New IRS tax deductions: Why your paycheck could be higher

As the first full paychecks in 2026 begin to hit bank accounts, some are seeing amounts they weren’t expecting. 

Here’s a look at why your paycheck might be slightly different in 2026: 

New IRS tax deductions

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The IRS adjusts tax brackets and standard deductions each year to adjust for inflation, which results in lower withholdings. 

Temporary deductions for tips, overtime, vehicle loan interest, and a higher child tax credit also take effect this year under President Donald Trump’s big spending bill. 

What you can do:

If your paycheck was significantly higher or lower than you were expecting, compare your most recent pay stub to an older one. Look at gross pay, taxes (both federal and state) and deductions, such as retirement and insurance. 

Some insurance costs may have also increased, causing a greater cost of your earnings.

RELATED: Your 2026 tax guide: All the changes to know before filing

2026 tax brackets vs. 2025

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Because of inflation adjustments, income thresholds for the two lowest brackets rose by about 4%, while higher brackets increased by roughly 2.3% compared with 2025 levels.

For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150.

By the numbers:

Below are the 2026 tax brackets compared to 2025:

RELATED: These states get the highest and lowest tax returns

When can you file taxes in 2026?

Timeline:

For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150.