Every year the IRS adjusts federal income tax brackets for inflation, so the same income can land in a slightly different place from one year to the next. For 2026, those adjustments carry extra weight. The One Big Beautiful Bill Act (OBBBA), signed in July 2025, made the seven tax rates created in 2017 permanent instead of letting them expire after 2025, and it gave the two lowest brackets a larger-than-usual inflation boost. This guide lays out the 2026 tax brackets for each major filing status, explains how marginal rates actually work, and shows how to estimate your own tax.
*This article is for general information only and is not tax advice. Your situation may differ, so confirm details with the IRS or a qualified tax professional.*
What changed for 2026
Before OBBBA, the rates from the Tax Cuts and Jobs Act of 2017 were scheduled to expire at the end of 2025. Had that happened, most rates would have risen in 2026 and the top rate would have returned to 39.6%. Instead, OBBBA kept the seven rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37% permanently.
The IRS published the 2026 figures in Revenue Procedure 2025-32. According to the Tax Foundation’s analysis, the 10% and 12% bracket thresholds rose about 4%, while the higher brackets rose about 2.3%. These figures apply to income earned in 2026, which most people will report on returns filed in early 2027.
2026 federal income tax brackets
The brackets below apply to taxable income, meaning income after deductions such as the standard deduction.
Single filers
| Tax rate | Taxable income |
|---|---|
| 10% | $0 to $12,400 |
| 12% | $12,401 to $50,400 |
| 22% | $50,401 to $105,700 |
| 24% | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 |
| 35% | $256,226 to $640,600 |
| 37% | Over $640,600 |
Married filing jointly
| Tax rate | Taxable income |
|---|---|
| 10% | $0 to $24,800 |
| 12% | $24,801 to $100,800 |
| 22% | $100,801 to $211,400 |
| 24% | $211,401 to $403,550 |
| 32% | $403,551 to $512,450 |
| 35% | $512,451 to $768,700 |
| 37% | Over $768,700 |
Head of household
| Tax rate | Taxable income |
|---|---|
| 10% | $0 to $17,700 |
| 12% | $17,701 to $67,450 |
| 22% | $67,451 to $105,700 |
| 24% | $105,701 to $201,750 |
| 32% | $201,751 to $256,200 |
| 35% | $256,201 to $640,600 |
| 37% | Over $640,600 |
Married couples filing separately generally use thresholds equal to half of the joint amounts, except at the top bracket. Check the IRS tables for exact figures if you file separately.
How marginal tax rates actually work
One of the most common misunderstandings in personal finance is the belief that moving into a higher bracket raises the tax on all of your income. It does not. The U.S. uses a progressive system, so each rate applies only to the slice of income that falls inside its bracket.
Imagine your taxable income as water filling a series of buckets. The first bucket is taxed at 10%. Once it is full, the next dollars spill into the 12% bucket, and so on. Your marginal rate is the rate on your last dollar. Your effective rate is your total tax divided by your income, and it is always lower than your marginal rate once you earn past the first bracket.
This means a raise never reduces your take-home pay because of income tax brackets alone. At worst, the extra dollars are taxed at the higher rate. (Certain credits and benefits that phase out with income can create higher effective marginal rates in specific ranges, which is a separate issue.)
Step-by-step example
Suppose a single filer earns $60,000 in wages in 2026 and takes the standard deduction.
- Start with income: $60,000.
- Subtract the 2026 standard deduction for single filers: $16,100. Taxable income is $43,900.
- Apply the 10% bracket: 10% of the first $12,400 = $1,240.
- Apply the 12% bracket: the remaining $31,500 ($43,900 minus $12,400) × 12% = $3,780.
- Add them up: $1,240 + $3,780 = $5,020 of federal income tax before credits.
This filer’s marginal rate is 12%. The effective rate on taxable income is about 11.4%, and on the full $60,000 of wages it is about 8.4%. Credits such as the child tax credit would reduce the bill further, while payroll taxes for Social Security and Medicare are calculated separately.
2026 standard deduction
Most taxpayers take the standard deduction rather than itemizing. OBBBA made the higher standard deduction permanent. For 2026 the amounts are:
| Filing status | 2026 standard deduction |
|---|---|
| Single or married filing separately | $16,100 |
| Married filing jointly | $32,200 |
| Head of household | $24,150 |
Taxpayers 65 or older or blind receive an additional standard deduction. In addition, for 2025 through 2028, OBBBA created a separate deduction of up to $6,000 per eligible person age 65 or older, which phases out above $75,000 of modified adjusted gross income ($150,000 for joint filers).
Other OBBBA deductions that lower taxable income
Several temporary deductions created by OBBBA can reduce taxable income for 2025 through 2028, even if you do not itemize. They are claimed on Schedule 1-A:
- No tax on tips: up to $25,000 of qualified tips for workers in eligible occupations, phasing out above $150,000 of MAGI ($300,000 joint).
- No tax on overtime: up to $12,500 ($25,000 joint) of the premium portion of qualified overtime pay, with the same income thresholds.
- Car loan interest: up to $10,000 of interest on a loan for a new, U.S.-assembled vehicle, phasing out above $100,000 ($200,000 joint).
- Senior deduction: up to $6,000 per person 65 or older, as described above.
Because these deductions reduce taxable income, they can move part of your income into a lower bracket.
Ways to lower the bracket your income lands in
Since brackets apply to taxable income, legitimate ways to reduce it include:
- Contributing to pre-tax retirement accounts. In 2026 you can defer up to $24,500 into a 401(k), 403(b), or most 457 plans, plus catch-up contributions if you are 50 or older.
- Funding a health savings account. If you have an HSA-eligible health plan, 2026 contributions of up to $4,400 for self-only coverage or $8,750 for family coverage are deductible.
- Making deductible traditional IRA contributions, if you qualify based on income and workplace plan coverage.
- Itemizing when it beats the standard deduction, particularly now that the SALT deduction cap is $40,400 for 2026 for most filers.
- Timing income and deductions. Self-employed people and those with flexible bonuses may be able to shift income between years.
Brackets for capital gains are different
Long-term capital gains and qualified dividends use separate rates of 0%, 15%, and 20%, with their own income thresholds. Short-term gains, from assets held a year or less, are taxed as ordinary income using the brackets above. High earners may also owe the 3.8% net investment income tax.
Frequently Asked Questions
What are the 2026 federal tax rates?
There are seven rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. OBBBA made these rates permanent.
Will moving into a higher tax bracket reduce my take-home pay?
No. Only the income inside the higher bracket is taxed at the higher rate. The rest of your income is taxed at the same lower rates as before.
When do the 2026 brackets apply?
They apply to income earned from January 1 through December 31, 2026. Most people will use them on the return they file in early 2027.
What is the top tax bracket for 2026?
The 37% rate applies to taxable income over $640,600 for single filers and heads of household, and over $768,700 for married couples filing jointly.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate on your last dollar of taxable income. Your effective rate is your total tax divided by your income, which is lower because earlier dollars are taxed at lower rates.
Do tax brackets apply to my gross income?
No. They apply to taxable income, which is gross income minus adjustments and either the standard deduction or itemized deductions.
The bottom line
The 2026 tax brackets keep the familiar seven-rate structure, now made permanent, with thresholds adjusted upward for inflation. Knowing your bracket helps you estimate the value of a deduction, the tax on a raise, or the benefit of a pre-tax retirement contribution. Remember that brackets apply to taxable income and only to the slice of income within each range, so a higher bracket is rarely as costly as it sounds.
This article is for general informational purposes only and is not legal, medical, tax, or financial advice. Rules vary by state and change over time; confirm details with the relevant agency or a licensed professional.
