Despite a government shutdown and news that the Internal Revenue Service would furlough almost half of its staff, the IRS released its 2026 tax year brackets, and there are changes.
The federal agency announced on Wednesday that it was going to furlough almost half of its workers and that most operations were already closed, The Associated Press reported.
The layoffs were part of the IRS’s Lapsed Appropriations Contingency Plan that allowed for five days of operations during the government shutdown using Democrats’ Inflation Reduction Act funding.
As of Wednesday, about 53.6% or 39,870 people will continue working throughout the shutdown, but it is not known what jobs will continue, the AP reported
The furlough and shutdown, however, did not stop the release of the 2026 tax year brackets and standard deductions affecting what you will pay in 2027.
For a single filer, to be in the lowest tax bracket, paying 10% they can make up to $12,400 in 2026, for the 2027 filing season. For 2025 and paid in 2026, they could make up to $11,925.
For couples who are married and filing jointly, the maximum amount for the lowest bracket is $24,800, up nearly $1,000 from $23,850, CBS News reported.
The standard deduction for married couples filing jointly will be $32,200. Heads of households will have $24,150, while single taxpayers or married individuals will have a $16,100 standard deduction.
To see the 2025 tax year rates, to be paid in 2026, click here.
For senior citizens aged 65 and older, they can get a temporary tax deduction of up to $6,000 for single filers making $75,000 or less or for married couples filing jointly making $150,000.
Another change in the 2026 tax year regulations affects capital gains, or if you made more than what you paid for something when you sold it. Capital gains are based on what your income is and can be 0%, 15% or 20%, CNBC reported.
Taxable income up to $49,450 for a single person or $98,900 will have to pay the 0% rate.
For the 15% rate, you need to make less than $545,500 if you’re single or $613,700 for married filing jointly.
Anything over those amounts will be the 20% tax, CNBC said.
Click here to see all the changes from the IRS.
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