TAX YEAR 2026

Revenue Procedure 2025-32

Official IRS Inflation Adjustments for Tax Year 2026

Income earned in 2026, filed in early 2027 • Expected October/November 2025

⏳ Publication Status

Revenue Procedure 2025-32 is expected to be published in October or November 2025.

The IRS typically releases the annual inflation adjustments in late fall of the preceding year. This page will be updated with complete details as soon as Rev. Proc. 2025-32 is officially published.

📅 Typical Timeline:

• October/November 2025: IRS publishes Rev. Proc. 2025-32
• January 2026: New amounts take effect
• January-April 2027: Most taxpayers file using 2026 numbers

🔮 What to Expect in 2026

Based on historical patterns and inflation trends, here's what we can anticipate for Tax Year 2026:

💰 Standard Deductions

Expected to increase by 2-4% based on inflation

Estimated ranges (pending official announcement):

• Single: ~$16,000-$16,400
• Married Filing Jointly: ~$32,000-$32,800
• Head of Household: ~$24,000-$24,600

⚠️ These are estimates only. Wait for official IRS announcement.

📊 Tax Brackets

All seven tax bracket thresholds will be adjusted upward for inflation. The tax rates themselves (10%, 12%, 22%, 24%, 32%, 35%, 37%) remain the same — only the income thresholds change.

💼 Retirement Contributions

401(k), IRA, and HSA contribution limits typically see modest increases. Recent years have shown 401(k) limits increasing by $500-$1,000 annually.

🏢 Social Security Wage Base

The wage base cap for Social Security taxes will be adjusted. Historical increases range from $4,000-$8,000 per year depending on wage growth.

📋 What Will Be Updated in Rev. Proc. 2025-32

When published, Revenue Procedure 2025-32 will provide updated amounts for 50+ tax provisions. Here are the major categories:

💰 Income & Deductions

• Standard deduction amounts
• Tax bracket thresholds
• Additional deduction (age 65+/blind)
• Personal exemption

👨‍👩‍👧 Credits & Benefits

• Earned Income Tax Credit
• Child Tax Credit limits
• Adoption credit
• Education credits

🏢 Business Limits

• Social Security wage base
• Section 179 expensing
• QBI deduction threshold
• Transportation benefits

💼 Retirement Plans

• 401(k) contribution limits
• IRA contribution limits
• Catch-up contributions
• SIMPLE IRA limits

🏥 Health Savings

• HSA contribution limits
• HDHP minimum deductibles
• FSA contribution limits
• Medical Savings Accounts

🎁 Estate & Gift

• Estate tax exemption
• Gift tax annual exclusion
• Generation-skipping transfer
• Foreign gifts threshold

📊 Historical Inflation Adjustments

To understand what to expect, here's how key provisions have changed over recent years:

Provision	2024	2025	% Change
Standard Deduction (Single)	$14,600	$15,750	+7.9%
401(k) Contribution	$23,000	$23,500	+2.2%
Social Security Wage Base	$168,600	$176,100	+4.5%
Estate Tax Exemption	$13,610,000	$13,990,000	+2.8%

Based on these trends, 2026 adjustments will likely range from 2-5% depending on the specific provision and inflation rates.

🔧 How IRS Calculates Inflation Adjustments

The IRS uses the Chained Consumer Price Index for All Urban Consumers (C-CPI-U)to determine annual inflation adjustments.

📈 Step 1: Measure Inflation

The IRS compares the C-CPI-U from August of the previous year to August of the current year to calculate the inflation adjustment factor.

🧮 Step 2: Apply to Base Amounts

Each tax provision has a statutory base amount. The IRS multiplies this by the inflation adjustment factor to get the new amount.

🔄 Step 3: Round Appropriately

Results are rounded according to statutory rules (typically to the nearest $50 or $100) before being published in the Revenue Procedure.

🔔 Get Notified When Rev. Proc. 2025-32 is Published

We'll update this page immediately when the IRS releases Revenue Procedure 2025-32. Bookmark this page or check back in October/November 2025 for complete details.

📅 Expected Publication:

October-November 2025 in the IRS Internal Revenue Bulletin

Where to watch: IRS Newsroom and Internal Revenue Bulletin

✅ Currently Available: Tax Year 2025 Numbers

While we wait for 2026 adjustments, you can review the complete official numbers for Tax Year 2025:

📄 View Complete Rev. Proc. 2024-40 (Tax Year 2025) →

❓ Why 2026 Adjustments Matter Now

📊 Year-End Tax Planning

Knowing 2026 numbers helps with decisions about deferring income, accelerating deductions, and Roth conversions in late 2025.

💼 Retirement Planning

Higher contribution limits for 2026 mean you can save more tax-deferred. Plan ahead to maximize contributions early in the year.

💰 Withholding Adjustments

New brackets might reduce your tax liability, meaning you could increase take-home pay by adjusting your W-4 in early 2026.