2026 Tax Brackets and Rates: How Much Will You Owe?

2026 Federal Tax Brackets

The U.S. federal income tax system is progressive — you don’t pay one flat rate on all income. Instead, each portion of your income is taxed at the rate for its bracket. Only income within a bracket is taxed at that rate.

Note on 2026 brackets: The 2026 tax year is subject to uncertainty from the TCJA (Tax Cuts and Jobs Act) expiration scenario. The brackets below reflect the TCJA framework with standard 2026 inflation adjustments, which applies if Congress extends or makes permanent the TCJA provisions. If TCJA expires without action, brackets would revert to pre-2018 rates (higher). Consult the tax calculator for scenario modeling.

2026 Federal Income Tax Brackets — Single Filers

Taxable Income	Rate
$0 - $11,925	10%
$11,926 - $48,475	12%
$48,476 - $103,350	22%
$103,351 - $197,300	24%
$197,301 - $250,525	32%
$250,526 - $626,350	35%
Over $626,350	37%

2026 Federal Income Tax Brackets — Married Filing Jointly

Taxable Income	Rate
$0 - $23,850	10%
$23,851 - $96,950	12%
$96,951 - $206,700	22%
$206,701 - $394,600	24%
$394,601 - $501,050	32%
$501,051 - $751,600	35%
Over $751,600	37%

2026 Federal Income Tax Brackets — Head of Household

Taxable Income	Rate
$0 - $17,000	10%
$17,001 - $64,850	12%
$64,851 - $103,350	22%
$103,351 - $197,300	24%
$197,301 - $250,500	32%
$250,501 - $626,350	35%
Over $626,350	37%

Standard Deduction Amounts for 2026

The standard deduction reduces taxable income before brackets are applied. About 87% of taxpayers take the standard deduction rather than itemizing.

Filing Status	2026 Standard Deduction
Single	$15,000
Married filing jointly	$30,000
Head of household	$22,500
Married filing separately	$15,000

Additional standard deduction for age 65+ or blind: $1,600 per qualifying individual (single), $1,300 (married).

Marginal Rate vs. Effective Rate: The Critical Distinction

The bracket you’re in does not mean you pay that rate on all income. The U.S. progressive system taxes each dollar at the rate for its tier.

Example: Single filer, $85,000 gross income

1. Subtract standard deduction: $85,000 - $15,000 = $70,000 taxable income
2. Apply brackets:
   • 10% on first $11,925 = $1,192.50
   • 12% on $11,926-$48,475 = $4,386.48 (on $36,549)
   • 22% on $48,476-$70,000 = $4,735.28 (on $21,524)
3. Total federal tax: $10,314
4. Marginal rate (top bracket): 22%
5. Effective rate: $10,314 / $85,000 = 12.1%

The person “in the 22% bracket” pays 12.1% of their gross income in federal taxes. The marginal rate matters for decisions at the margin (should I take one more dollar of income? Should I make a pre-tax contribution?). The effective rate tells you the actual total burden.

Example: Married filing jointly, $160,000 household income

1. Subtract standard deduction: $160,000 - $30,000 = $130,000 taxable income
2. Apply brackets:
   • 10% on $23,850 = $2,385
   • 12% on $23,851-$96,950 = $8,772 (on $73,099)
   • 22% on $96,951-$130,000 = $7,271 (on $33,049)
3. Total federal tax: $18,428
4. Marginal rate: 22%
5. Effective rate: $18,428 / $160,000 = 11.5%

The TCJA Sunset: What Changes in 2026

The Tax Cuts and Jobs Act of 2017 made sweeping changes with built-in expiration dates. Key provisions are set to expire after 2025 unless Congress acts:

If TCJA expires without extension (pre-2018 rules return):

• Standard deduction drops roughly in half ($7,550 single / $15,100 MFJ approximately)
• Personal exemptions return ($5,300+ per person, adjusted for inflation)
• Top marginal rate rises from 37% to 39.6%
• 12% and 22% brackets merge back into 15% and 25% (with different thresholds)
• Child tax credit returns to $1,000 from $2,000
• Estate tax exemption drops from ~$14M to ~$7M
• SALT (state and local tax) deduction cap of $10,000 removed

The net effect for most taxpayers: Whether expiration helps or hurts depends on your situation. Taxpayers in high-tax states who previously benefited from SALT deductions may benefit from expiration. Most middle-income taxpayers would see higher effective rates if expiration occurs without offset.

As of April 2026: Congressional action is ongoing. The situation may have changed since this guide was published. Verify current law via IRS.gov or a tax professional before filing.

2026 Capital Gains Tax Brackets

Long-term capital gains (assets held more than one year) receive preferential rates. These rates apply to the capital gain portion of your income on top of ordinary income.

Single filers:

Taxable Income (incl. gains)	Long-Term Capital Gains Rate
Up to ~$47,025	0%
$47,026 - $518,900	15%
Over $518,900	20%

Married filing jointly:

Taxable Income (incl. gains)	Long-Term Capital Gains Rate
Up to ~$94,050	0%
$94,051 - $583,750	15%
Over $583,750	20%

Short-term capital gains (assets held one year or less) are taxed as ordinary income at your marginal rate.

Net Investment Income Tax (NIIT): High earners also owe an additional 3.8% on investment income above $200,000 (single) / $250,000 (MFJ), which can push the effective capital gains rate to 23.8% at the top.

