The 2026 tax brackets keep seven federal income tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%), with inflation-adjusted parameters rising about 2.7% on average for 2026 (Source: IRS, “IRS releases tax inflation adjustments for tax year 2026”; IRS Rev. Proc. 2025-32). For a single filer, the top 37% rate now applies only to taxable income above $640,600; for married couples filing jointly, above $768,700.
The 2026 federal income tax brackets use the same seven rates as 2025 (10% to 37%), applied to inflation-adjusted income ranges. A single filer’s brackets run from 10% on the first $12,400 of taxable income up to 37% above $640,600. The 2026 standard deduction is $16,100 (single), $32,200 (married filing jointly), and $24,150 (head of household) (Source: IRS Rev. Proc. 2025-32).
What are the 2026 tax brackets?
The 2026 federal income tax system has seven marginal brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37% (Source: IRS Rev. Proc. 2025-32, section 4.01). These are the rates for tax year 2026, meaning income earned from January 1 to December 31, 2026, reported on returns filed in early 2027.
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The rates themselves did not change from 2025. The One Big Beautiful Bill Act (OBBBA), 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 39.6% (Source: IRS, “IRS releases tax inflation adjustments for tax year 2026”). What moved for 2026 are the income 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). The full schedule below shows the rate that applies to income within each range, not to your entire income.
| Rate | Taxable income (Single) | Tax owed |
|---|---|---|
| 10% | $0 to $12,400 | 10% of taxable income |
| 12% | $12,400 to $50,400 | $1,240 + 12% over $12,400 |
| 22% | $50,400 to $105,700 | $5,800 + 22% over $50,400 |
| 24% | $105,700 to $201,775 | $17,966 + 24% over $105,700 |
| 32% | $201,775 to $256,225 | $41,024 + 32% over $201,775 |
| 35% | $256,225 to $640,600 | $58,448 + 35% over $256,225 |
| 37% | Over $640,600 | $192,979.25 + 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). Some earlier drafts circulating online showed $768,600; the correct IRS threshold is $768,700.
| Rate | Taxable income (MFJ) | Tax owed |
|---|---|---|
| 10% | $0 to $24,800 | 10% of taxable income |
| 12% | $24,800 to $100,800 | $2,480 + 12% over $24,800 |
| 22% | $100,800 to $211,400 | $11,600 + 22% over $100,800 |
| 24% | $211,400 to $403,550 | $35,932 + 24% over $211,400 |
| 32% | $403,550 to $512,450 | $82,048 + 32% over $403,550 |
| 35% | $512,450 to $768,700 | $116,896 + 35% over $512,450 |
| 37% | Over $768,700 | $206,583.50 + 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 $201,750 |
| 32% | $201,750 to $256,200 |
| 35% | $256,200 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 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 the 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, not the full $70,000.
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); your effective rate is the total tax divided by total taxable income, which is lower because the earlier brackets tax income at 10%, 12%, and so on (Source: IRS Rev. Proc. 2025-32). The distinction matters for comparing scenarios such as a Roth conversion.
Take the $70,000 single filer above. The tax is $1,240 (10% bracket) + $4,560 (12% bracket) + $4,312 (22% bracket) = $10,112. That filer’s marginal rate is 22%, but the effective rate is about 14.4% ($10,112 divided by $70,000). This gap is one factor some households weigh with a qualified professional when considering a Roth conversion, where filling a lower bracket intentionally is one approach that may be evaluated.
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 are the 2026 tax brackets different from 2025?
The rates are identical to 2025, but 2026 inflation-adjusted parameters 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”). Under OBBBA, the 10% and 12% brackets received a 4% inflation adjustment while the higher brackets received about 2.3%, so the exact increase varies by bracket (Source: IRS, “IRS releases tax inflation adjustments for tax year 2026”; OBBBA).
Because the brackets widened, a household with the same nominal income in 2026 as in 2025 generally owes slightly less federal income tax, since more income falls into lower brackets and the standard deduction is larger (Source: IRS Rev. Proc. 2025-32). The change per paycheck is often modest but compounds across a full year.
Did tax rates go up in 2026? The new OBBBA deductions
Federal income tax rates did not go up in 2026; they stayed at 10% to 37%, and OBBBA added several new deductions that can lower taxable income for tax years 2025 through 2028 (Source: IRS, “One Big Beautiful Bill Act: Tax deductions for working Americans and seniors”). Many 2026 guides omit these, yet they can change take-home pay and refunds more than the bracket adjustments do.
| 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 senior deduction is 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”). Each deduction has eligibility rules the IRS details on its OBBBA provisions pages.
What this means for your paycheck
Because brackets widened and the standard deduction rose, 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 separate income breakpoints 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. 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 NIIT 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 most commonly referenced figures for 2026, 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 |
| 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 for 2026, of which up to $1,700 is refundable as the Additional Child Tax Credit (Source: IRS, “Child Tax Credit”; OBBBA). Retirement savers should also review the separate 2026 retirement contribution limits, which the IRS set in Notice 2025-67 (for example, the IRA limit is $7,500 with a $1,100 age-50 catch-up, and the 401(k) deferral limit is $24,500).
How to find which bracket you are in
Your 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, and similar).
- Subtract adjustments and either the standard deduction ($16,100 single / $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 sometimes coordinate this with Medicare premium tiers and Social Security taxation, since income can trigger the Social Security tax torpedo or higher 2026 Medicare IRMAA brackets.
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This article is educational and is not advice; for guidance on your own circumstances, consult a qualified tax or financial 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 do tax brackets work?
Federal brackets are progressive, so each rate applies only to income within its range, not to your entire income (Source: IRS Rev. Proc. 2025-32). If a single filer earns $70,000 in taxable income in 2026, only the amount above $50,400 is taxed at 22%. The dollars below are taxed at 10% and 12%. Reaching a higher bracket never re-taxes lower income.
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.
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 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.
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.
Did tax rates go up in 2026?
No. Federal income tax rates stayed at 10% to 37% for 2026, and OBBBA (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.
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 Notice 2025-67 (2026 retirement plan contribution limits): https://www.irs.gov/pub/irs-drop/n-25-67.pdf.
IRS Revenue Procedure 2024-40 (2025 inflation adjustments, for comparison).
About the author
Disclaimer
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; additional information is available in our Form ADV.
