2026 U.S. federal income tax brackets  you should know

What is a tax bracket? When people talk about “tax brackets,” they mean the ranges of taxable income to which different tax rates apply. The U.S. federal income tax is progressive — that means as your taxable income goes up, the rate you pay on the next dollar may go up too. But importantly, you don’t pay the highest rate on all your income — only the portion that falls into that bracket. Think of it like steps: you climb up steps, and on each step the rate is a bit higher. You pay lower rates on the first slice of your income, then higher rates on slices above certain thresholds. Tax brackets are adjusted periodically, often each year, to account for inflation or because of new tax laws. For the tax year 2026 (i.e. for income earned in 2026 and tax returns you will file in 2027), the IRS has released updated brackets and related rules.  Also, a recent law known as the One Big Beautiful Bill (OBBBA) makes many changes to the tax regime starting in 2026 (and also some effect in 2025) to preserve or adjust provisions that otherwise would have expired.  In this article, I’ll: Lay out the 2026 tax brackets and thresholds for key filing types Explain how taxable income is computed Walk through example calculations Note important changes under the new law and what to keep in mind   Key Terms You Should Know Before diving into numbers, here are some terms you’ll often encounter: Taxable income: The amount of income on which you pay federal income tax. It’s your gross income minus deductions, exemptions, and certain adjustments. Marginal tax rate: The rate you pay on the next dollar of income in a given bracket. It’s not the same as your average tax rate. Effective (or average) tax rate: The total tax you pay divided by your taxable income — often lower than your highest marginal rate. Bracket creep: When inflation pushes people into higher tax brackets even though their real income didn’t go up. To prevent that, the IRS typically adjusts brackets upward each year. Standard deduction: A fixed amount you can subtract from your income if you do not itemize deductions. Filing status: Your tax “category” (e.g. Single, Married Filing Jointly, Head of Household) — it determines which brackets apply to you. Phase-outs, extra deductions, credits: Many special rules modify how much of deductions or credits you get depending on income levels, age, etc.   The 2026 Federal Income Tax Brackets (Ordinary Income) Here are the tax rates and the income ranges (for tax year 2026) that apply to ordinary income (like wages, salaries, interest, etc.). These are the “normal” brackets for most people.  For Single Filers Rate Taxable Income Range 10% $0 up to $12,400 

12% Over $12,400 up to $50,400 

22% Over $50,400 up to $105,700 

24% Over $105,700 up to $201,775 

32% Over $201,775 up to $256,225 

35% Over $256,225 up to $626,350 

37% Over $626,350  

For Married Filing Jointly

Because married couples often file together, the threshold ranges are (roughly) about double.  Rate Taxable Income Range 10% $0 to $24,800 

12% Over $24,800 up to $100,800 

22% Over $100,800 up to $211,400 

24% Over $211,400 up to $403,550 

32% Over $403,550 up to $512,450 

35% Over $512,450 up to $1,252,700 (some sources use $1,252,700) 

37% Over $751,600 (some sources) but many show $626,350 × 2 = $1,252,700 as threshold 

 

Other Filing Statuses

There are also brackets for Head of Household and Married Filing Separately. The ranges differ. For example, under one source, Head of Household shares the same breakpoints for lower brackets as in 2025 (e.g. 10% up to $17,000) , but the IRS’s official 2026 announcement lists only the general brackets and leaves the detailed scheme to IRS tables.  Because the IRS website uses the general schedule and detailed tables will be published (later in the year), the specifics for some categories might not yet be fully detailed in the public summary.   

How It Works (Example) Let’s walk through a simple example to show how “brackets” apply in practice: Suppose Anna, filing as a single taxpayer, has taxable income (after deductions) of $150,000 in 2026. Based on the brackets above: 1. The first $12,400 is taxed at 10% 

2. The income between $12,400 and $50,400 is taxed at 12% 

3. The income between $50,400 and $105,700 is taxed at 22% 

4. The income between $105,700 and $150,000 is taxed at 24%  Let’s break it step by step: On the first $12,400 → 10% → $1,240 On the next slice:  → taxed at 12% → $4,560 On the next slice:  → taxed at 22% → $12,166 On the remaining slice:  → taxed at 24% → $10,632 

Then we add them:

$1,240 + $4,560 + $12,166 + $10,632 = $28,598 total tax on $150,000 taxable income. Anna’s marginal rate is 24% (because her last dollars are taxed at 24%).

Her average (effective) tax rate is . This shows how the bracket system prevents a “cliff” — her entire income isn’t taxed at 24%, only the portion in the highest band she reaches.  

Standard Deduction & Other Key Deductions To find taxable income, you start from your gross income (wages, interest, etc.), then subtract deductions, exemptions, etc. One important deduction is the standard deduction. For 2026, under the IRS announcement, the standard deduction amounts are: Single / Married Filing Separately: $16,100  Married Filing Jointly: $32,200  Head of Household: $24,150  

Thus, if Anna (from the example) had a gross income of $170,000, and her deductions (standard or itemized) totaled $20,000, her taxable income would be , and the bracketed-tax computation above applies. There are also additional deductions allowed for age (65+), blindness, etc.   