Strategic implication: If you’re near the 0% capital gains threshold, consider harvesting gains in low-income years. A married couple with $90,000 in taxable income can realize $4,000 in long-term capital gains tax-free.

Key Deductions and Credits

Deductions reduce taxable income; credits reduce tax owed dollar-for-dollar. Credits are more valuable.

Above-the-line deductions (reduce AGI regardless of itemizing):

• 401(k), 403(b), 457 contributions: up to $23,500 in 2026 ($31,000 if 50+)
• Traditional IRA contributions: up to $7,000 ($8,000 if 50+), subject to income limits
• HSA contributions: up to $4,300 (individual) / $8,550 (family)
• Student loan interest: up to $2,500, subject to income phase-out
• Self-employed health insurance premiums: 100% deductible

Major credits:

• Child Tax Credit: $2,000 per child under 17 (partially refundable)
• Child and Dependent Care Credit: up to $3,000 for one child, $6,000 for two+
• Earned Income Tax Credit (EITC): up to $7,830 for three or more children in 2026
• American Opportunity Credit: up to $2,500/year for the first four years of college
• Lifetime Learning Credit: up to $2,000/year for education expenses

Self-Employment and FICA Taxes

Federal income tax is not the only federal tax most people pay. FICA taxes fund Social Security and Medicare.

For W-2 employees:

• Social Security: 6.2% (employee share) on wages up to $176,100 (2026 wage base)
• Medicare: 1.45% on all wages (no cap)
• Additional Medicare: 0.9% on wages over $200,000 (single) / $250,000 (MFJ)

For self-employed individuals:

• Self-employment tax: 15.3% on net self-employment income up to the wage base (covers both employee and employer share)
• SE deduction: You can deduct half of SE tax as an above-the-line deduction

Use the self-employment tax calculator to estimate SE tax on your business income.

State Income Taxes: An Overview

Federal tax is only part of the picture. Most states levy their own income tax.

• No income tax states: Alaska, Florida, Nevada, New Hampshire (wages only), South Dakota, Tennessee (wages only), Texas, Washington (wages only), Wyoming
• Flat rate states: several states tax all income at one flat rate (examples: Colorado at 4.4%, Illinois at 4.95%)
• Progressive states: Most states with income taxes use progressive brackets; California tops out at 13.3%, New Jersey at 10.75%, New York at 10.9% (NYC residents add 3.876%)

High earners in states like California, New York, and New Jersey face combined marginal rates above 50% when federal (37%), state (~13%), and local taxes combine. The SALT deduction cap of $10,000 limits federal tax relief for these taxpayers.

Tax Planning Actions to Take Now

Maximize pre-tax retirement contributions: Every dollar into a traditional 401(k) reduces taxable income by one dollar. At a 22% marginal rate, $10,000 in 401(k) contributions saves $2,200 in federal taxes this year.

Consider Roth vs. traditional: If you expect to be in a higher tax bracket in retirement than today (or if TCJA expiration raises rates), Roth contributions make more sense. See our 401(k) vs Roth IRA guide.

Harvest investment losses: If you have investments with unrealized losses, selling them to offset gains is called tax-loss harvesting. You can use losses to offset gains and up to $3,000 of ordinary income per year; excess losses carry forward.

HSA contributions: The triple tax advantage (deductible contribution, tax-free growth, tax-free withdrawals for medical expenses) makes HSAs the most tax-efficient account available if you’re eligible.

Check withholding: Use the IRS Tax Withholding Estimator if you had a large refund or owed significantly at filing. Adjusting withholding so you’re closer to break-even is better cash flow management.

Frequently Asked Questions

What is the difference between my marginal and effective tax rate?

Marginal rate is the rate on your last dollar of income. Effective rate is your total tax divided by total income. A single filer at $85,000 is in the 22% bracket but pays an effective rate of about 12%.

What is the 2026 standard deduction?

Approximately $15,000 for single filers and $30,000 for married filing jointly, assuming TCJA extension (pending congressional action).

How does the TCJA sunset affect me?

If TCJA expires without extension, most taxpayers face higher marginal rates and a smaller standard deduction. The net effect varies by income level and deduction situation. Monitor IRS guidance through 2026.

What are the long-term capital gains rates?

0% up to roughly $47,000 (single) or $94,000 (MFJ) in taxable income. 15% for most taxpayers. 20% for high earners above $518,900 (single) or $583,750 (MFJ).

TL;DR

• Standard deduction: $15,000 for single filers and $30,000 for married filing jointly in 2026, assuming TCJA extension — if TCJA expires without action, these drop roughly in half and push most households into higher brackets.
• Marginal vs. effective rate: A single filer earning $85,000 sits in the 22% bracket but pays an effective rate of ~12% — only the income within each bracket is taxed at that bracket’s rate.
• Capital gains advantage: Long-term gains are taxed at 0% for single filers with taxable income up to ~$47,000 — a married couple under $94,000 can realize gains completely tax-free.
• Retirement contributions: Every dollar into a traditional 401(k) — up to $23,500 in 2026 — reduces your taxable income by one dollar, saving $2,200 at a 22% marginal rate on a $10,000 contribution.
• Self-employment tax: Self-employed individuals owe 15.3% SE tax on net income up to the $176,100 wage base, but can deduct half of it as an above-the-line deduction to partially offset the burden.