Who this applies to
Anyone filing a 2026 federal return, especially business owners and households near a bracket line.
Key questions
- Which 2026 bracket does your last dollar of taxable income fall in?
- Is any income close enough to a bracket line that timing or deferral would change your rate?
- Do you now qualify for the senior deduction, the higher child tax credit, or the non-itemizer charitable deduction?
Review with the OICPA team
- Project 2026 taxable income and identify your top bracket
- Size retirement contributions and other deferrals against the bracket lines
- Update estimated payments using the 2026 figures
On this page
The IRS has published the 2026 inflation adjustments in Revenue Procedure 2025-32. The seven tax rates stay the same: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. What changes is where each bracket starts and ends, plus the standard deduction and several deductions added by the One Big Beautiful Bill Act. These numbers apply to income you earn in 2026 and report on the return you file in 2027.
2026 standard deduction
- Single or married filing separately: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
- Age 65 or older, or blind: an extra $2,050 if unmarried, or $1,650 per qualifying spouse if married
2026 tax brackets: single filers
- 10% on taxable income up to $12,400
- 12% from $12,400 to $50,400
- 22% from $50,400 to $105,700
- 24% from $105,700 to $201,775
- 32% from $201,775 to $256,225
- 35% from $256,225 to $640,600
- 37% above $640,600
2026 tax brackets: married filing jointly
- 10% up to $24,800
- 12% from $24,800 to $100,800
- 22% from $100,800 to $211,400
- 24% from $211,400 to $403,550
- 32% from $403,550 to $512,450
- 35% from $512,450 to $768,700
- 37% above $768,700
2026 tax brackets: head of household
- 10% up to $17,700
- 12% from $17,700 to $67,450
- 22% from $67,450 to $105,700
- 24% from $105,700 to $201,750
- 32% from $201,750 to $256,200
- 35% from $256,200 to $640,600
- 37% above $640,600
Married couples filing separately use the single brackets, except that the 35% bracket ends at $384,350.
How the brackets actually work
Only the income inside each bracket is taxed at that bracket's rate. Moving into a higher bracket never raises the tax on income you already earned below it.
Take a single filer with $80,000 of taxable income. The first $12,400 is taxed at 10%, which is $1,240. The next $38,000, up to $50,400, is taxed at 12%, which is $4,560. The remaining $29,600 is taxed at 22%, which is $6,512. The total is $12,312. That person is "in the 22% bracket," but the tax equals about 15.4% of taxable income.
The difference matters when you plan. A deduction saves tax at your top rate. A $10,000 retirement contribution for that same person saves about $2,200 of federal income tax, not $1,231.
Other 2026 changes that affect most households
- Senior deduction. Taxpayers 65 and older can deduct an extra $6,000 each for 2025 through 2028. It shrinks by 6% of modified AGI above $75,000 ($150,000 for joint filers).
- Child tax credit. The credit is $2,200 per qualifying child and is reduced by $50 for each $1,000 of modified AGI above $200,000 ($400,000 for joint filers).
- Charitable gifts without itemizing. Starting in 2026, people who take the standard deduction can deduct up to $1,000 of cash gifts to charity ($2,000 for joint filers).
- State and local taxes. The SALT deduction cap is $40,400 for 2026, with a phase-down for higher incomes. See our SALT cap guide.
What to do with these numbers
Find your top bracket for 2026, then look at what is close to a bracket line. Income just above a line is where deferrals, retirement contributions, and the timing of bonuses or equipment purchases save the most.
If you own a business, the federal brackets are only part of the picture. Self-employment tax, the QBI deduction, and state tax all change the answer. The free Owner Tax Planner runs all of them on one 2026 return, and the quarterly estimated tax calculator uses the new figures to set your payments.
Frequently asked questions
When do the 2026 tax brackets apply?
They apply to income you earn from January 1 through December 31, 2026. You use them on the return you file in 2027, which for most people is due April 15, 2027. Your 2025 return, filed in 2026, uses the 2025 brackets.
Did tax rates go up in 2026?
No. The One Big Beautiful Bill Act made the seven rates from the 2017 tax law permanent. Only the income ranges for each bracket changed, and they moved up with inflation.
What is the 2026 standard deduction for a married couple who are both over 65?
The base amount is $32,200. Each spouse adds $1,650 for being 65 or older, for $35,500. Each spouse can also claim the $6,000 senior deduction, which shrinks once modified AGI passes $150,000. At lower incomes, that is up to $47,500 in total.
Do these brackets apply to capital gains?
Not to long-term capital gains or qualified dividends. Those have their own 0%, 15%, and 20% rates, with separate income thresholds that were also adjusted for inflation. Short-term gains are taxed at the ordinary rates above.
How can I keep more income out of my top bracket?
The usual tools are retirement plan contributions, health savings account contributions, timing bonuses or business income into a different year, and for business owners, timing equipment purchases. The Owner Tax Planner shows the effect of each one.
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