IRS releases updated tax brackets for 2026
The IRS has released updated federal income tax brackets and standard deductions for the 2026 tax year, which will apply to returns filed in 2027.
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- The Internal Revenue Service announced that the opening day of the 2026 filing season will be Jan. 26, according to a press release issued on Thursday, Jan. 8.
- It’s bound to be a complicated tax season for many as several new tax breaks that are part of the One Big Beautiful Bill Act will pop up on 2025 federal income tax returns.
Despite concerns about delays, the IRS will kick off tax season as usual when it begins accepting and processing federal income tax returns in late January.
The Internal Revenue Service announced that the opening day of the 2026 filing season will be Jan. 26, according to a press release issued on Thursday, Jan. 8.
It’s bound to be a complicated tax season for many as several new tax breaks that are part of the One Big Beautiful Bill Act will pop up on 2025 federal income tax returns.
Taxpayers have until Wednesday, April 15, to file their 2025 tax returns and pay any tax due.
The IRS said it expects to receive about 164 million individual income tax returns this year, with most taxpayers filing electronically.
As part of some changes, the IRS will no longer be issuing tax refunds by paper check to most individual taxpayers who file 2025 tax returns.
Acting IRS Commissioner Scott Bessent, who is the U.S. Treasury Secretary as well, said he is confident in the ability of the IRS to “deliver results and drive growth for businesses and consumers alike.”
Prior to the passage of the One Big Beautiful Bill Act, he said, Treasury and IRS were diligently preparing to update forms and processes for the benefit of taxpayers.
“The Internal Revenue Service is ready to help taxpayers meet their tax filing and payment obligations during the 2026 filing season,” said IRS Chief Executive Officer Frank Bisignano in a statement issued Jan. 8.
Bisignano said IRS information systems have been updated to incorporate the new tax laws and are ready to efficiently and effectively process returns.
Taxpayers will need to keep a new Schedule 1-A at the top of mind this tax season, if they plan to claim recently enacted tax deductions, such as no tax on tips, no tax on overtime, no tax on car loan interest, or the enhanced deduction for seniors.
While many people drag their feet and file closer to the typical April 15 deadline, millions of people eagerly file tax returns as early as they can to get their hands on tax refund cash.
During the initial days of the filing season in 2025, the IRS had received more than 13.1 million tax returns as of Jan. 31, 2025. More than 3.2 million refunds were processed in those few short days with an average refund of $1,928 at that time.
In 2025, the average federal income tax refund hit $3,052 as of the week ending Oct. 17, the latest data published by the IRS. That was up 1.6% from a year earlier.
The IRS Free File program will begin accepting individual tax returns starting Friday, Jan. 9, for qualified taxpayers. Taxpayers who prepare their own taxes can use IRS Free File Fillable Forms starting Jan. 26, regardless of income.
Contact personal finance columnist Susan Tompor: [email protected]. Follow her on X @tompor.
