2026 Federal Income Tax Brackets
- Tammy Hoang
- Mar 30
- 4 min read
The IRS released its annual inflation adjustments for tax year 2026 in October 2025. These changes reflect amendments from the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, which made most Tax Cuts and Jobs Act provisions permanent and introduced several new benefits for taxpayers. The same seven tax rates apply as in 2025 — 10%, 12%, 22%, 24%, 32%, 35%, and 37% but income thresholds have been adjusted upward by an average of 2.7% to prevent bracket creep.
These figures apply to income earned in 2026. Returns will be filed in early 2027.
2026 Standard Deductions
The standard deduction is the flat amount most taxpayers subtract from their gross income before calculating taxes. For 2026, all filing statuses saw modest increases of about 2.2%.
Filing Status | 2025 | 2026 | +/- |
Single | $15,750 | $16,100 | +$350 |
Married Filing Jointly | $30,000 | $32,200 | +$2,200 |
Married Filing Separately | $15,000 | $16,100 | +$1,100 |
Head of Household | $22,500 | $24,150 | +$1,650 |
Taxpayers age 65 or older may claim an additional standard deduction on top of these amounts: $2,050 for single filers (not a surviving spouse) and $1,650 per qualifying spouse for those married filing jointly.
2026 Tax Brackets — Single Filers
Tax brackets are marginal, meaning only the income within each range is taxed at that rate — not your entire income.
Rate | Taxable Income | Tax Calculation |
10% | $0 – $11,925 | 10% of income |
12% | $11,926 – $48,475 | $1,192.50 + 12% over $11,925 |
22% | $48,476 – $103,350 | $5,578.50 + 22% over $48,475 |
24% | $103,351 – $197,300 | $17,651.50 + 24% over $103,350 |
32% | $197,301 – $250,525 | $40,199.50 + 32% over $197,300 |
35% | $250,526 – $640,600 | $57,231.50 + 35% over $250,525 |
37% | Over $640,600 | $193,854.75 + 37% over $640,600 |
2026 Tax Brackets — Married Filing Jointly
Rate | Taxable Income | Tax Calculation |
10% | $0 – $23,850 | 10% of income |
12% | $23,851 – $96,950 | $2,385 + 12% over $23,850 |
22% | $96,951 – $206,700 | $11,157 + 22% over $96,950 |
24% | $206,701 – $394,600 | $35,302 + 24% over $206,700 |
32% | $394,601 – $501,050 | $80,398 + 32% over $394,600 |
35% | $501,051 – $768,700 | $114,462 + 35% over $501,050 |
37% | Over $768,700 | $208,137.50 + 37% over $768,700 |
2026 Tax Brackets — Head of Household
Rate | Taxable Income | Tax Calculation |
10% | $0 – $17,000 | 10% of income |
12% | $17,001 – $64,850 | $1,700 + 12% over $17,000 |
22% | $64,851 – $103,350 | $7,442 + 22% over $64,850 |
24% | $103,351 – $197,300 | $15,912 + 24% over $103,350 |
32% | $197,301 – $250,500 | $38,460 + 32% over $197,300 |
35% | $250,501 – $640,600 | $55,484 + 35% over $250,500 |
37% | Over $640,600 | $192,024 + 37% over $640,600 |
Key Changes from the One Big Beautiful Bill Act
The One Big Beautiful Bill Act, signed July 4, 2025, made several significant changes to the tax code effective for 2025 and 2026:
What Changed | Details |
Tax Rates Made Permanent | The seven rates (10%–37%) are now permanent law. They were previously scheduled to expire after 2025. |
Tips Are Tax-Free | No federal income tax on tips starting with the 2025 tax year. Maximum $25,000/year. Tips must still be reported for Social Security and Medicare purposes. |
$6,000 Senior Deduction | An additional $6,000 deduction for taxpayers age 65 and older. Phases out above $75,000 MAGI for single filers and $150,000 for joint filers. Available for tax years 2025–2028 only. |
Estate Tax Exclusion | Raised to $15 million per person in 2026, up from $13.99 million in 2025. Made permanent and indexed to inflation going forward. |
Itemized Deductions | Unlimited itemized deductions are now permanent for most taxpayers. Those in the 37% bracket face a limitation on the tax benefit from their itemized deductions. |
EITC Increase | The maximum Earned Income Tax Credit for families with three or more qualifying children increases to $8,231, up from $8,046 in 2025. |
Other Key 2026 Numbers
Item | 2025 | 2026 |
FSA Contribution Limit | $3,300 | $3,400 |
FSA Maximum Carryover | $660 | $680 |
Qualified Parking / Transit (monthly) | $325 | $340 |
Annual Gift Tax Exclusion (per recipient) | $19,000 | $19,000 |
AMT Exemption — Single | $88,100 | $90,100 |
AMT Exemption — Married Filing Jointly | $137,000 | $140,200 |
Frequently Asked Questions
What is a marginal tax rate?
A marginal tax rate means you are taxed at different rates on different portions of your income. For example, if you are a single filer with $60,000 of taxable income in 2026, you do not pay 22% on the entire amount. You pay 10% on the first $11,925, 12% on income between $11,926 and $48,475, and 22% only on the amount above $48,475.
Did tax rates change for 2026?
No. The seven rates — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — are the same as 2025. What changed are the income thresholds for each bracket, which were adjusted upward by about 2.7% to account for inflation. The One Big Beautiful Bill Act made these rates permanent.
What is the new $6,000 senior deduction?
Taxpayers who are 65 or older may deduct an additional $6,000 from their taxable income. This deduction phases out for single filers with Modified Adjusted Gross Income (MAGI) above $75,000 and for joint filers above $150,000. It is available for tax years 2025 through 2028 only.
Are tips really tax-free in 2026?
Starting with the 2025 tax year, tips are exempt from federal income tax up to $25,000 per year. Tips must still be reported and are still subject to Social Security and Medicare taxes. This change applies to cash and electronic tips received in the course of employment.
When do I file my 2026 tax return?
Tax year 2026 returns are typically due in April 2027. These brackets apply to income earned January 1 – December 31, 2026.
Should I itemize or take the standard deduction in 2026?
Itemizing is only worth it if your qualifying deductions — such as mortgage interest, state and local taxes (SALT), charitable contributions, and medical expenses — exceed the standard deduction for your filing status. With the standard deduction now at $32,200 for married couples filing jointly, most taxpayers will still benefit from taking the standard deduction.
This content is for informational purposes only. Consult a qualified tax professional for advice specific to your situation.
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