2026 Federal Tax Brackets — Complete Reference Guide
All 2026 federal income tax brackets for every filing status — single, married filing jointly, head of household, and married filing separately. Includes capital gains rates, standard deductions, SALT cap changes, AMT exemptions, NIIT, and every OBBBA update. Verified against IRS Revenue Procedure 2025-28.
2026 Federal Income Tax Brackets — All Filing Statuses
The 2026 federal income tax rates and 2026 tax bracket chart below shows all seven progressive brackets ranging from 10% to 37% — covering every income tax rate 2026 taxpayers will face. These income tax rates 2026 apply to tax year 2026 returns filed in 2027. These rates were made permanent by the One Big Beautiful Bill Act (OBBBA) signed in 2025 — ending the uncertainty about whether the TCJA rates would expire. All thresholds were adjusted upward approximately 2.7% from 2025 for inflation using the Chained Consumer Price Index (C-CPI-U).
| Tax rate | Taxable income — Single | Tax owed on this bracket |
|---|---|---|
| 10% | $0 – $11,925 | Up to $1,192.50 |
| 12% | $11,926 – $48,475 | Up to $4,386.00 |
| 22% | $48,476 – $103,350 | Up to $12,075.78 |
| 24% | $103,351 – $197,300 | Up to $22,551.60 |
| 32% | $197,301 – $250,525 | Up to $17,031.36 |
| 35% | $250,526 – $626,350 | Up to $131,572.40 |
| 37% | Above $626,350 | 37% on every dollar above |
| Tax rate | Taxable income — MFJ | Tax owed on this bracket |
|---|---|---|
| 10% | $0 – $23,850 | Up to $2,385.00 |
| 12% | $23,851 – $96,950 | Up to $8,772.00 |
| 22% | $96,951 – $206,700 | Up to $24,145.78 |
| 24% | $206,701 – $394,600 | Up to $45,096.00 |
| 32% | $394,601 – $501,050 | Up to $34,063.36 |
| 35% | $501,051 – $751,600 | Up to $87,692.50 |
| 37% | Above $751,600 | 37% on every dollar above |
| Tax rate | Taxable income — Head of Household | Vs single (advantage) |
|---|---|---|
| 10% | $0 – $17,000 | $5,075 more at 10% than single |
| 12% | $17,001 – $64,850 | $16,375 more at 12% than single |
| 22% | $64,851 – $103,350 | Same upper threshold as single |
| 24% | $103,351 – $197,300 | Identical to single above 22% |
| 32% | $197,301 – $250,500 | Identical to single |
| 35% | $250,501 – $626,350 | Identical to single |
| 37% | Above $626,350 | Identical to single |
IRS tax brackets 2026 source: IRS Revenue Procedure 2025-28. Brackets made permanent by the One Big Beautiful Bill Act (OBBBA). Rates apply to taxable income — gross income minus standard or itemized deduction and pre-tax deductions. Withholding from your paycheck is based on these brackets and your W-4 elections. Your take home pay is your gross salary minus these taxes — see the take-home pay calculator for your exact net. To calculate federal tax only, use the federal income tax calculator.
How Tax Brackets Work — Marginal vs Effective Rate
The most important concept in understanding the marginal tax rate, effective tax rate, and how the progressive tax system works: you are never taxed at your highest bracket rate on your entire income. The US progressive tax system — with its marginal tax rates — taxes only the income within each bracket at that bracket's rate. Moving into a higher bracket only increases the tax on the additional income above the threshold — not on all income you earned.
Single filer — $85,000 gross salary, 2026 tax calculation
Standard Deduction 2026 — All Filing Statuses
The standard deduction reduces gross income to taxable income before any brackets are applied. The 2026 standard deductions are at record highs — up approximately $800–$1,700 from 2025 — meaning fewer taxpayers will find itemizing beneficial.
| Filing status | Standard deduction | Age 65+ additional | Total (65+) | OBBBA senior bonus |
|---|---|---|---|---|
| Single | $16,100 | $2,050 | $18,150 | Up to $6,000 (phases out above $75,000) |
| Married Filing Jointly | $32,200 | $1,650 per spouse | $33,850–$35,500 | Up to $6,000 per qualifying spouse |
| Head of Household | $24,150 | $2,050 | $26,200 | Up to $6,000 (phases out above $75,000) |
| Married Filing Separately | $16,100 | $1,650 | $17,750 | Up to $3,000 |
Capital Gains Tax 2026 — Capital Gains Rates and Brackets
Long-term capital gains — from assets held more than one year — are taxed at preferential rates of 0%, 15%, or 20% depending on taxable income. Capital gains stack on top of ordinary income when determining which rate applies. Short-term capital gains (assets held one year or less) are taxed as ordinary income at your marginal bracket rate.
| Rate | Single — Taxable income | MFJ — Taxable income | Head of Household |
|---|---|---|---|
| 0% | $0 – $49,450 | $0 – $98,900 | $0 – $66,200 |
| 15% | $49,451 – $518,900 | $98,901 – $583,750 | $66,201 – $551,350 |
| 20% | Above $518,900 | Above $583,750 | Above $551,350 |
Capital gains stacking example — $50,000 wages + $20,000 long-term gain, single filer
This stacking rule means a taxpayer with low ordinary income can shelter a significant amount of capital gains at the 0% rate — a major planning opportunity for early retirees, part-time workers, or those in gap years between jobs. High earners who pay the 20% capital gains rate also face the 3.8% Net Investment Income Tax (NIIT), bringing the effective top rate on long-term capital gains to 23.8%.
