2026 Federal Income Tax Brackets & Rates

Complete guide to all 2026 federal tax brackets by filing status, including standard deductions, capital gains rates, and how marginal tax rates work

✓ Key Highlights for 2026

  • Seven federal tax brackets remain: 10%, 12%, 22%, 24%, 32%, 35%, and 37%
  • All income thresholds adjusted upward for inflation under the One Big Beautiful Bill Act (OBBBA)
  • Standard deduction increased to $16,100 (single) and $32,200 (married filing jointly)
  • SALT deduction cap raised from $10,000 to $40,000
  • Overtime pay and tips exempt from federal income tax for eligible workers
  • New $4,000 senior bonus deduction for taxpayers age 65 and older

Understanding Federal Income Tax Brackets

The United States uses a progressive tax system, meaning your income is taxed at increasing rates as it rises through each bracket. The federal government currently maintains seven tax brackets, ranging from 10% to 37%. These brackets are adjusted annually for inflation, and 2026 saw significant adjustments under the One Big Beautiful Bill Act (OBBBA).

It is critical to understand that moving into a higher tax bracket does not mean all your income is taxed at that rate. Only the income within each bracket is taxed at that bracket's rate. This distinction between marginal and effective tax rates is one of the most misunderstood concepts in personal finance.

Your taxable income is your gross income minus deductions (standard or itemized). The brackets below apply to your taxable income, not your total earnings. Use our Federal Income Tax Calculator to compute your exact tax liability.

2026 Tax Brackets by Filing Status

Select your filing status below to see the applicable brackets, income ranges, and approximate tax owed at each level.

Tax RateTaxable Income RangeTax Owed
10%$0 – $11,92510% of taxable income
12%$11,926 – $48,475$1,192.50 + 12% of amount over $11,925
22%$48,476 – $103,350$5,578.50 + 22% of amount over $48,475
24%$103,351 – $197,300$17,651.00 + 24% of amount over $103,350
32%$197,301 – $250,525$40,199.00 + 32% of amount over $197,300
35%$250,526 – $626,350$57,231.00 + 35% of amount over $250,525
37%Over $626,350$188,769.75 + 37% of amount over $626,350
Tax RateTaxable Income RangeTax Owed
10%$0 – $23,85010% of taxable income
12%$23,851 – $96,950$2,385.00 + 12% of amount over $23,850
22%$96,951 – $206,700$11,157.00 + 22% of amount over $96,950
24%$206,701 – $394,600$35,302.00 + 24% of amount over $206,700
32%$394,601 – $501,050$80,398.00 + 32% of amount over $394,600
35%$501,051 – $752,800$114,462.00 + 35% of amount over $501,050
37%Over $752,800$202,574.50 + 37% of amount over $752,800
Tax RateTaxable Income RangeTax Owed
10%$0 – $11,92510% of taxable income
12%$11,926 – $48,475$1,192.50 + 12% of amount over $11,925
22%$48,476 – $103,350$5,578.50 + 22% of amount over $48,475
24%$103,351 – $197,300$17,651.00 + 24% of amount over $103,350
32%$197,301 – $250,525$40,199.00 + 32% of amount over $197,300
35%$250,526 – $376,400$57,231.00 + 35% of amount over $250,525
37%Over $376,400$101,287.25 + 37% of amount over $376,400
Tax RateTaxable Income RangeTax Owed
10%$0 – $17,00010% of taxable income
12%$17,001 – $64,850$1,700.00 + 12% of amount over $17,000
22%$64,851 – $103,350$7,442.00 + 22% of amount over $64,850
24%$103,351 – $197,300$15,912.00 + 24% of amount over $103,350
32%$197,301 – $250,500$38,460.00 + 32% of amount over $197,300
35%$250,501 – $626,350$55,484.00 + 35% of amount over $250,500
37%Over $626,350$187,031.50 + 37% of amount over $626,350

Calculate Your Exact Tax

Use our free calculator to see your tax liability, effective rate, and take-home pay for 2026.

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2026 Standard Deduction Amounts

The standard deduction is subtracted from your gross income before the tax brackets are applied. Most taxpayers benefit from taking the standard deduction rather than itemizing. For 2026, the amounts are:

Filing StatusStandard DeductionAdditional for 65+ / Blind
Single$16,100+$2,000 each
Married Filing Jointly$32,200+$1,600 each (per spouse)
Married Filing Separately$16,100+$1,600 each
Head of Household$23,850+$2,000 each

Under OBBBA, taxpayers age 65 and older also receive a $4,000 senior bonus deduction, which is an additional above-the-line deduction on top of the standard or itemized deduction.

Marginal vs. Effective Tax Rate: A Worked Example

Understanding the difference between these two rates is essential for financial planning. Let us walk through a concrete example.

