The 2026 tax brackets keep seven federal income tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%), applied to inflation-adjusted income ranges that rose about 2.7% on average for the year (Source: IRS Rev. Proc. 2025-32). For a single filer, the 37% top rate now applies only to taxable income above $640,600; for married couples filing jointly, above $768,700.
The 2026 tax brackets use the same seven rates as 2025: 10%, 12%, 22%, 24%, 32%, 35%, and 37% (Source: IRS Rev. Proc. 2025-32). For a single filer, 10% covers the first $12,400 of taxable income and 37% applies above $640,600; for married filing jointly, 10% covers the first $24,800 and 37% applies above $768,700. The 2026 standard deduction is $16,100 (single) and $32,200 (joint).
What are the 2026 tax brackets?
The 2026 tax brackets are the seven marginal rates the IRS applies to taxable income earned from January 1 to December 31, 2026: 10%, 12%, 22%, 24%, 32%, 35%, and 37% (Source: IRS Rev. Proc. 2025-32, section 4.01). These are reported on returns filed in early 2027. The rates match 2025; only the inflation-adjusted income thresholds moved.
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The rates themselves did not change. The One Big Beautiful Bill Act (OBBBA, P.L. 119-21), signed in July 2025, made the rate structure from the 2017 Tax Cuts and Jobs Act permanent, so the 37% top rate did not revert to the pre-2018 level of 39.6% (Source: IRS, “IRS releases tax inflation adjustments for tax year 2026”). What moved for 2026 are the dollar thresholds, which the IRS indexed upward for inflation.
2026 tax brackets: Single filers
A single filer in 2026 pays 10% on the first $12,400 of taxable income and reaches the 37% top rate only on taxable income above $640,600 (Source: IRS Rev. Proc. 2025-32, Table 3). Each rate applies only to income within its range, not to the whole amount.
| Rate | Taxable income (Single) | Tax owed |
|---|---|---|
| 10% | $0 to $12,400 | 10% of taxable income |
| 12% | $12,400 to $50,400 | $1,240 plus 12% over $12,400 |
| 22% | $50,400 to $105,700 | $5,800 plus 22% over $50,400 |
| 24% | $105,700 to $201,775 | $17,966 plus 24% over $105,700 |
| 32% | $201,775 to $256,225 | $41,024 plus 32% over $201,775 |
| 35% | $256,225 to $640,600 | $58,448 plus 35% over $256,225 |
| 37% | Over $640,600 | $192,979.25 plus 37% over $640,600 |
2026 tax brackets: Married filing jointly
Married couples filing jointly (and qualifying surviving spouses) in 2026 pay 10% on the first $24,800 of taxable income and reach the 37% rate only above $768,700 (Source: IRS Rev. Proc. 2025-32, Table 1). The 2026 joint 37% floor is $768,700, per Rev. Proc. 2025-32.
| Rate | Taxable income (MFJ) | Tax owed |
|---|---|---|
| 10% | $0 to $24,800 | 10% of taxable income |
| 12% | $24,800 to $100,800 | $2,480 plus 12% over $24,800 |
| 22% | $100,800 to $211,400 | $11,600 plus 22% over $100,800 |
| 24% | $211,400 to $403,550 | $35,932 plus 24% over $211,400 |
| 32% | $403,550 to $512,450 | $82,048 plus 32% over $403,550 |
| 35% | $512,450 to $768,700 | $116,896 plus 35% over $512,450 |
| 37% | Over $768,700 | $206,583.50 plus 37% over $768,700 |
2026 tax brackets: Head of household
Head of household filers in 2026 pay 10% on the first $17,700 of taxable income, with the 37% rate starting above $640,600 (Source: IRS Rev. Proc. 2025-32, Table 2). This status is available to certain unmarried taxpayers who pay more than half the cost of keeping up a home for a qualifying person.
| Rate | Taxable income (Head of household) |
|---|---|
| 10% | $0 to $17,700 |
| 12% | $17,700 to $67,450 |
| 22% | $67,450 to $105,700 |
| 24% | $105,700 to $201,775 |
| 32% | $201,775 to $256,225 |
| 35% | $256,225 to $640,600 |
| 37% | Over $640,600 |
2026 tax brackets: Married filing separately
Married taxpayers who file separately in 2026 pay 10% on the first $12,400 of taxable income, and the 37% rate begins above $384,350 (Source: IRS Rev. Proc. 2025-32, Table 4). The lower brackets mirror the single schedule, but the top-bracket floor is roughly half the joint amount.
| Rate | Taxable income (MFS) |
|---|---|
| 10% | $0 to $12,400 |
| 12% | $12,400 to $50,400 |
| 22% | $50,400 to $105,700 |
| 24% | $105,700 to $201,775 |
| 32% | $201,775 to $256,225 |
| 35% | $256,225 to $384,350 |
| 37% | Over $384,350 |
How do tax brackets work?
