India, Oct. 9 -- The Internal Revenue Service (IRS) announced the new federal income tax brackets on Thursday. In what would please many taxpayers, the income thresholds of all tax brackets have been increased. The highest slab - 37% - now applies to people with a taxable income above $640,000 and couples making north of $768,700 in taxed earnings.

These changes would apply for the year 2026, for which returns would be filed in 2027. The changes take into account inflation and its effects.

These modifications come at a time when the government shutdown is set to affect the manpower currently available to the IRS. In fact, the agency had declared on the previous day that it would furlough around half its workforce due to the shutdown.

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