2026 Federal Income Tax Rates

Joshua Paul Friedlander |
Categories
Tax

How Federal Tax Brackets Work (Quick Refresher)

The U.S. uses a progressive tax system, meaning your income is taxed in layers. Only the portion of your income that falls into each bracket is taxed at that rate — not your entire income.

That distinction matters, especially when you’re close to crossing into a higher bracket and have flexibility around timing income, deductions, or contributions.

2026 Federal Income Tax Rates

For 2026, there are still seven federal income tax rates:

10%, 12%, 22%, 24%, 32%, 35%, and 37%

What changes year to year are the income thresholds for each bracket, which the IRS adjusts for inflation.

2026 Tax Brackets by Filing Status

Below are the 2026 taxable income ranges to be aware of as you plan for the year ahead:

Single Filers

  • 10%: $0 – $12,400
  • 12%: $12,401 – $50,400
  • 22%: $50,401 – $105,700
  • 24%: $105,701 – $201,775
  • 32%: $201,776 – $256,225
  • 35%: $256,226 – $640,600
  • 37%: Over $640,600

Married Filing Jointly

  • 10%: $0 – $24,800
  • 12%: $24,801 – $100,800
  • 22%: $100,801 – $211,400
  • 24%: $211,401 – $403,550
  • 32%: $403,551 – $512,450
  • 35%: $512,451 – $768,700
  • 37%: Over $768,700

Head of Household

  • 10%: $0 – $17,700
  • 12%: $17,701 – $67,450
  • 22%: $67,451 – $105,700
  • 24%: $105,701 – $201,750
  • 32%: $201,751 – $256,200
  • 35%: $256,201 – $640,600
  • 37%: Over $640,600

(Married filing separately generally follows the single filer brackets.)

Standard Deduction Updates for 2026

The IRS has also increased the standard deduction, which reduces the amount of income subject to tax:

  • $16,100 — Single & Married Filing Separately
  • $32,200 — Married Filing Jointly
  • $24,150 — Head of Household

These increases are designed to help offset inflation and reduce the risk of “bracket creep,” where higher income driven by inflation alone results in higher taxes.

Why This Matters Before 2026 Begins

Knowing the upcoming brackets ahead of time can help you make more informed decisions, such as:

  • Whether to accelerate or delay income
  • How much to contribute to retirement accounts
  • When to realize capital gains
  • How to think about bonuses, equity compensation, or business income
  • Opportunities for tax-efficient investment and withdrawal strategies

Even small adjustments — when done intentionally — can make a meaningful difference over time.

Planning Beats Reacting

Tax brackets are only one piece of the puzzle, but they provide an important framework for proactive planning. The earlier you understand where you’re likely to land, the more flexibility you often have to manage taxes efficiently.

If you’d like help understanding how the 2026 tax brackets may impact your situation — or how to plan ahead with tax efficiency in mind — we’re happy to help you think it through.