2026 Federal Income Tax Brackets [Rates, Standard Deduction & Key Figures]

By Nick

Published in Finance

March 23, 2026

4 min read

Key Takeaways

The 2026 standard deduction is $15,750 (single) and $31,500 (married filing jointly) — OBBBA made these permanent
There are 7 tax brackets from 10% to 37% — same rates as 2025, thresholds adjusted for 2.7% inflation
The top 37% rate kicks in at $626,350 for single filers and $751,600 for married couples
OBBBA permanently extended all TCJA individual provisions that were set to expire December 31, 2025
A new senior deduction of up to $6,000 applies to taxpayers age 65+ (phases out above $75,000 single / $150,000 joint) — separate from and in addition to the additional standard deduction

2026 Federal Tax Brackets

Single Filers and Married Filing Separately

Tax Rate	Taxable Income
10%	$0 – $12,400
12%	$12,401 – $47,150
22%	$47,151 – $100,525
24%	$100,526 – $191,950
32%	$191,951 – $243,725
35%	$243,726 – $626,350
37%	Over $626,350

Married Filing Jointly and Qualifying Surviving Spouse

Tax Rate	Taxable Income
10%	$0 – $24,800
12%	$24,801 – $94,300
22%	$94,301 – $201,050
24%	$201,051 – $383,900
32%	$383,901 – $487,450
35%	$487,451 – $751,600
37%	Over $751,600

Head of Household

Tax Rate	Taxable Income
10%	$0 – $17,850
12%	$17,851 – $63,650
22%	$63,651 – $100,525
24%	$100,526 – $191,950
32%	$191,951 – $243,725
35%	$243,726 – $626,350
37%	Over $626,350

Source: IRS Revenue Procedure 2025-32; Tax Foundation 2026 Tax Brackets analysis.

2026 Standard Deduction

Filing Status	2026 Amount	Change from 2025
Single	$15,750	+$400
Married Filing Jointly	$31,500	+$800
Head of Household	$23,625	+$600
Married Filing Separately	$15,750	+$400

On top of the base standard deduction, older adults and blind taxpayers get an additional amount:

Filing Status	Per Person Additional
Single or Head of Household (65+ or blind)	+$2,050
Married (65+ or blind)	+$1,650 per qualifying person

A married couple both over 65: $31,500 + $1,650 + $1,650 = $34,800 total standard deduction.

The New OBBBA Senior Deduction

The One Big Beautiful Bill created an additional senior deduction of up to $6,000 per taxpayer age 65 and older. This is separate from and in addition to the additional standard deduction:

Who qualifies: Taxpayers age 65 or older
Amount: Up to $6,000 per qualifying taxpayer
Phase-out: 6% reduction for each $1,000 of AGI above $75,000 (single) / $150,000 (joint)
Applies to: Tax years 2025–2028

The senior deduction reduces the income used to calculate whether Social Security benefits are taxable. A couple both 65+, both qualifying, can claim up to $12,000 in additional deductions.

Note: The Tax Foundation reports this as $6,000 per qualifying taxpayer, phasing out at the income thresholds noted above.

Key 2026 Tax Figures

Item	2026 Amount
Standard deduction (single)	$15,750
Standard deduction (MFJ)	$31,500
AMT exemption (single)	$90,100
AMT exemption (MFJ)	$140,200
AMT phase-out (single)	$500,000
AMT phase-out (MFJ)	$1,000,000
Estate tax basic exclusion	$15,000,000
Annual gift tax exclusion	$19,000
401(k) employee contribution limit	$23,500
IRA contribution limit	$7,000 ($8,000 if 50+)
HSA individual limit	$4,400
HSA family limit	$8,750
EITC maximum (3+ children)	$8,231
Child Tax Credit maximum	$2,200 per child
Qualified Transportation Fringe	$340/month
Health FSA limit	$3,400

How Tax Brackets Work: The Most Common Misconception

Being “in the 22% bracket” does NOT mean you pay 22% on all of your income. You pay each rate only on the income within that bracket.

Example: Single Filer Earning $80,000

Income Layer	Rate	Tax
First $12,400	10%	$1,240
$12,401–$47,150	12%	$4,170
$47,151–$80,000	22%	$7,227
Total Federal Tax		$12,637

Effective tax rate: $12,637 / $80,000 = 15.8% — not 22%

The 22% is the marginal rate — what you pay on the last dollar earned. Your effective rate is always lower.