Example: Single filer with $85,000 gross income

Step 1: Calculate taxable income
$85,000 gross income − $16,100 standard deduction = $68,900 taxable income

Step 2: Apply brackets progressively

  • 10% on first $11,925 = $1,192.50
  • 12% on $11,926 to $48,475 ($36,550) = $4,386.00
  • 22% on $48,476 to $68,900 ($20,425) = $4,493.50

Total tax: $10,072.00

Marginal tax rate: 22% (the bracket your last dollar falls in)
Effective tax rate: $10,072 / $85,000 = 11.85% (total tax as a percentage of gross income)

Even though this taxpayer is "in the 22% bracket," they effectively pay only 11.85% of their total income in federal income tax. This is why earning more never results in taking home less money due to a higher bracket.

2026 Capital Gains Tax Rates

Long-term capital gains (from assets held longer than one year) are taxed at preferential rates, separate from the ordinary income brackets above. Short-term capital gains are taxed as ordinary income.

Capital Gains RateSingleMarried Filing JointlyHead of Household
0%Up to $48,350Up to $96,700Up to $64,750
15%$48,351 – $533,400$96,701 – $600,050$64,751 – $566,700
20%Over $533,400Over $600,050Over $566,700

In addition, high-income taxpayers may owe the 3.8% Net Investment Income Tax (NIIT) on investment income if their modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly). Use our Capital Gains Tax Calculator to estimate your liability.

How 2026 Brackets Differ from 2025

The One Big Beautiful Bill Act (OBBBA) brought several significant changes for the 2026 tax year compared to 2025:

  • Higher income thresholds: All bracket boundaries were adjusted upward by approximately 2.8% to account for inflation, meaning more income is taxed at lower rates.
  • Larger standard deduction: Increased from $15,700 to $16,100 for single filers and from $31,400 to $32,200 for married filing jointly.
  • SALT cap increase: The state and local tax deduction cap quadrupled from $10,000 to $40,000, providing significant relief for taxpayers in high-tax states.
  • Overtime exemption: W-2 employees working over 40 hours per week no longer owe federal income tax on overtime pay (FICA still applies).
  • Tips exemption: Service workers' tips are exempt from federal income tax (FICA still applies).
  • Senior bonus deduction: A new $4,000 above-the-line deduction for taxpayers age 65 and older.
  • Same rates: The seven bracket percentages (10% through 37%) remain unchanged from 2025.

Frequently Asked Questions

What are the 2026 federal income tax brackets?
The 2026 federal tax brackets have seven rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The income thresholds vary by filing status. For single filers, the brackets are: 10% ($0–$11,925), 12% ($11,926–$48,475), 22% ($48,476–$103,350), 24% ($103,351–$197,300), 32% ($197,301–$250,525), 35% ($250,526–$626,350), and 37% (over $626,350).
What is the difference between marginal and effective tax rates?
Your marginal tax rate is the rate applied to your last dollar of income — it is the highest bracket your income reaches. Your effective tax rate is the average rate you actually pay across all your income, calculated as total tax divided by gross income. Because the US uses graduated brackets, your effective rate is always lower than your marginal rate. For example, a single filer earning $85,000 has a 22% marginal rate but only an 11.85% effective rate.
What is the 2026 standard deduction?
For 2026, the standard deduction is $16,100 for single filers, $32,200 for married filing jointly, $23,850 for head of household, and $16,100 for married filing separately. Taxpayers who are 65 or older or blind receive additional amounts. Under OBBBA, seniors also get a new $4,000 senior bonus deduction on top of the standard deduction.
How did 2026 tax brackets change from 2025?
The seven tax rates (10% through 37%) remained the same, but all income thresholds were adjusted upward for inflation. The standard deduction increased by about $400 for single filers. Major OBBBA changes include: the SALT cap rising from $10,000 to $40,000, federal income tax exemptions on overtime pay and tips, and a new $4,000 senior bonus deduction.
What are the 2026 capital gains tax rates?
Long-term capital gains are taxed at preferential rates of 0%, 15%, or 20% depending on your taxable income and filing status. For single filers: 0% up to $48,350, 15% from $48,351 to $533,400, and 20% above $533,400. Short-term gains (assets held one year or less) are taxed as ordinary income. The 3.8% Net Investment Income Tax may also apply to high earners.
Do I pay the top tax rate on all my income?
No. The US uses a progressive (graduated) system where you pay each rate only on the income within that bracket. For example, even if your marginal rate is 37%, only the income above $626,350 (single) is taxed at 37%. All income below that threshold is taxed at the lower rates for each respective bracket. This means earning more money never causes you to take home less overall.

Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.

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