Brackets, deductions and the math of a high income.
The IRS's 2026 inflation adjustments raise the joint standard deduction to $32,200, hold the gift exclusion at $19,000 and set the thresholds that matter most for bracket, gifting and trust planning.
The new deduction limit loses 30 cents for every dollar of income above $500,000, and a faster AMT exemption phaseout from 2026 adds pressure on high earners in high-tax states.
Paychecks and year-end forms will not reflect the July tax law this year, leaving high earners to square up a larger SALT deduction and other changes through estimates and their 2025 returns.