OBBBA Tax Changes 2026 — Key Updates for Taxpayers
The One Big Beautiful Bill Act (OBBBA), signed in 2025, made sweeping permanent and temporary changes to individual tax law. These are the provisions most likely to affect average workers and families in 2026.
| Change | 2025 | 2026 | Who benefits | Duration |
|---|---|---|---|---|
| SALT deduction cap 2026 | $10,000 | $40,400 | High-tax state homeowners who itemize | Through 2029, reverts 2030 |
| Senior bonus deduction (65+) | $0 | Up to $6,000 | Seniors below $75K single / $150K MFJ | Temporary 2026 |
| Child Tax Credit | $2,000 per child | $2,200 per child | Families with qualifying children under 17 | Permanent |
| 7 bracket rates | 10–37% (TCJA) | 10–37% (permanent) | All taxpayers — certainty in planning | Permanent |
| Overtime pay deduction | None | Premium deductible | W-2 workers receiving FLSA overtime | Permanent |
| Standard deduction | $15,000 / $30,000 | $16,100 / $32,200 | All standard deduction filers | Indexed annually |
Alternative Minimum Tax 2026 — AMT Exemption 2026
The Alternative Minimum Tax (AMT) requires certain high-income taxpayers to calculate their tax liability twice — once under the regular system and once under AMT rules — and pay whichever is higher. The AMT limits specific deductions and adds back "preference items" that are excluded from regular taxable income.
| Filing status | AMT exemption | Phaseout begins | Exemption fully phased out | AMT rates |
|---|---|---|---|---|
| Single / Head of Household | $90,100 | $500,000 | ~$680,200 | 26% up to $244,500 AMTI; 28% above |
| Married Filing Jointly | $140,200 | $1,000,000 | ~$1,280,400 | 26% up to $244,500 AMTI; 28% above |
| Married Filing Separately | $70,100 | $500,000 | ~$640,200 | 26% up to $122,250 AMTI; 28% above |
Most middle-income taxpayers are not subject to AMT. It primarily affects high earners who exercise incentive stock options (ISOs), have large miscellaneous deductions, or receive significant tax-exempt private activity bond income. If you may be subject to AMT, use tax preparation software or a CPA — the calculation is complex and the consequences of errors are significant.
Net Investment Income Tax 2026 (NIIT) — 3.8% Surtax
The Net Investment Income Tax (NIIT) is a 3.8% surtax on net investment income for high-income taxpayers. Investment income subject to NIIT includes interest, dividends, capital gains, rental income, and royalties. The NIIT thresholds have never been indexed for inflation since their creation in 2013 — meaning more taxpayers fall above the thresholds each year as incomes rise.
| Filing status | NIIT threshold (MAGI) | NIIT rate | Applies to |
|---|---|---|---|
| Single / Head of Household | $200,000 | 3.8% | Lesser of: net investment income OR MAGI above threshold |
| Married Filing Jointly | $250,000 | 3.8% | Same as above |
| Married Filing Separately | $125,000 | 3.8% | Same as above |
For investors in the top capital gains bracket: the 20% capital gains rate + 3.8% NIIT = 23.8% effective top rate on long-term capital gains. For high-income taxpayers with significant dividend income, the same 23.8% applies to qualified dividends. Ordinary interest income and short-term gains face the marginal bracket rate plus NIIT.
Other Key 2026 Tax Numbers
| Item | 2026 amount | 2025 amount | Notes |
|---|---|---|---|
| 401k contribution limit | $23,500 | $23,500 | Catch-up (50+): $31,000 total |
| IRA contribution limit | $7,500 | $7,000 | Roth and traditional combined |
| IRA catch-up (50+) | $1,100 extra | $1,000 | Age 50+ additional contribution |
| HSA limit (single) | $4,300 | $4,150 | High Deductible Health Plan required |
| HSA limit (family) | $8,550 | $8,300 | HDHP family coverage |
| Child Tax Credit | $2,200 per child | $2,000 | OBBBA increase; $1,700 refundable (ACTC) |
| Child Tax Credit phaseout | $400,000 MFJ / $200,000 other | $400,000 / $200,000 | $50 reduction per $1,000 above threshold |
| Estate tax exemption | $15M individual / $30M MFJ | $13.99M / $27.98M | OBBBA increased permanently |
| Annual gift tax exclusion | $19,000 per recipient | $19,000 | No filing required below this amount |
| SALT deduction cap 2026 | $40,400 | $10,000 | OBBBA increase; reverts to $10,000 in 2030 |
2026 vs 2025 Tax Brackets — What Changed
The 2026 bracket thresholds rose approximately 2.7% from 2025, reflecting inflation adjustment using the Chained Consumer Price Index (C-CPI-U). The C-CPI-U typically rises more slowly than the traditional CPI — a feature of the Tax Cuts and Jobs Act that means bracket creep occurs slightly faster over time than under the old adjustment method.
