Here’s what HIVE AI had to say about “What are the main 2025–2026 IRS inflation adjustments (brackets, credits, etc.) I should know before filing?”:
Which year applies to the return you’re about to file
- A 2025 Form 1040 (generally filed in 2026) uses tax year 2025 inflation-adjusted amounts. 5
- The IRS’s “tax year 2026” inflation adjustments apply to 2026 income (returns generally filed in 2027). 6
Main IRS inflation adjustments for tax year 2025 (2025 return filed in 2026)
Standard deduction (tax year 2025)
- Single and married filing separately: $15,000. 1
- Married filing jointly: $30,000. 1
- Head of household: $22,500. 1
Note: Separate from inflation adjustments, OBBBA later increased the 2025 standard deduction amounts (for 2025 returns filed in 2026) to $15,750 single/MFS, $31,500 MFJ, and $23,625 HOH. 6
Highest bracket threshold (tax year 2025)
- The top 37% rate applies over $626,350 (single) and over $751,600 (married filing jointly). 1
Student loan interest deduction phaseout (tax year 2025)
- The $2,500 maximum student loan interest deduction begins phasing out at modified AGI over $85,000 (single) / $170,000 (joint) and is fully phased out at $100,000 (single) / $200,000 (joint). 2
Medical Savings Account (MSA) high-deductible plan thresholds (tax year 2025)
- Self-only: deductible not less than $2,850 and not more than $4,300; out-of-pocket max $5,700. 2
- Family: deductible not less than $5,700 and not more than $8,550; out-of-pocket max $10,500. 2
Main IRS inflation adjustments for tax year 2026 (for context, 2026 return filed in 2027)
Standard deduction (tax year 2026)
- $16,100 single/MFS; $32,200 MFJ; $24,150 HOH. 6
Rate schedule thresholds (tax year 2026 highlights)
- Top 37% threshold: over $640,600 (single) / over $768,700 (MFJ). 6
Earned Income Tax Credit (EITC) (tax year 2026)
- Maximum EITC for 3+ qualifying children: $8,231 (up from $8,046 for 2025). 3
- EITC disallowed if investment income exceeds $12,200. 4
Fringe benefits and benefit-plan limits (tax year 2026)
- Qualified transportation fringe and qualified parking monthly limit: $340. 3
- Health FSA employee salary reduction limit: $3,400; carryover limit (if plan allows carryover): $680. 3
- MSA thresholds: self-only deductible $2,900–$4,400 with out-of-pocket max $5,850; family deductible $5,850–$8,750 with out-of-pocket max $10,700. 3
AMT exemption amounts (tax year 2026)
- AMT exemption: $90,100 (unmarried) with phaseout starting at $500,000; $140,200 (MFJ) with phaseout starting at $1,000,000. 6
Sources
1 – IRS Newsroom – IR-2024-273 📄 Summarize
2 – Rev. Proc. 2024-40 📄 Summarize
3 – IRS Newsroom – IR-2025-103 📄 Summarize
4 – Rev. Proc. 2025-32 📄 Summarize
5 – IRS releases tax inflation adjustments for tax year 2025
6 – IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill
Try Your AI Tax Assistant for Free!
Ready to transform your practice with agentic AI in tax? See firsthand how our cutting-edge AI tax tools can revolutionize your approach to tax research and planning.