The 2026 federal income tax brackets
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.
Marginal rate vs. effective rate
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:
- 10% on the first $12,400: $1,240
- 12% on $12,401–$50,400 (a $38,000 slice): $4,560
- 22% on $50,401–$80,000 (a $29,600 slice): $6,512
- Total federal income tax: $12,312
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.
How the standard deduction lowers taxable income first
Brackets apply to taxable income, not gross wages. The 2026 standard deduction reduces income before the first bracket applies:
- Single / married filing separately: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
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.
Which bracket are you in? A quick reference
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.
Year-end bracket planning
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.
What OBBBA changed — and what it didn’t
The One Big Beautiful Bill Act did not modify the seven bracket rates or introduce new ones. What changed:
- Permanence: The TCJA rate structure is now law without a sunset. Annual inflation adjustments continue via IRS Rev. Proc. each fall.
- New income exclusions: Qualified tip income and qualifying overtime pay are excluded from federal income tax for 2025–2028. These are separate income exclusions, not bracket changes. Workers with tips or overtime may have taxable income — and therefore an effective bracket — lower than a gross-minus-deduction estimate.
- Higher standard deduction permanently: The inflation-adjusted $16,100 single deduction shields more income before the first bracket applies.
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.
This article is educational and does not constitute tax, legal, or financial advice. Consult a qualified tax professional for guidance specific to your situation.