2026 IRS tax brackets explained — why some workers may see slightly higher paychecks despite inflation and updated withholding rules

New IRS tax brackets for 2026 could slightly increase paychecks for millions of American workers. Lower brackets widened by nearly four percent, offering modest relief against inflation-driven wage pressure. Trump’s extended tax law also reshapes withholding, shifting benefits from refunds into regular paychecks. Most workers may see only a few extra dollars per pay period. Inflation and rising household costs could mute the real impact, experts warn.