Federal tax brackets are progressive, so a higher 2026 rate applies only to the income that falls within that bracket, not to your whole income (Source: IRS Rev. Proc. 2025-32). Moving into a higher bracket does not re-tax the dollars below it. Only the portion above each threshold is taxed at the new rate.
Consider a single filer with $70,000 of taxable income in 2026. The first $12,400 is taxed at 10%, the next $38,000 (from $12,400 to $50,400) at 12%, and the remaining $19,600 (from $50,400 to $70,000) at 22%. The 22% rate touches only that last slice, so the total tax is $1,240 plus $4,560 plus $4,312, or $10,112.
What is the difference between marginal and effective tax rates?
Your marginal rate is the rate on your next dollar of income (the top bracket you reach), while your effective rate is total tax divided by total taxable income (Source: IRS Rev. Proc. 2025-32). The effective rate is lower because the earlier brackets tax income at 10%, 12%, and so on. The gap matters when you compare planning scenarios.
Take the $70,000 single filer above. The tax is $10,112, so the marginal rate is 22% but the effective rate is about 14.4% ($10,112 divided by $70,000). Many retirees weigh this gap with a qualified professional when considering a Roth conversion, because a conversion adds taxable ordinary income in the year it happens and can be sized to fill a lower bracket rather than spill into the next one.
What is the standard deduction for 2026?
The 2026 standard deduction is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for head of household (Source: IRS Rev. Proc. 2025-32, section 4.14). You subtract the standard deduction from gross income (along with other adjustments) to reach taxable income before the brackets apply.
Taxpayers who are age 65 or older, or blind, may add an additional standard deduction: $2,050 for an unmarried person who is not a surviving spouse, or $1,650 per qualifying condition for married filers (Source: IRS Rev. Proc. 2025-32, section 4.14). A dependent’s standard deduction is the greater of $1,350 or earned income plus $450.
| Filing status | 2025 standard deduction | 2026 standard deduction |
|---|---|---|
| Single | $15,750 | $16,100 |
| Married filing jointly | $31,500 | $32,200 |
| Married filing separately | $15,750 | $16,100 |
| Head of household | $23,625 | $24,150 |
How much can I earn before paying 37% tax in 2026?
In 2026, the 37% top marginal rate applies to taxable income above $640,600 for single and head of household filers, above $768,700 for married couples filing jointly, and above $384,350 for married filing separately (Source: IRS Rev. Proc. 2025-32). Only income above these amounts is taxed at 37%; everything below is taxed in the lower brackets.
| Filing status | 37% applies to taxable income above |
|---|---|
| Single | $640,600 |
| Married filing jointly | $768,700 |
| Head of household | $640,600 |
| Married filing separately | $384,350 |
Did tax rates go up in 2026? The new OBBBA deductions
Federal income tax rates did not go up in 2026; they remain 10% to 37%, and OBBBA (P.L. 119-21) made the 2017 rate structure permanent (Source: IRS, “IRS releases tax inflation adjustments for tax year 2026”). OBBBA also added several new deductions that can lower taxable income for tax years 2025 through 2028, separate from the bracket adjustments, each with its own eligibility rules.
| Deduction | Maximum | MAGI phaseout begins | Years |
|---|---|---|---|
| Qualified tips | $25,000 | $150,000 single / $300,000 joint | 2025 to 2028 |
| Qualified overtime | $12,500 single / $25,000 joint | $150,000 single / $300,000 joint | 2025 to 2028 |
| Car loan interest (US-assembled vehicles) | $10,000 | $100,000 single / $200,000 joint | 2025 to 2028 |
| Senior deduction (age 65+) | $6,000 per person | $75,000 single / $150,000 joint | 2025 to 2028 |
| Non-itemizer charitable | $1,000 single / $2,000 joint | Not income-phased | 2026 onward |
The $6,000 senior deduction sits on top of the existing additional standard deduction for age 65+, and it phases out at higher income. The non-itemizer charitable deduction lets filers who take the standard deduction still deduct cash gifts to charity, starting in 2026 (Source: IRS, “New and enhanced deductions for individuals”). These above-the-line deductions can shrink the taxable income that the brackets are applied to.
