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

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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.














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