U.S. Market Close 10/13/2025

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Here Are the Federal Income Tax Brackets for 2026

The seven IRS tax rates determine how much you will owe Uncle Sam

Good news: You could fall into a lower bracket for the income you earn in 2026 thanks to the new income tax rates. Also, the standard deduction — the amount you can use as a deduction on your 1040 tax return without itemizing — will be higher.

If you start now, you can make plans to reduce your 2026 tax bill — the one due in April 2027. Knowing the tax brackets for 2026 can help you implement smart tax strategies, like adjusting your income tax withholding, so you don’t get hit with a big tax bill.

How the federal income tax brackets work

In the U.S. tax system, income tax rates are graduated, so you pay different rates on different amounts of taxable income. There are seven federal income tax rates in all: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent. The more you make, the more you pay.

Read more at AARP

Credit Unions Mobilize As Shutdown Drags On, First Missed Paychecks Loom Next Week

WASHINGTON--With the federal government shutdown likely to last at least through the weekend, and next week being the first missed paycheck for affected employees, leagues and credit unions are working to ensure members can still meet their financial obligations, America's Credit Unions reported.

The Nebraska Credit Union League reached out to its congressional delegation highlighting several credit union efforts in the state, as well as from credit unions in Washington, D.C., that are assisting D.C.-based government workers.

“Throughout Nebraska, credit union members can count on their local credit unions to find the help they need to weather financial challenges connected to the government shutdown, including the added risk of permanent job losses,” said Brandon Luetkenhaus, president of the Nebraska Credit Union League “As people-first financial cooperatives, credit unions do all they can to work with Nebraskans to find short and long-term solutions that help them maintain financial stability during the shutdown.”

Read more at CREDIT UNION TODAY

As the Wealth Gap Widens, Banks May Have to Pick Between Two Distinct Customer Sets

Executive Summary

• According to Bank of America, decent 2% YoY growth in total household spending in September masked a widening chasm between lower-income households and higher-income consumers.
• Higher-income households benefit from a wealth effect driven by equity markets, while lower-income households, particularly Millennials and Gen X, face cooling wage growth and lack the assets to maintain spending momentum.
• For retail banks, products and marketing must address fundamentally different financial realities: expanded credit access and financial education for struggling households versus wealth management and premium services for the affluent.

September’s consumer spending data looks reassuring at first glance — 2.0% year-over-year growth, four consecutive months of positive momentum, the strongest performance since December 2024.

Read more at The Financial Brand

Citi, Mastercard launch global cross-border payments

It will be available in 14 markets worldwide, with plans for further expansion.

Citi and Mastercard have collaborated to offer cross-border payments to Mastercard debit cards in 14 receiving markets worldwide, with plans for further expansion.

Leveraging Citi’s WorldLink payment services and Mastercard Move’s money transfer capabilities, Citi clients can make near-instant, full-value payments, with near 24/7 availability to consumers using their Mastercard debit card details.

Citi is the first global bank to enable cross-border payments to Mastercard debit cards using Mastercard Move.

This service is available to Citi clients across 65 countries in the corporate, financial institution, e-commerce, and commercial sectors.

Read more at MSN

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Despite government shutdown, Oct. 15 is still the tax extension deadline

Key Points

• Despite the government shutdown, the federal tax extension deadline is still Oct. 15 for most filers.
• The process could be harder for some taxpayers after the IRS furloughed nearly half of its workforce earlier this week.
• However, electronic filing remains operational, and you can still file online by the deadline to avoid a penalty.

Despite the government shutdown, the Oct. 15 federal tax extension deadline is fast approaching for many filers.

The process could be harder for some taxpayers after the IRS furloughed nearly half of its workforce —about 34,000 employees — earlier this week, experts say.

“It’s going to be a long haul if you need any kind of specialized customer experience,” said Jennifer MacMillan, president of the National Association of Enrolled Agents, whose members are tax professionals licensed by the IRS.

Read more at CNBC

PayPal’s “Self-Disruption” Business Strategy: CEO Alex Chriss on Fintech Evolution

PayPal (NASDAQ: PYPL), the Fintech company that launched its electronic payment system in 1999, continues to dominate digital transactions, and is now focused on what it claims is disrupting itself in a crowded and increasingly competitive financial technology ecosystem.

The platform handles peer-to-peer transfers via Venmo, online checkouts, invoicing for businesses, and cryptocurrency trading, all backed by 24/7 fraud monitoring and encryption. Yet, under CEO Alex Chriss, who took the helm in 2023 after leading Intuit’s small business division, PayPal is pivoting to address emerging challenges in a cashless economy.

Chriss views money management as inherently stressful for consumers and small businesses.

