Seven brackets, 10% through 37%. Your marginal rate applies only to income within that band — not your full income. Here are the confirmed 2026 thresholds and how to calculate what you actually owe.
The 2026 federal income tax brackets set seven marginal rates — 10% through 37% — on taxable income after deductions. Being in the 22% bracket means only the income above that threshold is taxed at 22%, not your total income. Your effective (average) rate is always lower than your marginal rate, and the $16,100 standard deduction for single filers reduces taxable income before any bracket applies.
IRS Rev. Proc. 2025-32 sets the income thresholds for each marginal rate. These brackets apply to income earned January 1 through December 31, 2026 — reported on a return filed in spring 2027.
Single filers
| Rate | Taxable income range | |---|---| | 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
| Rate | Taxable income range | |---|---| | 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 |
All seven rates were enacted under the Tax Cuts and Jobs Act of 2017 and made permanent for 2026 and beyond by H.R. 1, the One Big Beautiful Bill Act (signed July 4, 2025). Without that legislation, the TCJA rate structure would have expired after December 31, 2025, and rates would have reverted to higher pre-2017 brackets.
The most common misunderstanding about tax brackets: each rate applies only to the income that falls within that band — not to your total income.
If you’re a single filer with $80,000 in taxable income:
Your marginal rate is 22% — the rate on the last dollar earned. Your effective rate is $12,312 ÷ $80,000 = 15.4%. That is what you pay on average across your full taxable income. No one in the 22% bracket pays 22% on everything.
Brackets apply to taxable income, not gross wages. The 2026 standard deduction reduces income before the first bracket applies:
A single person with $75,000 in wages starts with taxable income of $75,000 − $16,100 = $58,900, putting them in the 22% bracket. But their effective rate on the full $75,000 gross is approximately 11%. Other above-the-line adjustments — traditional 401(k) or IRA contributions, student loan interest deductions, qualified business income deductions for the self-employed — reduce taxable income further before any bracket applies.
For single filers after taking the $16,100 standard deduction:
| Gross wages | Approx. taxable income | Marginal bracket | |---|---|---| | $40,000 | ~$23,900 | 12% | | $70,000 | ~$53,900 | 22% | | $120,000 | ~$103,900 | 22% | | $130,000 | ~$113,900 | 24% | | $275,000 | ~$258,900 | 35% |
These are estimates. Business income, investment income, freelance earnings, deductible business expenses, and retirement contributions each shift the result. The bracket you land in depends on your complete tax picture, not a single income source.
Knowing your marginal bracket creates actionable moves before December 31:
If you’re near the top of a lower bracket: Traditional 401(k) contributions reduce taxable income dollar-for-dollar. Contributing enough to keep taxable income below the 22% floor (under $50,400 for single filers) saves $0.10 per dollar compared to crossing into the next band. Deferring a year-end bonus or accelerating a deductible business expense into December has the same effect.
If you have unused room in a lower bracket: A Roth conversion converts pre-tax retirement funds to Roth at today’s marginal rate. Filling the 12% or 22% bracket with converted dollars locks in a lower rate than you may face in a higher-income year or when required minimum distributions begin.
If you have investment losses: Tax-loss harvesting offsets realized capital gains dollar-for-dollar and up to $3,000 of ordinary income annually. Unused losses carry forward indefinitely to future tax years.
Verify that employer withholding matches your projected liability. The IRS Tax Withholding Estimator and the W-4 worksheets help reconcile pay-period withholding against full-year income tax — and catch underpayment before a penalty accrues.
The One Big Beautiful Bill Act did not modify the seven bracket rates or introduce new ones. What changed:
The statutory basis for the rate structure is 26 U.S.C. § 1. The IRS publishes inflation-adjusted thresholds via Revenue Procedure each October, effective for the following tax year.
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*This article is educational and does not constitute tax, legal, or financial advice. Consult a qualified tax professional for guidance specific to your situation.*
For 2026, there are seven federal income tax brackets: 10% (up to $12,400 for single filers), 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), and 37% (over $640,600). Married filing jointly thresholds are set by IRS Rev. Proc. 2025-32. These apply to taxable income after the standard deduction or itemized deductions.
Your marginal tax rate is the rate applied to the last dollar of taxable income — the bracket you’re in. Your effective tax rate is total federal income tax divided by total taxable income. Because each bracket applies only to income within its range, your effective rate is always lower than your marginal rate. A single filer with $80,000 in taxable income has a 22% marginal rate but approximately a 15.4% effective rate.
No. OBBBA did not modify the seven bracket rates (10%–37%) or create new ones. It made the existing TCJA bracket structure permanent, eliminating a sunset that would have reverted rates after 2025. It also created income exclusions for qualified tips and overtime pay (2025–2028) that can reduce taxable income and therefore your effective bracket.
Brackets apply to taxable income, not gross income. The 2026 standard deduction ($16,100 for single filers, $32,200 for married filing jointly) is subtracted before any bracket applies. A single person earning $60,000 in wages has taxable income of roughly $43,900 after the standard deduction, landing in the 12% bracket — not the 22% bracket that $60,000 gross might suggest.
Up to 85% of Social Security benefits can be included in taxable income depending on your combined income (AGI plus nontaxable interest plus half of Social Security benefits). The included portion is taxed at your ordinary income tax rate — whatever bracket that income falls in. Retirees with combined income under $25,000 (single) or $32,000 (married filing jointly) owe no federal income tax on Social Security.