| Rate | 2025 threshold (single) | 2026 threshold (single) | Change |
|---|---|---|---|
| 10% | $0 – $11,600 | $0 – $11,925 | +$325 |
| 12% | $11,601 – $47,150 | $11,926 – $48,475 | +$1,325 |
| 22% | $47,151 – $100,525 | $48,476 – $103,350 | +$2,825 |
| 24% | $100,526 – $191,950 | $103,351 – $197,300 | +$5,350 |
| 32% | $191,951 – $243,725 | $197,301 – $250,525 | +$6,800 |
| 35% | $243,726 – $609,350 | $250,526 – $626,350 | +$17,000 |
| 37% | Above $609,350 | Above $626,350 | +$17,000 |
The standard deduction increased from $15,000 to $16,100 (single) and from $30,000 to $32,200 (MFJ). The largest structural changes were the SALT cap increase ($10,000 → $40,400) and the new senior bonus deduction — both from the OBBBA. The OBBBA also made permanent the seven-bracket structure that was previously set to expire at end of 2025.
2026 Federal Tax Brackets — FAQ
What are the tax brackets for 2026 — the 2026 federal income tax brackets?
The 2026 federal income tax brackets for single filers per IRS Rev. Proc. 2025-28: 10% on $0–$11,925; 12% on $11,926–$48,475; 22% on $48,476–$103,350; 24% on $103,351–$197,300; 32% on $197,301–$250,525; 35% on $250,526–$626,350; 37% above $626,350. Married filing jointly thresholds are double these amounts. These seven rates were made permanent by the OBBBA. Use the federal income tax calculator for your exact tax.
What is the standard deduction for 2026?
Per IRS Rev. Proc. 2025-28: $16,100 for single filers; $32,200 for married filing jointly; $24,150 for head of household; $16,100 for married filing separately. Age 65+ taxpayers claim an additional $2,050 (single/HoH) or $1,650 per qualifying spouse (MFJ). The new OBBBA senior bonus deduction adds up to $6,000 more for taxpayers 65+ under the income phase-out thresholds ($75,000 single / $150,000 MFJ).
What are the 2026 capital gains tax rates?
Long-term capital gains 2026 rates: 0% on taxable income up to $49,450 (single) or $98,900 (MFJ); 15% from $49,451–$518,900 (single) or $98,901–$583,750 (MFJ); 20% above $518,900 (single) or $583,750 (MFJ). Capital gains stack on top of ordinary income. High earners also pay 3.8% NIIT, bringing the effective top rate on long-term capital gains to 23.8%. Short-term gains are taxed at ordinary marginal rates.
How do tax brackets work — is all my income taxed at my highest rate?
No. Only the income within each bracket is taxed at that bracket's rate — not all income. A single filer earning $85,000 taxable pays 10% on the first $11,925, 12% on $11,926–$48,475, and 22% on $48,476–$85,000. Total federal tax is approximately $10,072 — an effective rate of 11.8%, not 22%. Your marginal rate (22%) applies only to your last dollars of income. This is why moving into a higher bracket never reduces take-home pay.
What is the SALT deduction cap in 2026?
The SALT deduction cap in 2026 is $40,400 per return — raised from $10,000 under the OBBBA. This benefits taxpayers in high-tax states (California, New York, New Jersey, Illinois) who itemize deductions and have significant property tax and state income tax. The cap phases out above approximately $505,000 MAGI. It is scheduled to revert to $10,000 in 2030 without further legislation.
What changed in 2026 from 2025?
Key changes from 2025 to 2026: Bracket thresholds increased ~2.7% for inflation. Standard deduction rose from $15,000 to $16,100 (single) and $30,000 to $32,200 (MFJ). SALT cap increased from $10,000 to $40,400 (OBBBA). New senior bonus deduction up to $6,000 for qualifying taxpayers 65+. Child Tax Credit increased from $2,000 to $2,200 per child. Estate tax exemption rose to $15M individual. IRA limit increased to $7,500. All seven bracket rates made permanent by OBBBA.
What is the AMT exemption for 2026?
The 2026 AMT exemption is $90,100 for single filers and $140,200 for married filing jointly. The exemption phases out at $500,000 (single) and $1,000,000 (MFJ). AMT rates are 26% on AMTI up to $244,500 and 28% above. The OBBBA made the higher TCJA-era AMT exemptions permanent, meaning most middle-income taxpayers remain unaffected by AMT. It primarily affects high earners with incentive stock options or other preference items.
What is the Net Investment Income Tax (NIIT) for 2026?
The NIIT is a 3.8% surtax on net investment income for taxpayers with MAGI above $200,000 (single) or $250,000 (MFJ). These thresholds have never been indexed for inflation since creation in 2013 — their real value shrinks each year, affecting more taxpayers over time. For high earners: 20% capital gains rate + 3.8% NIIT = 23.8% effective top capital gains rate. The NIIT applies to interest, dividends, capital gains, rent, and royalties.