Money is weird. One day you think you’ve got your budget figured out, and the next, the IRS drops a new set of numbers that changes the math on your paycheck. Honestly, keeping up with federal changes feels like a part-time job. But if you’re looking at what are the 2026 tax brackets, the news is actually a bit more settled than we thought it would be a couple of years ago.
For a long time, everyone was panicking about the "tax cliff"—that moment at the end of 2025 when the Tax Cuts and Jobs Act (TCJA) was supposed to expire and send everyone’s rates soaring back to the old 2017 levels. But then the One Big Beautiful Bill Act (OBBBA) stepped in during mid-2025. It basically took the "temporary" lower rates we’ve been using and made them permanent.
So, breathe.
You aren't going to see the 12% bracket jump back to 15% overnight. But while the rates (the percentages) are staying the same, the "buckets" of income they apply to have shifted because of inflation.
Breaking Down the 2026 Tax Brackets
The IRS uses a "progressive" system. It’s kinda like a series of buckets. You don’t pay your highest rate on every single dollar you earn. Instead, your first chunk of money is taxed at 10%, the next chunk at 12%, and so on.
For Single Filers, here is how those buckets look for the 2026 tax year:
- 10% Rate: $0 to $12,400
- 12% Rate: $12,401 to $50,400
- 22% Rate: $50,401 to $105,700
- 24% Rate: $105,701 to $201,775
- 32% Rate: $201,776 to $256,225
- 35% Rate: $256,226 to $640,600
- 37% Rate: $640,601 or more
Now, if you are Married Filing Jointly, the buckets are wider:
- 10% Rate: $0 to $24,800
- 12% Rate: $24,801 to $100,800
- 22% Rate: $100,801 to $211,400
- 24% Rate: $211,401 to $403,550
- 32% Rate: $403,551 to $512,450
- 35% Rate: $512,451 to $768,700
- 37% Rate: $768,701 or more
If you’re a Head of Household, your 10% bracket goes up to $17,700 and the 12% bracket stretches to $67,450. These adjustments are roughly a 2.7% increase over 2025. This is actually good news—it means if your boss gave you a small cost-of-living raise, the IRS isn't necessarily going to push you into a higher bracket just for making enough to keep up with the price of eggs.
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The Standard Deduction Just Got Bigger
Most people don't itemize. They just take the "standard deduction" and call it a day. For 2026, that number is going up again.
If you're single, your standard deduction is now $16,100.
Married couples filing together get $32,200.
Heads of household get $24,150.
Think of this as "free" money from the IRS's perspective. You don't pay a cent of federal income tax on this amount. If you're a single person earning $50,000, you only actually pay taxes on $33,900 after the deduction.
Wait, there’s a new thing for seniors too.
Thanks to the OBBBA, if you’re 65 or older, there’s an extra "Senior Deduction" of $6,000 for individuals or $12,000 for couples, provided your income isn't too high (the phase-out starts at $75,000 for singles). This is separate from the standard deduction, which is a massive win for retirees.
Why the 22% and 24% Brackets are the "Sweet Spot"
If you're in the middle class, you’re likely living in the 22% or 24% ranges. These are the widest brackets in the code. For a married couple, you can earn between roughly $100,000 and $400,000 and still stay within these two rates.
Financial planners like Hans Scheil and Tom Hegna often point out that this is a "planning window." Since these rates are now permanent, it makes things like Roth IRA conversions or taking capital gains a lot more predictable. You aren't constantly looking over your shoulder wondering if the 24% rate will suddenly become 28% next January.
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Credits and Phase-outs: The Fine Print
Tax brackets are only half the story. The other half is credits.
The Child Tax Credit is staying at $2,200 for 2026. It didn't drop back to $1,000 like people feared. However, the refundable portion—the part you get back even if you owe zero taxes—is capped at $1,700.
If you’re a business owner, the Qualified Business Income (QBI) deduction—that 20% write-off for pass-through entities—is also permanent now. The 2026 threshold for that is $201,775 for singles and $403,500 for joint filers. Above that, things get complicated with "specified service trade" rules, so you'll want to talk to a CPA if you're a high-earning consultant or doctor.
What You Should Do Right Now
Knowing what are the 2026 tax brackets is useless unless you move some levers.
First, check your withholding. If you haven't touched your W-4 since 2023, you're likely overpaying. With the standard deduction and brackets moving up, your employer might be taking out more than they need to.
Second, look at your retirement contributions. The 401(k) limit for 2026 is $24,500. If you're over 50, you can toss in another $8,000. For IRAs, the limit is **$7,500**. Maximizing these doesn't just save for the future; it lowers your "taxable income" today, potentially keeping you in a lower bracket.
Third, revisit the SALT deduction. The "State and Local Tax" cap was famously $10,000 for years. The OBBBA actually raised this to **$40,000** for 2026, though it starts to taper off if you make more than $500,000. If you live in a high-tax state like California, New Jersey, or New York, you might actually be able to itemize again and save a fortune.
The 2026 tax landscape is surprisingly stable, but "stable" doesn't mean "static." Small shifts in inflation indexing can mean thousands of dollars in your pocket—or the government's—depending on how you plan your year.
To get ahead for next year:
- Calculate your projected 2026 AGI by subtracting your 401(k) contributions from your gross salary.
- Apply the 2026 standard deduction ($16,100 for singles / $32,200 for joint) to find your taxable income.
- Map that taxable income against the new brackets to see exactly where your last dollar is being taxed.
- Adjust your estimated tax payments if you're self-employed to reflect the 2.7% bracket expansion.