The IRS has released inflation adjustment figures for over 60 tax provisions, including the 2026 tax rate tables. (Rev. Proc. 2025-32) Other key adjustment figures include:
- Standard deduction: Increased to $32,200 for married filing joint (MFJ); $24,150 HOH; and $16,100 for single and married filing separate (MFS) taxpayers;
- Annual gift tax exclusion: The annual gift tax exclusion will remain $19,000;
- IRC §179 current expense limitations: The dollar limit is increased to $2,560,000 and the investment limit is increased to $4,090,000;
- IRC §199A threshold and phase-in range amounts: The threshold is increased to $201,750 ($403,500 MFJ; $201,775 MFS). The phase-in range amount is also increased to $276,750 ($553,500 MFJ; $276,775 MFS); and
- Excess business loss threshold: As a result of OBBBA’s resetting of the inflation amounts, the threshold is decreased beginning with the 2026 tax year to $256,000 ($512,000 MFJ).
The retirement-related inflation adjustment figures are not included in Rev. Proc. 2025-32. These are announced separately, usually in November.
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