2026 federal tax brackets
The 2026 tax brackets apply to taxable income (after the standard deduction). Standard deductions: $16,100 single / $24,150 HoH / $32,200 married (OBBB Act).
| Rate | Single | Married Filing Jointly |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 |
| 37% | $640,600+ | $768,700+ |
How progressive taxation works
The US uses a progressive tax system — you don't pay one flat rate on all income. Each portion is taxed only at the rate for that bracket:
Example: $75,000 taxable income (single, 2026)
10% on first $11,925 = $1,193
12% on $11,925–$48,475 = $4,386
22% on $48,475–$75,000 = $5,836
Total tax: $11,414 — Effective rate: 15.2% (not 22%)
Key point: Moving into a higher bracket does NOT mean all your income is taxed at that rate. Only the dollars above the bracket threshold are taxed at the higher rate. You always take home more money with a raise.
Marginal vs. effective tax rate
Marginal rate
The rate on your last dollar of income — your tax bracket. At $75K single: 22%. Matters for evaluating raises, bonuses, and deductions.
Effective rate
Total tax ÷ total income — the average rate you actually pay. At $75K single: ~15.2%. Always lower than marginal rate. Shows overall tax burden.
2025 vs. 2026 bracket comparison
Key changes from 2025 to 2026 (single filer shown). The OBBB Act significantly increased the standard deduction:
| Item | 2025 | 2026 |
|---|---|---|
| Std. deduction (single) | $15,750 | $16,100 ↑ |
| Std. deduction (married) | $31,500 | $32,200 ↑ |
| 12% bracket ends (single) | $48,475 | $50,400 ↑ |
| 37% bracket starts (single) | $626,350 | $640,600 ↑ |
How deductions lower your bracket
Deductions reduce your taxable income, which can move you into a lower bracket. On $90,000 gross income (single): after the $16,100 standard deduction, your taxable income is $73,900 — placing you in the 22% bracket instead of the 24% bracket you'd be in without the deduction.
Additional deductions like 401(k) contributions and HSA further reduce taxable income. Contributing $10,000 to a 401(k) on top of the standard deduction would bring taxable income down to $63,900.
FAQs
What tax bracket am I in?
Your tax bracket is determined by your taxable income (gross income minus deductions) and filing status. For 2026, a single filer with $75,000 taxable income is in the 22% bracket because their top dollars of income fall between $50,400 and $105,700. Use the calculator above to see your exact bracket and how much tax you owe at each rate.
How do tax brackets work?
Tax brackets are progressive — you don't pay one flat rate on all your income. Instead, each portion of income is taxed at the rate for that bracket. On $75,000 taxable income (single), you pay 10% on the first $12,400, 12% on $12,400–$50,400, and 22% on $50,400–$75,000. Your total tax is about $10,716 — an effective rate of 14.3%, not 22%.
What is the difference between marginal and effective tax rate?
Marginal rate is the rate on your last dollar of income (your bracket — e.g., 22%). Effective rate is your total tax divided by total income — the average rate you actually pay (e.g., 14.3%). The effective rate is always lower than the marginal rate because your first dollars are taxed at lower brackets. Your marginal rate matters for decisions about earning more; effective rate tells you your overall burden.
Did tax brackets change in 2026?
Yes — bracket thresholds were adjusted upward for inflation. The standard deduction increased to $16,100 single (up from $15,750), $32,200 married (up from $31,500). The seven rate tiers (10%, 12%, 22%, 24%, 32%, 35%, 37%) remain the same. Use the 2025/2026 toggle above to compare.
What is the 2026 standard deduction?
For 2026: $16,100 for single filers, $24,150 for head of household, and $32,200 for married filing jointly. The standard deduction is subtracted from your gross income before tax brackets are applied. About 90% of taxpayers take the standard deduction rather than itemizing.
How can I lower my tax bracket?
You can reduce your taxable income (and potentially your bracket) by: 1) Maximizing pre-tax retirement contributions (401k, Traditional IRA). 2) Contributing to an HSA. 3) Taking all eligible above-the-line deductions. 4) Itemizing deductions if they exceed the standard deduction. 5) Timing income and deductions strategically across tax years.
Does a raise push all my income into a higher bracket?
No — this is a very common misconception. Only the income above the bracket threshold is taxed at the higher rate. If a $5,000 raise pushes you from the 22% bracket into the 24% bracket, only the dollars above the 24% threshold are taxed at 24%. The rest of your income is still taxed at the lower rates. You always take home more with a raise.
What is the highest federal tax bracket?
The highest federal income tax rate is 37%, which applies to taxable income above $640,600 for single filers and $768,700 for married filing jointly (2026). This rate has been 37% since 2018 (Tax Cuts and Jobs Act). Before 2018, the top rate was 39.6%. The 37% rate was extended by the OBBB Act signed in July 2025.
How are capital gains taxed differently from ordinary income?
Long-term capital gains (assets held 1+ year) are taxed at preferential rates: 0%, 15%, or 20% — significantly lower than ordinary income brackets. Short-term capital gains (held less than 1 year) are taxed as ordinary income using these same brackets. This is why holding investments for at least one year before selling can save substantial taxes.
Do states have their own tax brackets?
Yes — 28 states use progressive brackets (like federal), 14 states use a flat rate, and 9 states have no income tax at all. State brackets are applied separately from federal brackets. Use our state paycheck calculators to see your combined federal + state tax burden for any state.