Why Your Tax Bill Could Rise in 2026 Even If Your Income Doesn’t
Written by
Chris Adam
Edited by
Amen Oyiboke
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Perhaps you’ve been in the situation where tax time rolls around again, and you’re caught off guard by how much you owe.
“Same job, same retirement income, same lifestyle, yet the tax bill is higher,” said Taylor Kovar, certified financial planner and CEO of 11 Financial. “That usually has less to do with earning more and more to do with how the tax rules quietly shift over time. They also change when thresholds move, benefits phase out, and rules expire, which is why checking in on your tax picture once in a while can prevent surprises.”
Here are five big reasons your tax bill could rise in 2026 — even if your income stays steady.
Family Changes
According to Kevin Estes, CFP and founder of Scaled Finance, along with parents facing rising taxes as their children age, a change in filing status can also increase taxes.
“Someone may lose the married, filing jointly status after a divorce or separation,” Estes said. “The same may be true a few years after the death of a spouse, when [the] qualifying surviving spouse ends.”
Benefit Phaseouts
Many deductions and credits phase out as income crosses specific thresholds.
“If you earn right over $500,000 jointly, or are a senior citizen on a fixed income, you can feel the impact of the income phase-out,” said Marcus Sturdivant Sr., managing member of The ABC Squared. “The new tax brackets for 2026 expanded the levels more for the lower tax brackets, relative to the 37% top rate. This really hits around the $600,000 and above threshold.”
Bracket Creep
Even without a raise, inflation can push your income into a higher tax bracket, a phenomenon called bracket creep.
Per Christopher Stroup, founder and president of Silicon Beach Financial, “When tax brackets don’t keep pace with real-world inflation or adjust less favorably, more of your income is taxed at higher rates, shrinking after-tax cash flow without you earning a dollar more.”
Expiring Tax Provisions
Stroup also noted that several taxpayer-friendly provisions from recent tax legislation are scheduled to expire or change after 2025.
“That can mean higher marginal rates, lower standard deductions and reduced credits,” Stroup said. “The result is that your tax bill climbs in 2026 even if your income, business revenue and lifestyle remain unchanged.”
Inflation Adjustments
Not all tax rules adjust evenly with inflation. According to Stroup, “Certain thresholds move slowly or not at all while your costs of living, healthcare and business expenses climb. The mismatch causes more income to become taxable relative to your real spending power, quietly increasing your tax burden.”
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