BETHLEHEM, Pa. — Workers across the Lehigh Valley and beyond could see slightly larger paychecks this year.
Updated federal income tax brackets take effect in 2026, lowering the amount of income taxed at higher rates for many households.
The Internal Revenue Service adjusts tax brackets periodically to account for wage growth and inflation. For 2026, those adjustments push the income thresholds for each tax rate higher, letting more earnings to be taxed at lower rates before moving into higher brackets…