diff --git a/changelog.d/changed/spm-calculator-corrected-thresholds.md b/changelog.d/changed/spm-calculator-corrected-thresholds.md
new file mode 100644
index 00000000000..ba568342576
--- /dev/null
+++ b/changelog.d/changed/spm-calculator-corrected-thresholds.md
@@ -0,0 +1 @@
+Adopt the corrected SPM thresholds BLS published on July 17, 2026 via spm-calculator 0.4.0: full-precision 2005-2024 reference thresholds replace the pre-correction values (which contained hand-entry errors of up to 8% for 2019-2023), shifting SPM threshold, poverty, and poverty-gap levels for all modeled years; reform-impact deltas are largely unaffected.
diff --git a/policyengine_us/tests/policy/baseline/household/income/spm_unit/test_spm_unit_spm_threshold.py b/policyengine_us/tests/policy/baseline/household/income/spm_unit/test_spm_unit_spm_threshold.py
index 012c7b647f8..6860f60b991 100644
--- a/policyengine_us/tests/policy/baseline/household/income/spm_unit/test_spm_unit_spm_threshold.py
+++ b/policyengine_us/tests/policy/baseline/household/income/spm_unit/test_spm_unit_spm_threshold.py
@@ -1,14 +1,16 @@
 """Regression tests for the spm_unit_spm_threshold formula.
 
 Verifies that:
-1. Historical published years (2015-2024) match the Census Bureau's
-   published Betson reference thresholds exactly (via spm-calculator).
+1. Historical published years (2005-2024) match the corrected BLS
+   reference thresholds exactly (via spm-calculator >= 0.4.0, which
+   packages the full-precision series BLS reissued on 2026-07-17).
 2. Post-published years uprate via PolicyEngine's ``gov.bls.cpi.cpi_u``
    parameter.
 3. Composition and tenure changes between periods flow through to the
    threshold while applying the unit-specific geographic adjustment.
 4. The Betson three-parameter equivalence scale is applied (a 2A2C
-   reference family at the renter national base equals 39430 in 2024).
+   reference family at the renter national base equals 39,219.89 in
+   2024 under the corrected series).
 """
 
 import numpy as np
diff --git a/pyproject.toml b/pyproject.toml
index d8d3881be0b..d5efeecc25c 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -24,7 +24,7 @@ dependencies = [
     "microdf-python>=1.0.0",
     "pandas>=2.0",
     "policyengine-core>=3.26.5",
-    "spm-calculator>=0.2.0",
+    "spm-calculator>=0.4.0",
     "tables>=3.9",
     "tqdm>=4.67.1",
 ]