Read more at CROWDFUNDINSIDER

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Multistate Coalition Sends CFPB Letters Opposing Proposals Shrinking Bureau Authority

Late last month, California Attorney General Rob Bonta, along with Democrat attorneys general from 18 other states and the District of Columbia, sent multiple letters to the Consumer Protection Financial Bureau opposing advanced notices of proposed rulemakings that would shrink the CFPB’s oversight of the automobile finance, consumer reporting, debt collection, and international money transfer services markets. In August, the Bureau issued four ANPRs inviting comments on whether it should reduce the Bureau’s ​“Larger Participant” supervisory authority in these four markets by increasing the transaction threshold that determines when a company becomes subject to CFPB supervision. The attorneys general argue that the proposed reduction in oversight would leave millions of Americans without a federal agency looking after their best interests and would violate the CFPB’s obligation to protect consumers under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The changes to the rules would al

Read more at Kelley Drye & Warren LLP

Mastercard Secures 2nd Position in Top 100 Companies

Mastercard demonstrates how infrastructure and AI integration drive performance, as it comes second in FinTech Magazine’s Top 100 Companies

Mastercard has been named 2nd in the FinTech Magazine Top 100 Companies list, recognition that arrives as the payments network reports revenue growth of 16.8% in its second quarter of 2025.

The company processed US$8.13bn in net revenue during the period, with switched transactions reaching 43.5 billion across its network.

The Purchase, New York-based company operates as a technology platform connecting consumers, financial institutions, merchants and governments across more than 200 countries and territories.

Read more at FINTECH MAGAZINE

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October 26-October 29

Contact: LeeAnn Thompson, Director of Member Services

lthompson@infinalliance.org

IRS releases tax inflation adjustments for tax year 2026: IRS

WASHINGTON — The Internal Revenue Service today announced the tax year 2026 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2025-32 PDF provides details about these annual adjustments.

Notable changes under the One, Big, Beautiful Bill

The tax year 2026 adjustments described below generally apply to tax returns filed in 2027. The tax items for tax year 2026 of greatest interest to most taxpayers include the following dollar amounts:

Standard Deduction. For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150.

(Additionally, for tax year 2025, the OBBB raises the standard deduction amount to $31,500 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction for 2025 is $15,750, and for heads of households, the standard deduction is $23,625.)

Read more at INTERNAL REVENUE SERVICE

How to Capture the Impending Generational Wealth Transfer

Navigating Millennials in Banking: Capturing the Impending Generational Wealth Transfer

With millennials bringing forth a major intergenerational wealth transfer, navigating their financial status and positioning themselves to secure and evolve bank or credit union relationships, regional and community financial institutions are poised to respond to the unique needs of this generation — setting the stage for growth.

Rapid technological advances and significant socioeconomic shifts have positioned financial institutions at the cusp of a major generational transition. Millennials, who represent ages 28 to 44, are often defined by their tech dependence and unique financial challenges and have been an ongoing acquisition target for banks and credit unions. This demographic’s distinct behaviors and preferences have set the course for new banking practices and strategies; financial industry leaders are racing to innovate the digital banking experience alongside a product portfolio that will capture the largest intergenerational wealth transfer in history.

Read more at The Financial Brand

About 1 in 5 U.S. workers now use AI in their job, up since last year: PEW

As the abilities of artificial intelligence (AI) tools advance rapidly, a growing share of Americans say they are using the technology in their jobs.

Today, 21% of U.S. workers say at least some of their work is done with AI, according to a Pew Research Center survey conducted in September. That share is up from 16% roughly a year ago.

Most American workers (65%) still say they don’t use AI much or at all in their job.

The small share of those who say all or most of their work is done with AI is unchanged from 2024 (2%). But the share who say some of their work is done with AI increased from 14% to 19%.

Meanwhile, the share of workers who say they have not heard or read about AI use in the workplace decreased from 17% to 12%.

Read more at Pew Research Center

Top 5 Stories of the Week in Fintech

The top stories across fintech this week, including winners from FinTech Live, news from Hexaware, Microsoft Azure, Checkout.com, Klarna and more!

If you missed FinTech Live: London 2025, then catch up on the award winners for the Global FinTech awards in the article below.

Additionally, banking sees another revolutionary wave with AI from Hexaware in the fight against cyber crime.

Meanwhile, AI continues to drive transformation in the e-commerce section with news from Microsoft Azure’s partnership with checkout.com.

AI continues to shake up the world of e-commerce as a new partnership from Klarna and Google Cloud set out to improve customer experience.

Read more at FINTECH MAGAZINE

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Mark Cuban Backs Dallas Fintech Startup With $50M Investment

A Dallas-based financial technology startup Yendo, Inc. has secured $50 million in funding from Mark Cuban and other investors.

