IRS Revenue Procedures: Annual Tax Inflation Adjustments
Every year, the IRS publishes Revenue Procedures that announce inflation adjustments for tax brackets, standard deductions, and dozens of other tax provisions. Here's everything you need to know about these critical annual announcements.
📋 What Are IRS Revenue Procedures?
Revenue Procedures are official statements published by the IRS that provide guidance on how tax laws will be administered. The annual inflation adjustment Revenue Procedures are typically published in October or November each year.
🎯 Key Purpose:
Adjust tax parameters annually to prevent "bracket creep" — where inflation pushes taxpayers into higher brackets without real income gains.
📅 Revenue Procedures Available
Rev. Proc. 2024-40
2025 Tax Year (filed in 2026)
- • Standard deductions: $15,750 / $31,500 / $23,625
- • Top tax bracket: $609,350 (single)
- • Child Tax Credit: $2,200 per child
- • And 50+ other adjustments
View complete details →
Rev. Proc. 2025-32
2026 Tax Year (filed in 2027)
- • Standard deductions updated
- • Tax brackets adjusted for inflation
- • All limits and thresholds revised
- • Full details inside
View complete details →
🔧 What Gets Adjusted Each Year?
Revenue Procedures adjust 50+ different tax provisions. Here are the most important:
💰 Income & Deductions
- • Standard deduction amounts
- • Tax bracket thresholds
- • Personal exemption
- • Additional standard deduction (age 65+/blind)
👨👩👧 Credits & Benefits
- • Earned Income Tax Credit (EITC)
- • Child Tax Credit income limits
- • Adoption credit
- • Foreign earned income exclusion
🏢 Business & Employment
- • Social Security wage base
- • Section 179 expensing limit
- • Qualified Business Income (QBI) threshold
- • Transportation fringe benefits
💼 Retirement & Savings
- • 401(k) contribution limits
- • IRA contribution limits
- • Catch-up contribution limits
- • Health Savings Account (HSA) limits
❓ Why Revenue Procedures Matter to You
💵 Your Take-Home Pay
Inflation adjustments mean you might pay less tax on the same incomecompared to the previous year, increasing your take-home pay.
📊 Tax Planning
Knowing next year's numbers helps you plan deductions, conversions, and timing of income and expenses for maximum tax savings.
🏦 Retirement Contributions
New limits mean you can contribute more to 401(k)s and IRAs, potentially reducing taxable income significantly.
📄 Official IRS Sources
Revenue Procedures are published in the Internal Revenue Bulletin and available on IRS.gov:
- • Internal Revenue Bulletin - Official publication source
- • IRS Newsroom - Annual inflation adjustment announcements
- • IRS Forms & Publications - Updated forms reflecting new amounts