Menu

Tax & Accounting News

TaxBuzz Top 5 - IRS Announces New Tax Brackets, Germany Launches Massive Influencer Tax Evasion Probe & More

by
Rebekah Barton
on
10/9/2025
TaxBuzz Top 5 - IRS Announces New Tax Brackets, Germany Launches Massive Influencer Tax Evasion Probe & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. IRS Adjusts 2026 Tax Brackets, Boosts Deductions to Offset Inflation

IRS-GettyImages-1466091657-2500
Credit: HABesen/Getty Images

The IRS has unveiled the updated tax brackets and related changes for the 2026 tax year (returns filed in 2027), reflecting both routine inflation adjustments and new provisions from the One Big Beautiful Bill:

  • The standard deduction levels rise, in part due to the law’s new baseline increases. Axios
  • The estate tax exemption jumps to $15 million, up from $13.99 million in 2025. Axios
  • Marginal brackets shift upward: for example, per WSJ, the top *37% bracket now kicks in at $640,600 for singles and $768,700 for joint filers. 

These adjustments are considered a critical shield against “bracket creep,” where inflation pushes taxpayers into higher rates even if real income hasn’t changed. More broadly, these changes reflect how new tax legislation (especially the “Big Beautiful Bill”) continues to reshape individual tax burdens.

For many taxpayers, the increases in deductions and shifting brackets could reduce effective tax rates or soften the impact of wage inflation.

2. Kyoto to Impose Japan’s Steepest Hotel Tax — Tourists from U.S., China, Australia to Feel the Pinch

hotel-GettyImages-1365967292-2500
Credit: Yagi Studio/Getty Images

Kyoto is set to introduce Japan’s steepest hotel tax beginning March 1, 2026, in a bid to curb overtourism and fund local infrastructure. The new five-tier structure will raise nightly taxes based on room prices — with rates ranging from ¥400 ($2.60) for budget stays to ¥10,000 ($68) per person at top-tier luxury hotels.

City officials say the tax, first introduced in 2018, will now cover a wider range of accommodations and could double annual lodging tax revenue from roughly ¥5.9 billion to ¥12.6 billion. Kyoto Mayor Daisaku Kadokawa said the increase is aimed at “ensuring sustainable tourism while protecting residents’ quality of life.”

The change comes amid growing concern over crowding in Japan’s cultural capital, where record post-pandemic visitor numbers have strained transport systems and historic sites. Travelers from the United States, China, South Korea, and Australia—who make up the bulk of international arrivals—will face the sharpest cost increases at high-end hotels.

Airlines and tour operators are already monitoring potential shifts in demand. Industry observers note that while the increase may not deter luxury travelers, it could drive some visitors to nearby cities like Osaka or Nara. Kyoto’s move mirrors a global trend, with cities like Venice, Barcelona, and Amsterdam imposing higher tourism taxes to manage visitor impact. Whether Kyoto’s bold approach will relieve overcrowding—or simply make travel pricier—remains to be seen.

3. German Influencers Face Tax Scrutiny as Authorities Target Unreported Income

influencers-GettyImages-2149200642-2500
Credit: Jacob Wackerhausen/Getty Images

German tax officials are turning their attention to social media influencers who allegedly haven’t paid taxes on sponsorships, freebies, or promotional activity. The crackdown is especially strong in North Rhine-Westphalia (NRW), where authorities estimate that influencers may owe €300 million in unpaid taxes.

In NRW, specialized “influencer units” staffed with hundreds of financial crime experts are analyzing social media data, contracts, and payment flows to detect discrepancies. Stephanie Thien, a representative of NRW’s Office for Financial Crime, said: “The target of our influencer teams isn’t young people who have gathered a few followers and advertised a few creams … We are interested in professional influencers.” 

Other states are following suit. Hamburg plans audits of 140 influencers, while Thuringia will investigate paid content across Instagram, TikTok, YouTube, and OnlyFans. German tax law requires all income—including non-cash perks like free products, travel, or event invitations in exchange for posts—to be declared. As KPMG notes, benefits in kind are especially scrutinized under the new enforcement push.

This crackdown signals that no revenue channel—digital or glamorous—is outside the tax authority’s grasp. Influencers in Germany are being reminded: social media fame doesn’t grant tax immunity. Depending on how the German probe goes, this could become commonplace in other nations, as well.

4. KFF Poll: Over 75% of Americans Want ACA Tax Credits Extended

healthcare-GettyImages-1483623112
Credit: Oscar Wong/Getty Images

A new Kaiser Family Foundation (KFF) Health Tracking poll released Oct. 3, 2025, finds 78% of Americans believe Congress should extend the enhanced Affordable Care Act (ACA) premium tax credits set to expire by year-end. That compares sharply to just 22% who think the credits should be allowed to lapse. 

Support cuts across political lines: 92% of Democrats, 82% of independents, and 59% of Republicans—including 57% of MAGA-aligned voters—favor extending the subsidies.

The poll also underscores how many Americans aren’t yet aware of what’s at stake. Around six in ten adults say they’ve heard “a little” or “nothing at all” about the impending expiration of the tax credits. 

Among those who purchase insurance through the ACA Marketplace, 70% said they could not absorb premium increases if the credits expire and costs rise. The expected hike is steep: without the enhanced credits, average Marketplace premiums could more than double, rising from $888 to $1,904 in 2026 — a 114% jump in cost for many households.

When asked whom they’d blame if the credits are allowed to expire, among those favoring extension, 39% pointed to President Trump, 37% blamed Republicans in Congress, and 22% blamed Democrats. The poll was fielded on September 23–29, just before the federal government shutdown began October 1.

5. Ohio Bars School Emergency Levies, Potentially Crunching Local Budgets

Ohio-GettyImages-1893753757-2500
Credit: halbergman/Getty Images

In a forceful move, Ohio lawmakers overrode the governor’s veto this week to bar school districts from seeking emergency tax levies that had been used to plug funding gaps. The aim: curb what some see as overreliance on property taxes. 

Supporters argue voters often don’t understand what they’re approving in special-levy elections, and eliminating the option prevents “surprise” tax hikes. Critics, however, warn the change is too blunt and threatens community stability. Public school funding often depends heavily on local levies. Without the emergency option, districts may struggle to cover sudden shortfalls—like rising utility costs, maintenance, or staffing emergencies. The law shifts more funding pressure onto the state, or forces deeper cuts, which could erode educational quality.

The commentary highlights classic local finance theory: economist Charles Tiebout’s model of “voting with your feet.” Communities benefit from having local autonomy over taxes and services—tailored to resident preferences. When you remove tools like levy votes, you reduce flexibility in neighborhood governance, the theory says.

In short, Ohio’s new law is not a simple tax tweak, but a test of how much central control states can impose before local communities buckle under financial rigidity. 

Which headline this week most interests you?

Feature Image Credit: Jacob Wackerhausen/Getty Images

share this post
Search for matches...
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Get Started

Related Posts

Latest Posts