Yendo offers credit cards backed by vehicle equity, designed for customers who may otherwise struggle to access them due to low credit scores. The product, which functions like a traditional credit card, is secured by the value of a person’s vehicle. Customers can obtain up to $10,000 in revolving credit with a fixed interest rate of 29.88%.

“Yendo is the first credit card backed by vehicle equity. It works like a regular Mastercard, but taps into your vehicle equity to get higher limits at affordable rates,” the company states on its website.

In addition to Cuban, the Series B funding round also saw participation from Autotech Ventures, FPV Ventures, Pelion Venture Partners, Spice Expeditions, Clocktower Technology Ventures, and other investors. Spice Expeditions founder Nick Huber will join the startup’s board of directors, alongside Lyft co-founder Logan Green.

Read more at DallasExpress

Social Security COLA for 2026: How federal government shutdown may affect announcement

Key Points

• Millions of Social Security beneficiaries are poised to see an inflation-adjustment to their benefits in 2026.
• But the timing of the Social Security cost-of-living announcement may be delayed if the federal government shutdown continues.
• Here’s what experts are watching with regard to the Social Security COLA for 2026.

The Social Security cost-of-living adjustment for 2026 is expected to be formally announced in October. However, the federal government shutdown may affect the timing of that news.

Millions of Social Security beneficiaries are poised to get a boost to their monthly checks next year. When the Social Security COLA is announced, experts have projected the benefit increase may fall in the range of 2.7% to 2.8%, based on the most recent government inflation data.

Read more at CNBC

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The IRS upped capital gains brackets: How much you can earn and still pay $0 in 2026

The IRS announced a raft of changes to tax rules for tax year 2026 on Thursday, including higher brackets for capital gains tax.

A quick reminder of how these work. If you sell an investment you hold in a taxable account for more than you paid for it, you realize a capital gain. Profits on investments you’ve held for a year or less are taxed at your regular income tax rate (the IRS announced boosts to those brackets, too).

Profits on assets you’ve held for longer than a year are subject to the long-term capital gains rate, which, depending on your income, is either 0%, 15% or 20%.

Read more at CNBC

What's the Average Net Worth for the Lower, Middle, and Upper Class?

Lower class, middle class, and upper class are all widely used, but rarely defined terms. For some people, lower class means living in poverty, upper class means a life of luxury, and middle class is everyone else.

Thanks to the 2022 Survey of Consumer Finances, we can get a more accurate idea of what these terms mean financially. It provides the median net worth and median income for each income range. Keep reading to see those numbers, check where your own personal finances land, and get helpful information on how to improve your financial situation.

Average net worth for the lower class

Median net worth: $16,900

Median income: $20,540

Read more at The Motley Fool

Minimum Wages in 50 U.S. States & 35 Countries, Adjusted for Living Costs

Key Takeaways

After adjusting for inflation and price differences, statutory minimum wages in leading high-income economies—including Germany, Australia, and France—are higher than all 50 U.S. states.

Under the same metrics D.C., Connecticut, Washington, and Arizona have the highest statutory minimum wages in the U.S.

U.S. states following the federal minimum wage (which hasn’t moved since 2008), cluster at the bottom end of this ranking, closer to upper-middle-income economies like Colombia and Peru.

And despite them following the same minimum ($7.25/hr), their real values diverge after adjusting for cost of living.

Finally, these figures are gross (pre-tax, pre-tips) statutory figures. European taxes tend to be higher than the U.S. states, and tipping culture is mostly absent, which may affect actual take-home

Read more at VISUALCAPITALIST.COM

Inside the Bill Pay Habits of U.S. Households in 2025

A new doxoINSIGHTS 2025 Report: The Bill Pay Economy™: How Americans Pay Their Bills reveals the financial weight, risks, and daily habits behind the household bill pay experience in the U.S. The findings show Americans are spending nearly a third of their income on bills while grappling with rising costs, security concerns, and the stress of keeping up.

Bills Take Up Nearly a Third of Household Income

The report provides in-depth analysis of U.S. bill pay behavior and demographics, revealing that households now spend a median of $24,695 annually—roughly 31% of their income—on the 13 most common bills, including utilities, rent, mortgage, mobile phone, internet, auto loans, and insurance. Altogether, U.S. households pay a total of $4.55 trillion each year on essential bills.

Read more at MORNINGSTAR

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Family offices still bet on AI and health care even as deals slow down

Key Points

Investment firms of the ultra-rich made 46% fewer direct investments in September compared with the same period last year, according to Fintrx.

But family offices such of those of Jeff Bezos and Michael Dell are still inking high-profile mega-rounds or making opportunistic bets.

Health-care entrepreneur Mark Mitchell told CNBC why his family office acquired a beauty retailer.

