Use the [Child Tax Credit Calculator](/tools/child-tax-credit-calculator). ## Employee Benefits ### Health FSA Salary reduction limit: **$3,400**. Maximum carryover: **$680**. ### Commuter Benefits Transit and qualified parking: **$340/month** each. Use the [FSA & Commuter Benefits Calculator](/tools/fsa-commuter-benefits-calculator). ## Foreign Earned Income Exclusion The FEIE increased to **$132,900** for 2026. US citizens and residents working abroad who meet qualification tests can exclude this amount from federal income tax. Use the [FEIE Calculator](/tools/feie-calculator). ## Alternative Minimum Tax AMT exemption amounts for 2026: - Single: **$90,100** (phase-out begins at $500,000) - Married filing jointly: **$140,200** (phase-out begins at $1,000,000) Use the [AMT Calculator](/tools/amt-calculator). ## What Did NOT Change Some provisions are **frozen by statute** and were not adjusted: - **Lifetime Learning Credit** phase-out: still $80,000 – $90,000 (single) / $160,000 – $180,000 (joint). See our [LLC income limits guide](/articles/lifetime-learning-credit-income-limits). - **Personal exemption:** Remains at $0 (eliminated by TCJA, made permanent by OBBBA) - **Annual gift exclusion:** $19,000 — technically unchanged from the inflation formula (rounded) ## Itemized Deductions The Pease limitation on itemized deductions remains **permanently eliminated**. However, the OBBBA imposes a new cap on the **tax benefit** of itemized deductions for taxpayers in the 37% bracket. See our [itemized deduction cap guide](/articles/itemized-deduction-37-percent-bracket-limit). ## How to Use This Information 1. **Update your withholding** if bracket changes affect your tax liability 2. **Review open enrollment** FSA and commuter elections against new limits 3. **Plan estate gifting** with the $19,000 annual exclusion and $15M lifetime exemption 4. **Check credit eligibility** as income phase-out thresholds shift ## Key Takeaways - Rev. Proc. 2025-32 sets official 2026 indexed amounts - Estate/gift exemption **rose** to $15M — no longer sunsetting - Standard deduction, brackets, and most credits increased modestly - Some provisions (LLC phase-out) remain frozen since 2020 - Pair this guide with the [OBBBA changes guide](/articles/2026-tax-changes-obbba-guide) for complete 2026 tax planning --- **Calculators:** [Federal Tax Bracket](/tools/federal-tax-bracket-calculator) | [Standard Deduction](/tools/standard-deduction-calculator) | [EITC](/tools/eitc-calculator) | [Gift Tax](/tools/gift-tax-calculator) | [FEIE](/tools/feie-calculator) | [FSA & Commuter](/tools/fsa-commuter-benefits-calculator)