SPRINGFIELD, Mass. (WWLP) – Inflation has triggered the largest adjustment to the IRS standard tax deduction since 1985. The IRS makes these adjustments every year, but with inflation as high as it is, this move is larger than usual.

Major changes will be coming to tax brackets next year, as inflation continues affecting people all over the world. Now, automatic annual adjustments to the IRS’s tax brackets are hoping to dull the impact here in the states.

Representative Richard Neal said, “Congress some years ago decided that they would index these brackets based on inflationary trends. So I think that people will see some relief next year based on these filings.”

First, changes to the standard deduction used by 85% of filers. The deduction for married couples, up by $1,800. For single filers, an increase of $900 and for heads of households, $1,400.

That’s not all. Big adjustments for tax brackets, 12% owed for incomes over $22,000 and 22% for income higher than $89,000. For individuals, similar changes… 24% kicking in around $95,000. To make the top tax bracket, you have to take home more than $231,000.

So inflation is bad and it’s changing taxes, but how much is it actually going to save you per paycheck? One expert 22News spoke to said not as much as we hoped.

David Yos of Holyoke Tax Services said, “Well, it’s not as if they will be getting more, but they aren’t going to end up paying more taxes. It will kind of keep things level as they are. People won’t be punished for inflation on their taxes.”

That’s good news for most, as prices have increased by more than 8% over the last year and wages have fallen by 3%. These changes take effect January 1st.