Deal-making may have rebounded on Wall Street, but investment firms of the ultra-wealthy are still moving cautiously. Family offices made 54 direct investments in September, down 46% on an annual basis, according to data provided exclusively to CNBC by private wealth platform Fintrx.

Despite the broader slowdown, billionaire family offices are still investing in mega-rounds for high-flying startups. Last month, the firms of Amazon founder Jeff Bezos and former Google CEO Eric Schmidt joined a $300 million seed round for Periodic Labs. Founded by former OpenAI and DeepMind researchers, Periodic Labs seeks to automate scientific research with artificial intelligence-powered robots running lab experiments.

Read more at CNBC

Is Private Credit Drowning in Capital? These Are the Strategic Implications for Investors

The risk of market crowdedness is real, but opportunities remain for investors in the rapidly expanding private credit market.

The private credit market has grown rapidly since the global financial crisis of 2007-08. In its Private Credit Survey 2025, “Trends in Private Credit,” Proskauer reported that in 2024, “total assets under management in private credit strategies grew by a stout 18% to $4.1 trillion.” In addition, according to credit research firm LSTA, in 2024, the volume of jumbo loans (those above $1 billion) increased more than 70%. While growth can signal opportunity, it can also create dangerous crowdedness.

Crowdedness denotes a scenario in which investors collectively and simultaneously acquire significant volumes of the same assets. Those cash flows can drive equity valuations higher. In credit markets, cash inflows not only can drive spreads lower, but they can also lead to increased systemic risk as loan/value ratios can rise and interest coverage ratios fall.

Read more at MORNINGSTAR

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IRS furloughs nearly half of its workforce due to government shutdown

Key Points

About 34,000 IRS workers are being furloughed, according to the agency. Another 39,870 employees, representing 53.6% of the workforce, will remain on the job.

The announcement came as the federal shutdown entered its eighth day without an agreement between Republicans and Democrats in Congress on a funding deal that would end the crisis.

The IRS on Wednesday said that it was furloughing nearly half of its workforce due to the ongoing government shutdown.

About 34,000 IRS workers are being furloughed, according to the tax agency. Another 39,870 employees, representing 53.6% of the workforce, will remain on the job.

The furloughs came as the shutdown of federal government operations was in its eighth day, and as dueling funding resolutions that would end the crisis for the sixth time failed to pass in votes by the Senate.

Read more at CNBC

An uptick in private equity defaults could squeeze your access to credit. Here's how

As banks face growing exposure risks, rising PE defaults could eventually tighten lending standards and raise borrowing costs for consumers

When private equity-backed companies stumble, it's not just Wall Street that feels the pain. Everyday Americans could soon find it harder and more expensive to get a mortgage, car loan or small business credit line.

Private equity defaults rose 80% in the second quarter of 2025, with 21 companies defaulting on more than $27 billion of debt, up from 15 companies defaulting on roughly $15 billion of debt in the previous quarter, according to Moody’s Ratings. The spike in PE defaults was driven by a deterioration in credit conditions amid President Trump’s trade wars and tariff policy, Moody’s reported.

If PE defaults continue to stack up, it could heighten concerns about potential ripple effects through the banking system.

Read more at QUARTZ

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$45.5 Trillion in Card Purchases and other Digital Transactions News briefs from 10/9/25

New research from Datos Insights found that credit and debit cardholders globally made 1.1 trillion purchases worth $45.5 trillion in 2024.

Buy now, pay later provider Splitit launched its Agentic Commerce Partner Program, an invitation-only effort to bring card-linked installment payments to autonomous shopping agents.

Some 86% of restaurant operators are comfortable with the idea of using artificial intelligence, though 23% say they are planning to start using new technology to run their businesses, down from 26% last year, according to research from Toast Inc. The research surveyed 712 decision makers between April 18 and May 13.

Churchill Downs Inc., well-known as the venue provider for the Kentucky Derby, agreed to adopt ATM, debit card, credit card, and check services from Everi, a payments-technology platform.

Read more at DIGITAL TRANSACTIONS

Will credit card interest rates fall this October? Here's what experts say.

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The Federal Reserve issued its first rate cut of the year in September — a 25-basis-point reduction that marked a notable shift in monetary policy. But credit card rates have remained largely unchanged, continuing a pattern where they prove resistant to broader market movements.

Credit card users are still facing near-record-high average rates above 20%, creating serious challenges for those carrying balances. With the Fed signaling more potential policy changes ahead, however, many cardholders are wondering if October might finally bring some relief.

We asked some financial experts to explain what's shaping credit card interest rates and what changes (if any) we might see this month. Below, we'll break down what you need to know right now.

Read more at CBS NEWS