India, Oct. 9 -- The United States Internal Revenue Service (IRS) has released updated federal income tax brackets for the 2026 tax year, with changes aimed at accounting for inflation. These annual adjustments prevent 'bracket creep', when rising wages push taxpayers into higher tax brackets despite their real purchasing power not increasing.

The new brackets, announced on Thursday, will apply to tax returns filed in 2027. Both married couples filing jointly and single filers will see higher income thresholds before reaching the next tax bracket, meaning taxpayers may owe less than they would have under 2025 levels.

According to CNBC, married couples will now be charged the 10 percent tax on incomes from $0 to $24,800 instead of $23,85...