Federal Income Tax Brackets & Standard Deduction 2026: Official Tables & Rates
Welcome to 2026. As you start receiving your paychecks for the new year, you might notice a slight change in your take-home pay. This is because the IRS has adjusted the Federal Income Tax Brackets and the Standard Deduction to account for inflation.
Understanding these new 2026 numbers is crucial for two reasons: avoiding a surprise tax bill next April and ensuring you aren't having too much money withheld from your paycheck today. In this comprehensive guide, we break down the 7 tax brackets, explain the difference between your "marginal" and "effective" tax rate, and help you decide if you should itemize or take the new, higher standard deduction.
1. The 2026 Standard Deduction (The "Tax-Free" Money)
Before we look at the tax rates, we must look at the Standard Deduction. This is the portion of your income that the IRS effectively declares "tax-free." You subtract this amount from your earnings before you calculate any tax.
For Tax Year 2026 (income earned from Jan 1, 2026 – Dec 31, 2026), the amounts are:
| Filing Status | 2026 Standard Deduction Amount |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Head of Household | $22,500 |
| Married Filing Separately | $15,000 |
The "Bonus" Deduction (Over 65 or Blind)
If you are age 65 or older, or if you are legally blind, you get an additional deduction on top of the numbers above.
- Unmarried (Single/HOH): Add $1,950.
- Married: Add $1,550 per qualifying person.
2. 2026 Federal Tax Brackets (The 7 Tiers)
The U.S. uses a "Progressive Tax System." This is the most misunderstood concept in finance. Being in the "22% Bracket" does NOT mean all your money is taxed at 22%.
Instead, your income is filled into buckets. The first bucket is taxed at 10%, the next at 12%, and so on. Only the money in that specific bucket is taxed at that rate.
Table A: Single Filers (2026)
| Tax Rate | Taxable Income Range | Tax Owed |
|---|---|---|
| 10% | $0 to $11,925 | 10% of taxable income. |
| 12% | $11,926 to $48,475 | $1,192.50 + 12% of amount over $11,925. |
| 22% | $48,476 to $103,350 | $5,578.50 + 22% of amount over $48,475. |
| 24% | $103,351 to $197,300 | $17,651 + 24% of amount over $103,350. |
| 32% | $197,301 to $250,525 | $40,199 + 32% of amount over $197,300. |
| 35% | $250,526 to $626,350 | $57,231 + 35% of amount over $250,525. |
| 37% | Over $626,350 | $188,769.75 + 37% of amount over $626,350. |
Table B: Married Filing Jointly (2026)
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 to $23,850 |
| 12% | $23,851 to $96,950 |
| 22% | $96,951 to $206,700 |
| 24% | $206,701 to $394,600 |
| 32% | $394,601 to $501,050 |
| 35% | $501,051 to $751,600 |
| 37% | Over $751,600 |
Table C: Head of Household (2026)
| Tax Rate | Taxable Income Range |
|---|---|
| 10% | $0 to $17,000 |
| 12% | $17,001 to $64,850 |
| 22% | $64,851 to $103,350 |
| 24% | $103,351 to $197,300 |
| 32% | $197,301 to $250,500 |
| 35% | $250,501 to $626,350 |
| 37% | Over $626,350 |
3. Example Calculation: How "Marginal Tax" Actually Works
Let's calculate the tax for a Single person earning $60,000 in 2026 to see why the math matters.
$60,000 (Gross) - $15,000 (Standard Deduction) = $45,000 Taxable Income.
Step 2: Apply the Brackets
Since Taxable Income is $45,000, we look at the Single Table.
• The first $11,925 is taxed at 10% = $1,192.50
• The remaining $33,075 (which is $45k - $11.9k) is taxed at 12% = $3,969.00
Step 3: Total Tax
$1,192.50 + $3,969.00 = $5,161.50
Effective Tax Rate:
$5,161.50 divided by $60,000 = 8.6%.
(See? Even though you are in the 12% bracket, you only pay 8.6% in total!)
4. Long-Term Capital Gains Tax Rates (2026)
If you sell stocks, real estate, or cryptocurrency that you held for more than one year, you pay a different, lower tax rate. This is the government's way of encouraging long-term investing.
| Tax Rate | Single Income Limit | Married Joint Limit |
|---|---|---|
| 0% Tax | Up to $49,100 | Up to $98,200 |
| 15% Tax | $49,101 to $540,850 | $98,201 to $608,350 |
| 20% Tax | Over $540,850 | Over $608,350 |
5. Standard Deduction vs. Itemized Deduction: Which to Choose?
This is the big decision you make every time you file. You can choose ONE path, not both.
- Standard Deduction: Quick, easy, and no receipts needed. In 2026, about 90% of Americans will choose this because the limits ($15k/$30k) are so high.
- Itemized Deduction: You list your expenses (Mortgage Interest, State Taxes/SALT, Charitable Donations, Medical expenses over 7.5% of income).
6. How to Lower Your Taxable Income in 2026
If looking at these tables makes you nervous, remember that you can lower your "Taxable Income" by contributing to pre-tax accounts. Every dollar you put here is removed from the top bracket.
- 401(k) / 403(b): 2026 Contribution limit is expected to be $23,500.
- Traditional IRA: Limit is $7,000.
- HSA (Health Savings Account): Limit is $4,300 for individuals.
Conclusion
The 2026 Tax Brackets and Standard Deduction have shifted in your favor due to inflation adjustments. This means you can earn slightly more money this year before hitting higher tax rates.
Use these numbers to update your W-4 form with your employer. If you don't adjust your withholding, you might find that you are giving the government an interest-free loan (getting a huge refund) or, worse, underpaying and facing a penalty next April.