What Is Changing in 2026: The “One Big Beautiful Bill” and Other Shifts The year 2026 is special because many tax provisions included in the Tax Cuts and Jobs Act (TCJA) were set to expire at the end of 2025. If no action had been taken, tax rates and deductions would revert to older, often higher-tax rules (pre-2018).  However, with the passage of the One Big Beautiful Bill (OBBBA) in 2025, many of those changes are preserved or modified.  Some of the key changes and points to watch: The seven tax rates (10, 12, 22, 24, 32, 35, 37) remain in effect in 2026 under the new law, rather than reverting to older rates like 15, 25, 28, 33, etc.  The IRS also adjusts the income bracket thresholds each year for inflation to prevent bracket creep.  Certain deductions that were due to expire are being preserved.  Special new deductions were introduced: for instance, tip deduction (for certain tipped workers) and a deduction for the overtime portion of certain wages, effective 2025–2028.  The Alternative Minimum Tax (AMT) exemption amounts have been set for 2026: for unmarried individuals $90,100, which begins to phase out above $500,000; for married couples, the exemption begins to phase out at $1,000,000.  Estate tax exclusion amount (the threshold before estates owe tax) is also raised to $15,000,000 for deaths in 2026.  

Because of these modifications, the 2026 tax landscape is somewhat a hybrid: many of the favorable TCJA-era rules remain in place, but with inflation adjustments and some new features. One caution: Some analysts had expected a reversion to older tax rates for 2026, because of scheduled expirations.  But as of the official IRS announcement, the newer rates (10%, 12%, 22%, etc.) remain.  

What You Should Watch / Plan For Here are some practical points to keep in mind: 1. Don’t assume your brackets will stay the same — each fall, the IRS announces inflation-adjusted thresholds. 

2. Know your filing status — the bracket thresholds change depending on whether you file single, jointly, or as head of household. 

3. Deductions matter — reducing your taxable income (via deductions, retirement plan contributions, etc.) can push you into lower bracket ranges or reduce tax owed. 

4. Marginal vs average rate — just knowing your marginal bracket (say, 24%) doesn’t tell the whole story; your effective rate (what you actually pay) will be lower. 

5. Watch phase-outs and limitations — high incomes may reduce certain credits or deductions. 

6. Special rules — if you are 65+, blind, have investment income, or are subject to AMT, the rules can get more complex. 

7. Legislative risk — tax laws change; what’s true for 2026 may be revised in the future.   

Sample Comparison: 2025 vs 2026 

To get a sense of how 2026’s rules compare, here’s a quick contrast with the 2025 brackets (for ordinary income) as announced by the IRS.  In 2025, the brackets for single filers were: 10% on income up to $11,925 12% on income over $11,925 up to $48,475 22% over $48,475 up to $103,350 24% over $103,350 up to $197,300 32% over $197,300 up to $250,525 35% over $250,525 up to $626,350 37% over $626,350 

In 2026, by contrast, the thresholds shift upward because of inflation and law adjustments (for example, the 12% bracket upper bound moves from $48,475 to $50,400 for single filers).  So if your income remains steady, you might end up in a slightly lower “real” bracket or pay a little less tax under 2026 rules.  

A Full Walkthrough Example: Married Couple Let’s do a second example: Suppose Ben and Carla, married filing jointly, have combined taxable income of $450,000 in 2026. Using the married brackets above: 10% on the first $24,800 12% on income between $24,800 and $100,800 22% on income between $100,800 and $211,400 24% on income between $211,400 and $403,550 32% on income between $403,550 and $450,000 

Compute step by step: 1. $24,800 at 10% → $2,480 

2. $100,800 − $24,800 = $76,000 at 12% → $9,120 

3. $211,400 − $100,800 = $110,600 at 22% → $24,332 

4. $403,550 − $211,400 = $192,150 at 24% → $46,116 

5. $450,000 − $403,550 = $46,450 at 32% → $14,864  Total = $2,480 + $9,120 + $24,332 + $46,116 + $14,864 = $96,912 in federal tax on their $450,000 taxable income. Their marginal rate is 32%. Their average rate is .  

Why the Brackets Matter to You Planning income / withholding: Knowing which bracket your next dollars fall into helps you decide whether additional income (bonus, side gig) is “worth it” after tax. 

Tax-efficient decisions:

Contributing to retirement accounts, health accounts, or charitable giving can reduce taxable income and possibly avoid pushing into a higher bracket. Estimating your cash flow: Understanding your tax liability helps with budgeting and financial planning. Anticipating changes: Because tax policy can shift, staying aware of bracket changes helps avoid surprises.   Limitations & Things Not Covered Here This article focuses on ordinary (non-capital-gains) income. Capital gains (from selling investments) often have different tax rates. It doesn’t cover state or local income taxes — those are separate. It doesn’t go deep into tax credits (child tax credit, earned income credit, etc.), which reduce tax liability directly. It only gives a broad outline of AMT, phase-outs, and special rules, which can complicate things for high-income taxpayers.    Tax brackets divide taxable income into slices, each taxed at different rates. For 2026, the U.S. federal system retains the seven familiar rates: 10%, 12%, 22%, 24%, 32%, 35%, 37%.  The IRS has adjusted the income ranges upward for each bracket to reflect inflation and preserve fairness.  The standard deduction is also increased: $16,100 for singles, $32,200 for married couples filing jointly, $24,150 for heads of household.  The One Big Beautiful Bill helped prevent many tax code reversion changes that were scheduled for 2026 and introduced some new rules (tip deduction, overtime deduction, etc.).  To find your tax: subtract deductions from gross income to get taxable income, then apply the brackets piece by piece. Know your filing status, know your deduction choices, and keep up to date on IRS announcements because thresholds adjust annually.