Tax Brackets 2026: Complete Guide to Federal Income Tax Rates
The 2026 federal income tax brackets keep the seven TCJA rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) that the One Big Beautiful Bill Act made permanent in July 2025. What moves each year is the dollar threshold for each bracket, which the IRS publishes in Rev. Proc. 2025-32. For 2026 every threshold is about 2.7 percent higher than 2025 to account for inflation. This guide walks through every bracket for every filing status, the standard deduction, how marginal vs effective rate actually work, and the OBBBA changes that took effect January 1, 2026.
2026 Federal Income Tax Brackets at a Glance
Single filers and married filing separately:
| Rate | Single / MFS Taxable Income |
|---|---|
| 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 $640,600 (single) / $384,350 (MFS) |
| 37% | over $640,600 (single) / $384,350 (MFS) |
Married filing jointly:
| Rate | MFJ Taxable Income |
|---|---|
| 10% | $0 to $24,800 |
| 12% | $24,800 to $100,800 |
| 22% | $100,800 to $211,400 |
| 24% | $211,400 to $403,550 |
| 32% | $403,550 to $512,450 |
| 35% | $512,450 to $768,700 |
| 37% | over $768,700 |
Head of household:
| Rate | HoH Taxable Income |
|---|---|
| 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 Standard Deduction
- Single and married filing separately: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
- Additional for age 65+ or blind: $1,650 per qualifying condition ($2,050 for unmarried filers who are not surviving spouses)
About 90 percent of taxpayers take the standard deduction. The remaining 10 percent itemize, mostly because their state and local taxes (SALT) plus mortgage interest plus charitable contributions exceed the standard. OBBBA's higher SALT cap of $40,400 for 2026 (up from $10,000 in 2024) pushed more high-tax-state filers back into itemizing.
Marginal Rate vs Effective Rate
Your marginal rate is the rate on your last dollar of income, also called your top bracket. Your effective rate is total tax divided by total income, which is always lower because earlier dollars are taxed at lower brackets.
Worked example: single filer with $75,000 of gross wages in 2026, taking the standard deduction.
- Taxable income = $75,000 - $16,100 standard deduction = $58,900
- 10 percent on first $12,400 = $1,240
- 12 percent on the next $38,000 ($12,400 to $50,400) = $4,560
- 22 percent on the next $8,500 ($50,400 to $58,900) = $1,870
- Federal income tax = $7,670
- Marginal rate: 22 percent (the rate on the last dollar)
- Effective rate: $7,670 / $75,000 = 10.2 percent
If a coworker tells you "I'm in the 22 percent bracket so I lose 22 cents on every dollar," they're wrong. They only pay 22 percent on the dollars above the 22 percent threshold.
What OBBBA Changed for 2026
The One Big Beautiful Bill Act (Pub. L. 119-21, July 4, 2025) did not change the rate structure but made several big-ticket adjustments:
- TCJA rates permanent: 10/12/22/24/32/35/37 indefinitely. No scheduled sunset.
- SALT cap raised to $40,400 for 2026, escalating 1 percent per year through 2029, reverting to $10,000 in 2030. Phase-out at 30 percent of MAGI above $500,500.
- Child Tax Credit raised to $2,200 per qualifying child under 17, with up to $1,700 refundable.
- Estate tax exemption permanent at $15 million per person, indexed.
- Tip income deduction: up to $25,000 above-the-line, phases out at $150k single / $300k MFJ MAGI, sunsets after 2028.
- Overtime pay deduction: $12,500 single / $25,000 MFJ on the FLSA-mandated half premium, same phase-out, same sunset.
- Senior bonus deduction: $6,000 per qualifying senior 65+ ($12,000 if both spouses qualify), phases out at $75k/$150k AGI, sunsets after 2028.
Capital Gains Brackets for 2026
Long-term capital gains have their own three-bracket structure separate from ordinary income:
| Rate | Single | MFJ | HoH |
|---|---|---|---|
| 0% | up to $49,450 | up to $98,900 | up to $66,200 |
| 15% | up to $545,500 | up to $613,700 | up to $579,600 |
| 20% | above $545,500 | above $613,700 | above $579,600 |
Short-term gains (held one year or less) are taxed at ordinary income rates.
Net Investment Income Tax (NIIT) of 3.8 percent stacks on top for investment income above $200,000 single / $250,000 MFJ MAGI. NIIT thresholds are statutory, not inflation-indexed, so they progressively capture more filers.
Other Indexed 2026 Numbers Worth Knowing
- 401(k) elective deferral: $24,500 (50+ catch-up $8,000; 60-63 super catch-up $11,250)
- IRA contribution: $7,500 ($1,100 catch-up)
- HSA: $4,400 self / $8,750 family
- Social Security wage base: $184,500
- Annual gift tax exclusion: $19,000
- FSA: $3,400
How to Use This for Tax Planning
Three things filer households commonly do at year-end with the bracket structure:
- Stay below the next bracket by contributing to 401(k), Traditional IRA, or HSA. A 22 percent filer who can shave $5,000 of AGI saves $1,100 in federal tax.
- Harvest gains in 0 percent territory if your taxable income leaves room in the 0 percent LTCG bracket ($49,450 single / $98,900 MFJ). Sell appreciated stock, repurchase, and your basis steps up tax-free.
- Roth conversions in low-income years. Early retirees between leaving work (no W-2) and starting RMDs at 73 often have a years-long window where 12 percent bracket conversions cost a fraction of what they'd cost at peak earnings.
Run your own 2026 federal + state tax estimate.
Open the Tax CalculatorFrequently Asked Questions
Did tax rates change in 2026?
No. The seven TCJA rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) were made permanent by OBBBA in July 2025. What changes each year is the dollar threshold for each bracket, which the IRS publishes in an annual revenue procedure (2025-32 for tax year 2026).
What is the 2026 standard deduction?
$16,100 single and married filing separately; $32,200 married filing jointly; $24,150 head of household. Additional $1,650 per qualifying condition for age 65+ or blind ($2,050 if unmarried and not a surviving spouse).
What is the difference between marginal and effective tax rate?
Marginal rate is the rate on your last dollar of income (your top bracket). Effective rate is total tax divided by total income, which is always lower because earlier dollars are taxed at lower brackets. A single filer earning $75,000 in 2026 has a 22 percent marginal rate but only a 10.2 percent effective rate.
How is the SALT cap different in 2026?
OBBBA raised the State And Local Tax deduction cap from $10,000 to $40,400 for 2026 (it rises 1% per year through 2029). The cap phases down by 30 cents per dollar of MAGI above $500,500, never below $10,000, and reverts to $10,000 in 2030. This made itemizing attractive again for many filers in high-tax states.
When are 2026 tax returns due?
April 15, 2027 for most filers. Extension to October 15, 2027 available via Form 4868. Estimated tax payments for 2026 are due April 15, June 15, September 15 of 2026, and January 15, 2027.
Do tax brackets apply to gross income or taxable income?
Taxable income, which is gross income minus above-the-line adjustments (like 401(k) and HSA contributions, half SE tax, etc.) minus the standard or itemized deduction minus QBI deduction. Capital gains and qualified dividends have their own bracket schedule.
Is short-term capital gain taxed at the long-term capital gain rate?
No. Short-term capital gains (assets held one year or less) are taxed at ordinary income rates, which can be much higher than the long-term rates of 0/15/20 percent. Holding for 366 days or more often saves significantly.