Tax Brackets Explained: 2026 Federal Income Tax Rates
The 2026 federal income tax brackets for every filing status, how marginal and effective tax rates work with step-by-step examples, why a raise never lowers take-home pay and how to use brackets in planning.
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Key takeaways
- Seven federal rates apply in 2026: 10%, 12%, 22%, 24%, 32%, 35% and 37%. The 2025 tax law made these rates permanent.
- Brackets apply to taxable income, which is income after the standard deduction ($16,100 single, $32,200 joint in 2026) or itemized deductions.
- Your marginal rate applies only to your last dollars of income; your effective rate is total tax divided by income and is much lower.
- A single filer earning $75,000 in 2026 pays about $7,670 of federal income tax, an effective rate of 10.2%, while sitting in the 22% bracket.
Tax brackets are one of the most misunderstood parts of the tax code. Many people believe that moving into a higher bracket raises the tax on all their income. It does not. The U.S. uses a progressive system: income is taxed in layers, and each layer has its own rate. Once you see how the layers work, decisions about raises, retirement contributions and side income become much clearer.
2026 federal income tax brackets
The IRS adjusts the brackets for inflation every year. These figures from Revenue Procedure 2025-32 apply to income earned in 2026, reported on returns filed in 2027.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | Up to $12,400 | Up to $24,800 | Up to $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 – $201,750 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,751 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Married couples filing separately use the single brackets up to the 35% rate, which ends at $384,350 for them. Long-term capital gains and qualified dividends have their own rates of 0%, 15% and 20%; see the capital gains tax calculator.
How marginal tax brackets work
Take a single filer with a $75,000 salary and no other income. After the $16,100 standard deduction, taxable income is $58,900. The tax is calculated layer by layer:
| Layer of taxable income | Rate | Tax |
|---|---|---|
| First $12,400 | 10% | $1,240 |
| Next $38,000 ($12,401 to $50,400) | 12% | $4,560 |
| Last $8,500 ($50,401 to $58,900) | 22% | $1,870 |
| Total | $7,670 |
This person is "in the 22% bracket," but only $8,500 of income is taxed at 22%. The total tax is 10.2% of the $75,000 salary. That 10.2% is the effective rate; the 22% is the marginal rate.
Marginal vs. effective tax rate
| Household, 2026 | Income | Taxable income | Federal income tax | Effective rate | Marginal rate |
|---|---|---|---|---|---|
| Single | $75,000 | $58,900 | $7,670 | 10.2% | 22% |
| Married filing jointly | $150,000 | $117,800 | $15,340 | 10.2% | 22% |
| Head of household | $55,000 | $30,850 | $3,348 | 6.1% | 12% |
The examples assume wage income, the standard deduction and no credits. Credits such as the child tax credit ($2,200 per qualifying child in 2026) reduce the tax further.
Why the marginal rate still matters
The marginal rate tells you what happens to the next dollar you earn or deduct:
- Raises and side income: a $5,000 raise for the $75,000 earner above adds about $1,100 of federal income tax at 22%, plus 7.65% for Social Security and Medicare. Take-home pay still rises.
- Pre-tax retirement contributions: each $1,000 put into a traditional 401(k) saves $220 of federal tax at 22%. Comparing today's marginal rate with your expected rate in retirement is the core of the traditional vs. Roth decision.
- Deductions: a deduction is worth your marginal rate times its amount; see standard deduction vs. itemized.
Common bracket myths
- "A raise can lower my take-home pay." Not from income tax brackets: only the extra income is taxed at the higher rate. Rare exceptions come from benefits or credits that phase out at certain incomes.
- "My refund shows my tax rate." A refund only means more was withheld than you owed; it says nothing about your rate.
- "Everyone pays the same rate on wages." Wages are also subject to FICA taxes: 6.2% Social Security up to $184,500 in 2026 and 1.45% Medicare on all wages. These are separate from income tax brackets.
How to estimate your own tax
- Add up your income and subtract pre-tax contributions such as a traditional 401(k).
- Subtract the standard deduction or your itemized deductions.
- Apply each bracket's rate to the income in that layer, as in the table above.
- Subtract credits.
The paycheck tax calculator does these steps for wage earners and adds Social Security and Medicare. If you have self-employment or investment income without withholding, read quarterly estimated taxes.
Frequently asked questions
What tax bracket am I in?
Find your taxable income, after the standard or itemized deduction, in the table for your filing status. The rate for that row is your marginal bracket.
Are tax brackets based on gross or taxable income?
Taxable income: gross income minus adjustments such as retirement contributions and minus the standard or itemized deduction.
Did the tax brackets change for 2026?
The rates stayed the same, and the 2025 tax law made them permanent. The income thresholds rose with inflation, as they do every year.
What is the highest tax bracket in 2026?
37%, for taxable income over $640,600 for single filers and over $768,700 for married couples filing jointly.
Do state taxes use the same brackets?
No. Each state sets its own rules; several have no wage income tax, some use a flat rate and others have their own brackets.