How are the 2026 tax brackets different from 2025?
The rates are identical to 2025, but 2026 inflation-adjusted thresholds rose about 2.7% on average, and OBBBA added a further inflation adjustment for the bottom two brackets (Source: IRS, “IRS releases tax inflation adjustments for tax year 2026”). The 10% and 12% brackets received about a 4% adjustment while the higher brackets received about 2.3%, so the exact increase varies by bracket.
Because the brackets widened and the standard deduction rose, a household with the same nominal income in 2026 as in 2025 generally owes slightly less federal income tax. A single filer with $70,000 of taxable income owes about $10,112 in 2026 versus roughly $10,314 on the same taxable income in 2025, a difference of about $202 for the year (Source: IRS Rev. Proc. 2025-32; 2024-40). Actual take-home change depends on withholding, state tax, and any new OBBBA deductions you qualify for.
2026 long-term capital gains brackets
Long-term capital gains and qualified dividends in 2026 are taxed at 0%, 15%, or 20%, using income breakpoints separate from the ordinary brackets (Source: IRS Rev. Proc. 2025-32, section 4.03). For a single filer, the 15% rate starts at $49,450 of taxable income; for married filing jointly, at $98,900; for head of household, at $66,200. A deeper treatment lives on our 2026 capital gains tax rate page.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $66,200 |
| 15% | $49,450 to $545,500 | $98,900 to $613,700 | $66,200 to $579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $579,600 |
Taxpayers with modified adjusted gross income above $200,000 (single or head of household) or $250,000 (married filing jointly) may also owe the 3.8% Net Investment Income Tax on top of these rates; these statutory thresholds are set by law and are not indexed for inflation (Source: IRS, “Questions and Answers on the Net Investment Income Tax”; IRC section 1411). See our 2026 Net Investment Income Tax guide for details.
Other 2026 figures tied to the brackets
Several 2026 amounts move with the same inflation adjustments as the tax brackets, including the Alternative Minimum Tax exemption, the Child Tax Credit and Earned Income Tax Credit, and the estate and gift limits set under OBBBA (Source: IRS Rev. Proc. 2025-32; OBBBA). The table below collects the commonly referenced 2026 figures, each drawn from the IRS inflation-adjustment guidance for the year.
| Item (2026) | Amount |
|---|---|
| AMT exemption (single) | $90,100 (phaseout begins $500,000) |
| AMT exemption (MFJ) | $140,200 (phaseout begins $1,000,000) |
| Child Tax Credit (max per child) | $2,200 (about $1,700 refundable) |
| EITC max (3+ children) | $8,231 |
| Estate basic exclusion | $15,000,000 per person |
| Annual gift tax exclusion | $19,000 per donee |
The estate and gift lifetime exemption rose to $15 million per person effective January 1, 2026 under OBBBA and is indexed for inflation after 2026; the annual gift tax exclusion for 2026 is $19,000 per donee (Source: IRS Rev. Proc. 2025-32; OBBBA). The maximum Child Tax Credit is $2,200 per qualifying child, of which up to $1,700 is refundable as the Additional Child Tax Credit (Source: IRS, “Child Tax Credit”; OBBBA). Retirees taking withdrawals may also want to review the 2026 required minimum distribution rules, since an RMD is taxable ordinary income and cannot itself be converted to a Roth.
How to find which bracket you are in
Your 2026 tax bracket is determined by taxable income and filing status, not by gross pay, so the process is to reduce income by adjustments and deductions first, then read the rate schedule that matches your status (Source: IRS Rev. Proc. 2025-32). The bracket you land in is the rate on your last dollar, not on every dollar. Here is the sequence to follow.
- Add up gross income for 2026 (wages, self-employment, taxable interest, taxable retirement distributions, and similar).
