Bloomberg Tax & Accounting released its annual report Thursday projecting U.S. tax rate brackets, standard deduction amounts, and alternative minimum tax exemption amounts for the year ahead.
The Projected U.S. Tax Rates Report aims to provide early, accurate notice of the potential tax savings that could be realized due to increases in deduction limitations, upward adjustments to tax brackets, and increases to numerous other key thresholds. It arrives a day after the U.S. Bureau of Labor Statistics reported that the consumer price index rose 2.9% over the past 12 months.
The report also accounts for several new adjustments made under the One Big Beautiful Bill Act of 2025 that affect tax planning for taxpayers in 2026 and beyond. For corporate taxpayers, they include modified phaseout amounts for the alternative minimum tax imposed under Section 55 of the Tax Code.
For pass-through entities, the report includes an adjustment to the new minimum deduction for active qualified business income under Section 199A.
For individuals, the report figures in different income tax rates with steeper adjustments for lower tax brackets. In addition, the report includes an adjustment to the child tax credit, which has never before been adjusted for inflation but is now under the recently passed OBBBA.
“Our annual projections provide tax professionals with the timely, data-driven intelligence they need to strategize effectively for the upcoming tax year well ahead of official IRS figures,” said Evan Croen, head of Bloomberg Tax & Accounting, in a statement Thursday. “With persistent inflation affecting everything from individual tax brackets to the child tax credit, our integrated research and software solutions are essential for navigating these changes and optimizing tax planning.”
Some of the other key adjustments, with comparisons of the 2025 amounts and 2026 projections, include:
Individual income tax rate brackets
| Married filing jointly and surviving spouses |
| 2025 tax rate bracket income ranges | Projected 2026 tax rate bracket income ranges |
| 10% – $0 to $23,850 | 10% – $0 to $24,800 |
| 12% – Over $23,850 to $96,950 | 12% – Over $24,800 to $100,800 |
| 22% – Over $96,950 to $206,700 | 22% – Over $100,800 to $211,100 |
| 24% – Over $206,700 to $394,600 | 24% – Over $211,400 to $403,550 |
| 32% – Over $394,600 to $501,050 | 32% – Over $403,550 to $512,450 |
| 35% – Over $501,050 to $751,600 | 35% – Over $512,450 to $768,700 |
| 37% – Over $751,600 | 37% – Over $768,700 |
| Unmarried individuals (other than surviving spouses and heads of households) |
| 2025 tax rate bracket income ranges | Projected 2026 tax rate bracket income ranges |
| 10% – $0 to $11,925 | 10% – $0 to $12,400 |
| 12% – Over $11,925 to $48,475 | 12% – Over $12,4000 to $50,400 |
| 22% – Over $48,475 to $103,350 | 22% – Over $50,400 to $105,700 |
| 24% – Over $103,350 to $197,300 | 24% – Over $105,700 to $201,775 |
| 32% – Over $197,300 to $250,525 | 32% – Over $201,775 to $256,225 |
| 35% – Over $250,525 to $626,350 | 35% – Over $256,225 to $640,600 |
| 37% – Over $626,350 | 37% – Over $640,600 |
Standard deduction
| Filing Status | 2025 standard deduction | Projected 2026 standard deduction |
| Married filing jointly/surviving spouses | $30,000 | $32,200 |
| Heads of household | $22,500 | $24,175 |
| All other taxpayers | $15,000 | $16,100 |
Alternative minimum tax
| Filing status | 2025 AMT exemption amount | Projected 2026 AMT exemption amount |
| Married filing jointly/surviving spouses | $137,000 | $140,200 |
Unmarried individuals (other than surviving spouses) | $88,100 | $90,100 |
| Married filing separately | $68,500 | $70,100 |
| Estates and trusts | $30,700 | $31,400 |
Credit: Source link