TCJA Made Permanent: What It Means

The Tax Cuts and Jobs Act of 2017 was scheduled to expire December 31, 2025. The OBBBA (signed July 4, 2025) permanently extended:

Current tax rates and brackets (no reversion to higher pre-2018 rates)
The doubled standard deduction
The $10,000 SALT cap (with modifications — highest earners face limited deduction benefit)
Elimination of personal exemptions (stays at $0)
20% pass-through deduction (Section 199A) — now permanent
$2,200 Child Tax Credit (up from $2,000)
AMT exemption increases

Without the OBBBA, single filers would have reverted to a $8,300 standard deduction and higher marginal rates. The permanence provides long-term tax planning certainty.

Long-Term Capital Gains Rates (2026)

Long-term capital gains are taxed at preferential rates — not ordinary income rates:

Filing Status	0% Rate	15% Rate	20% Rate
Single	Up to $48,350	$48,351–$533,400	Over $533,400
Married Filing Jointly	Up to $96,700	$96,701–$600,050	Over $600,050
Head of Household	Up to $64,750	$64,751–$566,700	Over $566,700

The 3.8% Net Investment Income Tax (NIIT) applies to investment income above $200,000 (single) / $250,000 (MFJ).

What is the difference between my marginal rate and effective rate? Your marginal rate is the rate on your highest dollar of income — your tax bracket. Your effective rate is your total tax divided by total income — always lower than your marginal rate because lower income layers are taxed at lower rates.

Does the standard deduction or itemizing save more? For about 89% of taxpayers, the standard deduction saves more. Itemizing only wins if your deductible expenses (mortgage interest, SALT up to $10,000, charitable giving, medical expenses above 7.5% AGI) exceed your standard deduction. See Standard Deduction vs. Itemized 2026.

Do I need to file a tax return? Generally yes if your income exceeds the standard deduction ($15,750 single, $31,500 MFJ). Even if below, file if you had taxes withheld and want a refund, or if you’re eligible for refundable credits (EITC, ACTC).

Sources

IRS. Revenue Procedure 2025-32. Annual inflation adjustments for tax year 2026.
IRS. IRS Releases Tax Inflation Adjustments for Tax Year 2026. IR-2025-103, October 9, 2025.
Tax Foundation. 2026 Tax Brackets and Federal Income Tax Rates. March 2026.
CNBC. IRS 2026 tax updates may change family refunds, credits. October 10, 2025.

Related Articles:

Source: IRS Rev. Proc. 2025-32; Tax Foundation. Last verified: March 2026.

Tax Planning Beyond the Basics

Understanding your tax situation is one of the highest-value financial activities you can engage in:

Contribute to tax-advantaged accounts. Every dollar in a traditional 401(k) or IRA reduces your current-year taxable income. Every dollar in a Roth IRA reduces your future tax bill. Both are powerful.

Know your effective vs. marginal rate. Your marginal rate (the highest bracket you’re in) isn’t what you pay on all income. Your effective rate (total taxes ÷ total income) is much lower. This distinction matters for decision-making.

Tax-loss harvest in taxable accounts. Deliberately realize losses to offset gains and up to $3,000/year of ordinary income. Many robo-advisors do this automatically.

Time income and deductions strategically. If you’re near a bracket boundary, accelerating deductions into the current year or deferring income to the next can reduce taxes meaningfully.

Sources

IRS. Tax Withholding Estimator. IRS.gov.
IRS Revenue Procedure 2025-32. 2026 inflation adjustments for tax provisions.
Tax Policy Center. 2026 Tax Parameters. TPC.org.

Last verified: March 2026.

Key Takeaways Revisited

Building financial security is a multi-step process. The strategies and information in this guide work best as part of a coordinated approach:

Foundation first: Emergency fund (3–6 months) in a high-yield savings account before investing
Tax-advantaged accounts: Roth IRA ($7,000/year) and 401(k) matching before any taxable investing
Low costs: Every 1% in fees costs you roughly 25% of your final portfolio over 30 years — keep total costs under 0.10%
Consistency: Regular contributions on autopilot beat occasional large contributions driven by market optimism
Long time horizon: The single most important factor in wealth building is time in the market, not timing the market

Whether you’re just starting out or optimizing an existing financial life, the principles that work are simple, well-established, and available to anyone willing to implement them consistently.

The next step: Pick one action from this guide and do it today. Open that account. Set that automatic transfer. Make that call. Progress beats perfection every time.