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2026 state standard deductions, exemptions and brackets: inflation projections instead of the amounts states have published (KY, ME, MN, MI, WI, MO, OR, LA, NE) #9872
Description
Summary
For 2026, several state parameters have no dated value, so PE projects them with gov.irs.uprating or a state index. Most states have now published their 2026 amounts, and the projections differ.
Wisconsin's projection also starts from the wrong 2025 base (#9328), so its 2026 4.4% bracket is too high.
Published 2026 amounts vs PE-US 1.811.2
"PE main" is the value on main on 2026-10-06, where it differs from 1.811.2.
| State | Parameter | PE 1.811.2 | PE main |
Published 2026 | Source |
|---|---|---|---|---|---|
| KY | standard deduction | 3,344.11 | (projection) | 3,360 | KY DOR |
| ME | standard deduction, single / joint / HoH | 15,000 / 30,000 / 22,500 | 15,700 single | 15,300 / 30,600 / 22,950 | MRS 2026 rate schedules |
| MN | standard deduction, single / joint / HoH | 15,250 / 30,550 / … | (projection) | 15,300 / 30,600 / 23,000 | MN DOR, 2025-12-16 |
| MN | single brackets | 33,310 / 109,410 / 203,130 | (projection) | 33,310 / 109,430 / 203,150 | same |
| MI | personal exemption | 5,950 | — | 5,900 | Treasury, 2026 withholding |
| WI | brackets (single) | 15,012.69 / 52,288.75 / 330,616.69 | — | 15,110 / 51,950 / 332,720 | WI DOR 2026 indexing from the Act 15 base ($50,480 × 1.0291) |
| WI | standard deduction max, single / joint | 13,870 / 25,680 | — | 13,960 / 25,840 | same |
| MO | brackets | 1,342.76 … 9,399.29 | — | 1,348 … 9,436 | MO DOR 2026 tax tables |
| OR | standard deduction, single / joint | 2,895 / 5,795 | — | 2,910 / 5,820 | OR DOR 2026 withholding tables |
| OR | brackets (single) | 4,450 / 11,350 | — | 4,550 / 11,400 | same |
| OR | federal tax subtraction cap | 8,650 | — | 8,750 | OR DOR 2026 |
| LA | standard deduction, single / joint | 12,835 / 25,670 | 13,070 / 26,140 | 12,875 / 25,750 (LDR 2026 withholding tables; final amounts follow the 2025 CPI-U) | LDR proposed regulation |
| NE | standard deduction, single / joint | 8,750 / 17,550 | — | 8,850 / 17,700 | NE DOR draft 2026 Form 1040N |
Not verified individually: the WI, MO, OR and NE values come from the states' 2026 withholding tables or draft forms, as relayed by secondary sources. The KY, ME, MN, MI and LA figures are from the agency pages linked above.
Reproduction (policyengine-us 1.811.2)
from policyengine_us import Simulation
for st, v in (("KY", "ky_standard_deduction_indiv"), ("ME", "me_standard_deduction"),
("MN", "mn_standard_deduction"), ("MI", "mi_personal_exemptions")):
s = Simulation(situation={"people": {"a": {"age": {2026: 40}, "employment_income": {2026: 50_000}}},
"households": {"h": {"members": ["a"], "state_code": {2026: st}}}})
print(st, s.calculate(v, 2026).sum())
# KY 3344.11, ME 15000.0, MN 15250.0, MI 5950.0Possible fix: add dated 2026 values, with references, to each parameter file.
Found by
The PRD comparison, cause state_tax.pe_parameter_values. PRD's 2026 rows carry the published amounts. The cause covers 4,114 units in 2026, $28K of state tax in total.
🤖 Generated with Claude Code
Activity
PavelMakarchuk commentedon Oct 6, 2026
Correction to the table above, found while preparing #9927:
main's 15,700 / 31,400 / 23,550 is right. P.L. 2025 c.650 Pt K §14 (36 M.R.S. §5124-C(1-C)) changed the 2026 amounts, and Maine Revenue Services revised its 2026 rate schedule on 2026-05-20; the 15,300 / 30,600 / 22,950 in the table came from the superseded schedule. The PRD comparison's 2026 row for Maine is therefore out of date, not PolicyEngine'smain.mainalready has the final RIB 26-019 amounts (12,838 / 25,676, Use Louisiana's RIB 26-019 2026 standard deduction and retirement exemption #9791); the 12,875 in the table came from the proposed regulation.#9927 adds the published 2026 values for KY, MI, MN, MO, NE, OR (brackets and federal tax subtraction cap) and WI (standard deduction). The WI 2025 bracket base is #9328 / #9803.
Add published 2026 amounts for KY, MI, MN, MO, NE, OR and WI income t…