2026 Tax Brackets Just Changed: Will Your Refund Be Bigger This Year?

The IRS just rolled out the 2026 tax brackets, and taxpayers across New Haven are asking the same question: will this mean more money back at tax time?

Here's the short answer: maybe. The brackets expanded due to inflation adjustments, which could reduce your tax bill: but whether you see a bigger refund depends on several moving parts in your financial picture. Let's break down exactly what changed and what it means for your wallet.

The 2026 Tax Bracket Changes: What Actually Happened

The federal income tax rates stayed exactly the same for 2026. You're still looking at seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. No surprises there.

What changed are the income thresholds for each bracket. They shifted upward to account for inflation, meaning you can earn more money before getting bumped into a higher tax rate.

Here's what the new brackets look like for single filers in 2026:

• 10% bracket: Income up to $12,400 (was $12,025 in 2025)
• 12% bracket: $12,401 to $50,400 (was $12,026 to $48,475)
• 22% bracket: $50,401 to $127,550 (was $48,476 to $123,350)
• 24% bracket: $127,551 to $222,100 (was $123,351 to $215,000)
• 32% bracket: $222,101 to $578,125 (was $215,001 to $559,850)
• 35% bracket: $578,126 to $693,750 (was $559,851 to $671,850)
• 37% bracket: Over $693,750 (was over $671,850)

For married couples filing jointly, the brackets roughly double those amounts. The key takeaway? You can earn slightly more in 2026 without crossing into the next tax bracket.

Standard Deduction Increases: Real Money Back in Your Pocket

The standard deduction also got a bump for 2026. This matters because the standard deduction directly reduces your taxable income before calculating what you owe.

Here are the new standard deduction amounts for 2026:

• Single filers: $16,100 (up from $15,750 in 2025)
• Married filing jointly: $32,200 (up from $31,500)
• Head of household: $24,150 (up from $23,625)

That's an extra $350 to $700 shielded from taxation, depending on your filing status. Not life-changing money, but it adds up: especially when combined with the bracket adjustments.

Will Your Refund Actually Be Bigger? It Depends.

Here's where it gets tricky. A tax bracket adjustment doesn't automatically translate to a bigger refund check. Your refund is the difference between what you paid throughout the year and what you actually owe.

Three factors determine whether you'll see more money back:

1. Your Withholding Stayed the Same

If your employer withheld the same amount from your paychecks in 2026 as they did in 2025, you're in good shape. The expanded brackets and higher standard deduction mean you'll owe slightly less tax: so more of what you already paid gets refunded.

But here's the catch: Many payroll systems automatically adjust withholding based on updated IRS tables. If your employer already reduced your withholding to match the new brackets, you're breaking even: not getting a windfall refund.

2. Your Income Changed

Earned more in 2026 than 2025? Your total tax liability likely increased, even with the bracket adjustments. Made less? You might owe less overall and see a bigger refund.

The bracket changes help cushion the blow of income increases, but they don't eliminate higher taxes on higher earnings.

3. Life Happened

Changes in your personal situation matter more than bracket shifts. Got married? Had a baby? Bought a house? Started a side hustle? Each of these life events drastically affects your tax picture: and your refund.

This is where professional tax preparation in New Haven makes a real difference. A concierge tax pro looks at your complete financial story, not just the brackets.

What New Haven Taxpayers Need to Know Right Now

If you live or work in New Haven, these bracket changes interact with Connecticut's own tax system. Connecticut has seven state income tax brackets ranging from 3% to 6.99%, and those didn't shift in lockstep with federal changes.

Translation: You need to maximize your tax refund on both levels: federal and state. Missing deductions or credits on either return leaves money on the table.

Common areas where New Haven residents lose out:

• Property tax credits on state returns (Connecticut offers a credit up to $300 for qualifying taxpayers)
• Earned Income Tax Credit (EITC) miscalculations on federal returns
• Home office deductions for the growing number of remote workers
• Self-employment tax optimization for freelancers and gig workers

DIY tax software doesn't ask the right questions to uncover these opportunities. A local tax pro does.

Smart Moves to Maximize Your 2026 Refund

Don't just file and hope for the best. Take these action steps now to ensure you're getting every dollar back:

Update Your W-4 Form

If you got a big refund last year (over $2,000), you're essentially giving the IRS an interest-free loan. Adjust your withholding now to keep more money in your paycheck throughout the year.

If you owed money at tax time, increase your withholding immediately to avoid penalties and a cash crunch next April.

Track Everything

Keep receipts for:

• Charitable donations (even small ones add up)
• Medical expenses exceeding 7.5% of your income
• Business mileage and home office costs if self-employed
• Education expenses for yourself or dependents

Don't Sleep on Tax Credits

Credits directly reduce your tax bill dollar-for-dollar. They're better than deductions. Common credits include:

• Child Tax Credit ($2,000 per qualifying child)
• Child and Dependent Care Credit
• Lifetime Learning Credit for education
• Energy-efficient home improvement credits (solar panels, heat pumps, etc.)

Consider Tax-Advantaged Accounts

Contributing to a traditional IRA or HSA (Health Savings Account) before the tax deadline can reduce your taxable income and increase your refund. For 2026, you can contribute up to $7,000 to an IRA ($8,000 if you're 50 or older).

Why Jose's Tax Service Makes Sense for 2026

Look, you could use tax software and hope you find everything. Or you could work with a concierge tax pro who knows New Haven's specific tax landscape and actively looks for every opportunity to maximize your tax refund.

At Jose's Tax Service, we don't just fill out forms: we strategize. We review your complete financial picture, ask the questions software doesn't, and catch deductions you didn't know existed.

The best part? $0 upfront payment. We get paid from your refund, so there's zero risk and no cash out of pocket to get professional help.

Our clients in New Haven consistently see bigger refunds than they would filing alone: often hundreds or thousands more: because we know exactly where to look.

Take Action Before Tax Season Hits

The 2026 bracket changes create small advantages, but smart tax planning creates big results. Don't wait until April to think about your taxes.

Schedule a consultation with Jose's Tax Service now. We'll review your situation, identify opportunities specific to your circumstances, and create a plan to maximize your 2026 refund.

The bracket adjustments might save you a few hundred dollars. Professional tax preparation in New Haven could save you a few thousand.

Ready to see what you're leaving on the table? Contact Jose's Tax Service today and let's make 2026 your best tax year yet. Visit josestaxservice.com or call to get started: remember, there's no upfront cost to work with our team.

Your bigger refund is waiting. Let's go get it.