- Subtract adjustments and either the standard deduction ($16,100 single or $32,200 MFJ) or itemized deductions to reach taxable income.
- Find your filing status in the tables above and locate the row where your taxable income falls; that row is your marginal bracket.
- Compute total tax using the “tax owed” column, or divide total tax by taxable income for your effective rate.
Retirees weighing withdrawals or conversions often coordinate this step with Medicare premium tiers and Social Security taxation, since added income can trigger the Social Security tax torpedo or push them into higher 2026 Medicare IRMAA brackets.
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This page is educational and is not advice; consult a qualified professional.
Frequently asked questions
What are the 2026 tax brackets?
The 2026 federal income tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37% (Source: IRS Rev. Proc. 2025-32). For a single filer, 10% covers the first $12,400 of taxable income and 37% applies above $640,600. For married filing jointly, 10% covers the first $24,800 and 37% applies above $768,700. Rates match 2025; the thresholds rose for inflation.
How much can I earn before paying 37% tax in 2026?
In 2026, the 37% top marginal rate applies to taxable income above $640,600 for single filers and above $768,700 for married couples filing jointly (Source: IRS Rev. Proc. 2025-32). For head of household the floor is $640,600, and for married filing separately it is $384,350. Only income above these amounts is taxed at 37%; the rest is taxed in lower brackets.
Did tax rates go up in 2026?
No. Federal income tax rates stayed at 10% to 37% for 2026, and OBBBA (P.L. 119-21, July 2025) made the prior rate structure permanent (Source: IRS, “IRS releases tax inflation adjustments for tax year 2026”). Because brackets widened and the standard deduction rose, many households owe slightly less on the same nominal income, and new OBBBA deductions may reduce taxable income further.
What is the standard deduction for 2026?
The 2026 standard deduction is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for head of household (Source: IRS Rev. Proc. 2025-32). Taxpayers age 65 or older or blind may add $2,050 (unmarried) or $1,650 per condition (married). New OBBBA deductions may further reduce taxable income for 2025 through 2028.
How are the 2026 tax brackets different from 2025?
The rates are the same in 2026 and 2025, but the 2026 income thresholds rose about 2.7% on average for inflation, with lower brackets up roughly 4% and upper brackets up about 2.3% (Source: IRS, “IRS releases tax inflation adjustments for tax year 2026”). The standard deduction also increased, for example from $31,500 to $32,200 for married filing jointly. OBBBA added a further inflation adjustment to the bottom two brackets.
What tax bracket am I in?
Your bracket is set by taxable income and filing status, not gross pay (Source: IRS Rev. Proc. 2025-32). Subtract the 2026 standard deduction ($16,100 single, $32,200 MFJ) or itemized deductions from income, then find where the result lands in your filing-status table. The rate on that top slice is your marginal bracket; your effective rate is total tax divided by taxable income.
When do the 2026 tax brackets take effect?
The 2026 tax brackets apply to income earned from January 1 through December 31, 2026, and are used on returns filed in early 2027 (Source: IRS Rev. Proc. 2025-32). Employers generally reflect the adjusted thresholds in payroll withholding starting in January 2026, though the amount withheld depends on your Form W-4 elections.
Sources
IRS Revenue Procedure 2025-32 (2026 inflation adjustments, reflecting OBBBA): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf.
IRS, “IRS releases tax inflation adjustments for tax year 2026, including amendments from the One Big Beautiful Bill”: https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill.
IRS, “New and enhanced deductions for individuals” and “One Big Beautiful Bill Act: Tax deductions for working Americans and seniors”: https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals.
IRS, “Questions and Answers on the Net Investment Income Tax” (IRC section 1411): https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax.
IRS, “Child Tax Credit”: https://www.irs.gov/credits-deductions/individuals/child-tax-credit.
IRS Revenue Procedure 2024-40 (2025 inflation adjustments, for comparison).
About the author
This article is provided for educational and informational purposes only and does not constitute tax, legal, or investment advice, nor a recommendation to take any particular action. Tax figures are drawn from IRS publications for tax year 2026 and may change; the treatment of any specific situation can vary depending on individual circumstances. Consult a qualified tax or financial professional before acting. Q3 Advisors is a registered investment adviser; registration does not imply a certain level of skill or training. Additional information is available in our Form ADV.
