The U.S. federal income tax system uses seven marginal tax brackets ranging from 10% to 37%. These brackets are adjusted annually for inflation. Understanding how they work is essential for tax planning, retirement contributions, and estimating your take-home pay.
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2026 Federal Income Tax Brackets
The IRS adjusts tax brackets each year based on inflation. Below are the 2026 federal income tax brackets for each filing status.
Single Filers
| Tax Rate | Taxable Income Range | Tax Owed |
|---|---|---|
| 10% | $0 – $11,925 | 10% of taxable income |
| 12% | $11,926 – $48,475 | $1,192.50 + 12% of amount over $11,925 |
| 22% | $48,476 – $103,350 | $5,578.50 + 22% of amount over $48,475 |
| 24% | $103,351 – $197,300 | $17,651.00 + 24% of amount over $103,350 |
| 32% | $197,301 – $250,525 | $40,199.00 + 32% of amount over $197,300 |
| 35% | $250,526 – $626,350 | $57,231.00 + 35% of amount over $250,525 |
| 37% | $626,351+ | $188,769.75 + 37% of amount over $626,350 |
Married Filing Jointly
| Tax Rate | Taxable Income Range | Tax Owed |
|---|---|---|
| 10% | $0 – $23,850 | 10% of taxable income |
| 12% | $23,851 – $96,950 | $2,385.00 + 12% of amount over $23,850 |
| 22% | $96,951 – $206,700 | $11,157.00 + 22% of amount over $96,950 |
| 24% | $206,701 – $394,600 | $35,302.00 + 24% of amount over $206,700 |
| 32% | $394,601 – $501,050 | $80,398.00 + 32% of amount over $394,600 |
| 35% | $501,051 – $752,800 | $114,462.00 + 35% of amount over $501,050 |
| 37% | $752,801+ | $202,574.50 + 37% of amount over $752,800 |
Married Filing Separately
| Tax Rate | Taxable Income Range | Tax Owed |
|---|---|---|
| 10% | $0 – $11,925 | 10% of taxable income |
| 12% | $11,926 – $48,475 | $1,192.50 + 12% of amount over $11,925 |
| 22% | $48,476 – $103,350 | $5,578.50 + 22% of amount over $48,475 |
| 24% | $103,351 – $197,300 | $17,651.00 + 24% of amount over $103,350 |
| 32% | $197,301 – $250,525 | $40,199.00 + 32% of amount over $197,300 |
| 35% | $250,526 – $376,400 | $57,231.00 + 35% of amount over $250,525 |
| 37% | $376,401+ | $101,287.25 + 37% of amount over $376,400 |
Head of Household
| Tax Rate | Taxable Income Range | Tax Owed |
|---|---|---|
| 10% | $0 – $17,000 | 10% of taxable income |
| 12% | $17,001 – $64,850 | $1,700.00 + 12% of amount over $17,000 |
| 22% | $64,851 – $103,350 | $7,442.00 + 22% of amount over $64,850 |
| 24% | $103,351 – $197,300 | $15,912.00 + 24% of amount over $103,350 |
| 32% | $197,301 – $250,500 | $38,460.00 + 32% of amount over $197,300 |
| 35% | $250,501 – $626,350 | $55,484.00 + 35% of amount over $250,500 |
| 37% | $626,351+ | $186,981.50 + 37% of amount over $626,350 |
2026 Standard Deduction
The standard deduction reduces your taxable income before the brackets apply. Most taxpayers take the standard deduction rather than itemizing.
| Filing Status | 2026 Standard Deduction |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Married Filing Separately | $15,000 |
| Head of Household | $22,500 |
| Additional for age 65+ or blind (single) | +$2,000 |
| Additional for age 65+ or blind (married) | +$1,600 |
How Marginal Tax Brackets Work
A common misconception is that moving into a higher bracket means all of your income is taxed at that rate. This is not how it works. The U.S. uses a marginal tax system, meaning each portion of your income is taxed at the rate for that bracket only.
Example: Single Filer Earning $85,000
Here’s how a single filer earning $85,000 in taxable income would be taxed in 2026:
| Bracket | Income in Bracket | Tax Rate | Tax |
|---|---|---|---|
| 10% | $11,925 | 10% | $1,192.50 |
| 12% | $36,550 ($48,475 - $11,925) | 12% | $4,386.00 |
| 22% | $36,525 ($85,000 - $48,475) | 22% | $8,035.50 |
| Total | $85,000 | $13,614.00 |
The effective tax rate is $13,614 ÷ $85,000 = 16.0%, much lower than the 22% marginal rate.
Marginal vs. Effective Tax Rate
- Marginal tax rate: The rate applied to your last dollar of income (your highest bracket). In the example above, it’s 22%.
- Effective tax rate: The actual percentage of your total income paid in taxes. It’s always lower than your marginal rate because of the graduated bracket system.
Understanding the difference is critical for decisions like whether to contribute more to a 401(k) or whether a raise will actually push you into a meaningfully higher tax situation (it won’t as dramatically as many people think).
Capital Gains Tax Rates
Investment income is taxed differently from ordinary income. Long-term capital gains (assets held over one year) receive preferential rates:
| Filing Status | 0% Rate | 15% Rate | 20% Rate |
|---|---|---|---|
| Single | Up to $48,350 | $48,351 – $533,400 | Over $533,400 |
| Married Filing Jointly | Up to $96,700 | $96,701 – $600,050 | Over $600,050 |
| Head of Household | Up to $64,750 | $64,751 – $566,700 | Over $566,700 |
Short-term capital gains (assets held one year or less) are taxed as ordinary income at your marginal rate.
High earners may also owe the 3.8% Net Investment Income Tax (NIIT) on investment income if their modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly).
How to Lower Your Tax Bracket
Several strategies can reduce your taxable income and move you into a lower bracket:
- Maximize retirement contributions — 401(k) contributions up to $23,500 in 2026 reduce your taxable income dollar-for-dollar.
- Contribute to an HSA — Health Savings Account contributions ($4,300 individual, $8,550 family in 2026) are tax-deductible.
- Itemize deductions — If your mortgage interest, state taxes, and charitable giving exceed the standard deduction, itemizing may save you more.
- Harvest tax losses — Sell losing investments to offset capital gains and reduce taxable income by up to $3,000 per year.
- Use tax-advantaged accounts — Traditional IRA contributions may be deductible depending on your income and employer plan coverage.
Historical Tax Bracket Changes
Federal tax rates have changed significantly over the decades:
| Year | Lowest Rate | Highest Rate | Number of Brackets |
|---|---|---|---|
| 1960 | 20% | 91% | 24 |
| 1970 | 14% | 71.75% | 25 |
| 1980 | 14% | 70% | 16 |
| 1988 | 15% | 28% | 2 |
| 2000 | 15% | 39.6% | 5 |
| 2010 | 10% | 35% | 6 |
| 2018 | 10% | 37% | 7 |
| 2026 | 10% | 37% | 7 |
The Tax Cuts and Jobs Act (TCJA) of 2017 reduced rates and expanded brackets. Key provisions were extended through 2025, with adjustments continuing into 2026.
Tax Brackets by State
In addition to federal income tax, most states impose their own income tax. See our guide to state income tax rates for a complete breakdown, or check out the states with no income tax.
Related: Capital Gains Tax Rates | Average Income by State | Income Percentile Calculator
