US Tax Brackets 2026: New IRS Rates, Deductions & What Changed
The IRS has confirmed new federal income tax brackets and standard deductions for 2026 — and thanks to the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, most of the 2017 tax cuts are now permanent. The standard deduction rises to $16,100 for single filers and $32,200 for married couples filing jointly — meaning slightly bigger paychecks for most workers in 2026.
Use our free US Income Tax Calculator — updated with the confirmed 2026 IRS brackets — to see your exact tax and take-home pay.
2026 Federal Income Tax Brackets
The federal income tax has seven rates in 2026: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The IRS adjusted income thresholds upward — by about 4% for the bottom two brackets and 2.3% for higher brackets — under OBBBA’s inflation adjustment rules.
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,775 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,776 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | $640,601 or more | $768,701 or more | $640,601 or more |
These are marginal rates — you only pay the higher rate on income that falls within that bracket, not your entire income. These brackets apply to income earned in 2026, filed on tax returns in early 2027.
2026 Standard Deduction
The standard deduction increases in 2026 — up by $350 for single filers and $700 for married couples filing jointly compared to 2025.
| Filing Status | 2026 Standard Deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Head of Household | $24,150 |
Extra deduction for seniors: Taxpayers aged 65 and older can claim an additional standard deduction of $2,050 (single) or $1,650 per qualifying spouse (married). On top of this, OBBBA introduced a new $6,000 senior deduction per qualifying taxpayer 65+, which phases out at 6% for income over $75,000 (single) or $150,000 (joint).
What Changed Under OBBBA — Made Permanent
The One Big Beautiful Bill Act, signed in July 2025, permanently extended most individual provisions from the 2017 Tax Cuts and Jobs Act (TCJA) that were scheduled to expire at the end of 2025:
| Provision | Status in 2026 |
|---|---|
| 10–37% tax rate structure | Permanent (no sunset) |
| Doubled standard deduction | Permanent |
| Child Tax Credit ($2,200/child) | Permanent, now inflation-adjusted |
| QBI deduction (Sec. 199A, 20%) | Permanent |
| Estate/gift tax exemption | Raised to $15 million per person |
| SALT deduction cap | Raised (see below) |
| Personal exemption | Remains $0 (eliminated permanently) |
New temporary breaks introduced by OBBBA for 2025–2028:
- Tax breaks on tips and overtime pay income
- Bonus deduction for seniors ($6,000, described above)
- Bigger State and Local Tax (SALT) deduction
- Trump Accounts — new tax-advantaged savings accounts for children
Many of these changes technically applied starting in 2025, but the IRS did not update withholding tables for most of the year — so paychecks largely stayed the same through 2025. 2026 withholding tables reflect the changes, meaning workers should see slightly larger paychecks starting this year, assuming income stays flat.
Child Tax Credit 2026
The maximum Child Tax Credit (CTC) is $2,200 per qualifying child in 2026 — up from $2,000 under the original TCJA. OBBBA made this expanded credit permanent and added inflation adjustments going forward. The refundable portion remains $1,700 for 2026.
2026 Capital Gains Tax Brackets
Long-term capital gains are taxed at different rates than ordinary income — 0%, 15%, or 20% depending on your taxable income:
| Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | $0 – $49,450 | $0 – $98,900 | $0 – $66,200 |
| 15% | $49,450 – $545,500 | $98,900 – $613,700 | $66,200 – $579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $579,600 |
2026 Alternative Minimum Tax (AMT)
The AMT is a parallel tax system designed to ensure high earners pay at least a minimum amount of tax. For 2026:
| Filing Status | AMT Exemption | Phaseout Begins At |
|---|---|---|
| Unmarried Individuals | $90,100 | $500,000 |
| Married Filing Jointly | $140,200 | $1,000,000 |
Note: OBBBA returned the AMT phaseout thresholds to 2018 levels and accelerated the phaseout rate from 25% to 50 cents per dollar. In 2025, phaseouts began at $625,350 (single) and $1,252,700 (joint) — meaning the 2026 thresholds represent a tax increase for some high earners who benefit from large itemized deductions.
What This Means for Your Paycheck
For most workers, the 2026 changes translate to a modest increase in take-home pay — typically a few extra dollars per paycheck, unless you qualify for specific OBBBA provisions like the tips/overtime deductions or the senior bonus deduction.
Three things determine your 2026 take-home pay:
- Updated withholding tables — your employer’s payroll system should reflect 2026 figures starting with your first 2026 paycheck
- Higher standard deduction — reduces your taxable income by $350–$700 more than 2025
- Inflation-adjusted brackets — slightly more income taxed at lower rates before hitting higher brackets
If your income stayed flat from 2025 to 2026, you should see a small paycheck increase. If your income grew, the bracket adjustments help offset some of that “bracket creep” from inflation.
2026 US Income Tax Calculator
Your exact 2026 tax depends on:
- Your filing status (single, married filing jointly, head of household)
- Your gross income and deductions
- Whether you itemize or take the standard deduction
- Tax credits you qualify for (Child Tax Credit, EITC, etc.)
- Any OBBBA-specific deductions (tips, overtime, senior bonus)
Use the free finzotools.com US Income Tax Calculator — updated with confirmed 2026 IRS brackets and standard deductions — to calculate your exact federal tax liability and take-home pay.
👉 Calculate Your 2026 US Income Tax Now →
Frequently Asked Questions
What are the 2026 federal income tax brackets?
The 2026 federal income tax has seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 10% bracket applies to income up to $12,400, while the top 37% rate applies to income above $640,600. These brackets apply to income earned in 2026 and filed on returns in early 2027.
How much is the standard deduction in 2026?
The 2026 standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. This represents an increase of $350 (single) and $700 (married) compared to 2025, reflecting both inflation adjustments and OBBBA provisions.
What changed under the One Big Beautiful Bill Act (OBBBA) for 2026?
OBBBA, signed in July 2025, made the TCJA’s 10-37% tax rate structure and doubled standard deduction permanent (removing their scheduled 2025 expiration). It also increased the Child Tax Credit to $2,200, made the 20% pass-through business deduction permanent, raised the estate tax exemption to $15 million, and introduced new temporary deductions for tips, overtime pay, and seniors aged 65+.
Will my paycheck be bigger in 2026?
For most workers with flat income, yes — slightly. The IRS updated 2026 withholding tables to reflect OBBBA changes and inflation-adjusted brackets, which typically means a few extra dollars per paycheck. Workers who qualify for new deductions (tips, overtime, or the senior bonus deduction) may see larger increases.
What is the Child Tax Credit for 2026?
The maximum Child Tax Credit in 2026 is $2,200 per qualifying child, with $1,700 of that being refundable. OBBBA made the expanded CTC permanent and added inflation adjustments for future years.
Are the 2017 Trump tax cuts permanent now?
Most individual provisions from the 2017 Tax Cuts and Jobs Act (TCJA) that were scheduled to expire after 2025 have been made permanent by the One Big Beautiful Bill Act (OBBBA), signed in July 2025. This includes the current tax rate structure (10-37%), the doubled standard deduction, and the 20% qualified business income deduction.
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Last updated: June 2026. Tax figures based on IRS Revenue Procedure 2025-32 and the One Big Beautiful Bill Act (OBBBA), signed July 2025. These brackets apply to income earned in 2026, for tax returns filed in early 2027. Always verify with a qualified tax professional for your specific situation.