The amount you pay in federal income tax depends on how your taxable income is divided across the various tax brackets.
And because the IRS adjusts the income thresholds for tax brackets for inflation each year, staying up to date on the current tax brackets is critical to avoiding mistakes and tax issues.
Read on to learn more about the 2026 tax bracket changes as announced by the IRS.
Why Tax Brackets Matter
What Is a Tax Bracket?
Tax brackets are classifications of tax rates that taxpayers must pay based on their income levels. These rates are organized into brackets, or layers, making it easy for taxpayers to find their income tax bracket.
How Brackets Affect You
The U.S. uses a progressive tax system, meaning that as your income rises, your tax rate increases.
However, only income falling within each bracket is taxed at that bracket’s rate. This implies you won’t have to pay the highest tax rate on all your income, and only a portion of it is subject to that rate.
2026 Federal Income Tax Brackets
Single Filers
| Tax Rate | Income Range (Single) |
| 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% | Above $640,600 |
Married Filing Jointly
| Tax Rate | Income Range (MFJ) |
| 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% | Above $768,700 |
Heads of Household
| Tax Rate | Income Range (HOH) |
| 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% | Above $640,600 |
Standard Deduction Amounts for 2026
Updated Deduction Thresholds
| Filing Status | 2026 Standard Deduction |
| Single | $16,100 (est.) |
| Married Filing Jointly | $32,200 (est.) |
| Head of Household | $24,150 (est.) |
Key Factors That Influence Your Tax Bracket
Income Type
When determining how much you need to pay in taxes, the first factor to consider is your income type.
Ordinary income, such as salaries, bonuses, and short-term capital gains, is taxed at the regular tax brackets (10%-37%).
Other income streams, such as long-term capital gains and qualifying dividends, have their own tax bands (0% to 20%), whereas Roth IRA/401(k) distributions are tax-free.
Filing Status
The next factor that can affect your tax is your filing status. The exact dollar amount can put you in a completely different marginal tax bracket depending on how you file.
For example, a single filer at $60,000 taxable income puts you in the 22% bracket, whereas married filers are in the 12% bracket. If you get married or have a child, your tax bracket can change even though your paycheck stays the same.
Deductions & Credits
Your bracket is based on your taxable income, not salary or total earnings. Deductions and credits are two crucial factors that can lower your taxable income.
Standard deductions, itemized deductions, and tax credits, like the Child Tax Credit, are all tax advantages that can effectively retain more money in lower brackets.
How to Estimate Your 2026 Tax Liability
Calculating your tax liability can be done in several simple steps, using the 2026 tax brackets as the primary tool and reference.
Start by adding up everything you expect to earn during the year—your salary, bonuses, interest, dividends, side-gig money, rental income, etc.
Next, subtract the “above-the-line” adjustments you’re entitled to, such as contributions to a traditional 401(k) or IRA, student-loan interest you pay, or money you put into a health savings account; what’s left after those subtractions is your adjusted gross income, or AGI.
From your AGI, take one more big deduction. Most people simply use the standard deduction, but if you have a lot of mortgage interest, charitable donations, or medical expenses, you can itemize and subtract even more.
Whatever number remains after this deduction is your taxable income.
Now, go back to the 2026 tax brackets and find your filing status and apply the rates only to the portion of taxable income that falls in each bracket.
Add up the tax on each “slice” of income. This is your gross federal income tax liability before credits. Subtract any tax credits, and you have two results:
Marginal tax rate: The rate you pay on your next dollar of income (your top bracket).
Effective tax rate: the total tax you actually pay divided by your gross income. The effective rate is almost always much lower than the marginal rate.
Example: You are a single filer, making $90,000. Assume you take the standard deduction and have no other adjustments or credits.
Gross income: $90,000
Standard deduction: −$16,100
Taxable income: $73,900
Now apply the brackets layer by layer:
| Bracket | Income in the bracket | Rate | Tax on the portion |
| 10% | First $12,400 | 10% | $1,240 |
| 12% | Next $38,000 | 12% | $4,560 |
| 22% | Remaining $23,500 | 22% | $5,170 |
| Total Federal Tax | $10,970 |
Marginal rate: 22% (your next dollar earned would be taxed at 22%)
Effective rate: $10,970 ÷ $90,000 ≈ 12.2% (what you actually pay overall on gross income)
If you’re unsure of where you stand or how to calculate your tax liability effectively, contact our team today.
FAQs: 2026 Federal Tax Brackets
What are the highest tax brackets for 2026?
The highest federal tax bracket is 37%, applying to income above $609,351 (single filers) or $731,201 (joint filers).
Are tax brackets changing in 2026?
The structure remains the same (seven brackets), but the income ranges are adjusted for inflation.
What’s the difference between marginal and effective tax rate?
Your marginal rate is the highest tax bracket you fall into. Your effective rate is the average rate you pay across all income levels.
