The IRS has released the new income limits for federal income tax brackets for the tax year 2026.
The brackets you fall into determine how much you owe at tax time. For 2025 returns, which will be filed in 2026, there are seven tax rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
Those tax rates will remain the same for 2026 returns (filed in 2027), but the IRS annually adjusts the income range for each rate to account for inflation.
Depending on how much you make and your filing status, parts of your earnings will likely fall under different tax rates.
Here are the income ranges for tax brackets for tax year 2026, as well as changes to the standard deduction.
2025 tax brackets (for returns filed in 2026)
Thanks to the Tax Cuts and Jobs Act of 2017 (TCJA), the brackets for tax year 2025 will remain the same as they were in 2024. However, the IRS increased the income thresholds for each tier by 2.8%.
Tax Rate Single Married filing jointly 10%$11,925 or less$23,850 or less12%$11,926 to $48,475$23,851 to $96,95022%$48,476 to $103,350$96,951 to $206,70024%$103,351 to $197,300$206,701 to $394,60032%$197,301 to $250,525$394,601 to $501,05035%$250,526 to $626,350$501,051 to $751,60037%Over $626,350Over $751,600
2026 tax brackets (for returns filed in 2027)
There are once again seven brackets for tax year 2026. The maximum 37% rate only applies to individual filers earning over 640,600 and married couples filing jointly who made over $768,700 combined.
Tax Rate Single Married filing jointly 10%$12,400 or less$24,800 or less 12%$12,401 to $50,400$24,801 to $100,80022%$50,401 to $105,700$100,801 to $211,40024%$105,701 to $201,775$211,401 to $403,55032%$201,776 to $256,225$403,551 to $512,45035%$256,226 to $640,600$512,451 to $768,70037%Over $640,600Over $768,700
The 2026 standard deduction
The IRS also announced updates to standard deductions for tax year 2026.
Standard deduction for tax year 2024 (Filing in 2025) Standard deduction for tax year 2025 (Filing in 2026) Standard deduction for tax year 2026 (Filing in 2027) Single$14,600$15,750$16,100Married filing jointly$29,200$31,500$32,200Married filing separately$14,600$15,750$16,100Heads of household$21,900$23,625$24,150
The One Big Beautiful Bill Act extended the 2017 Tax Cuts and Jobs Act, which doubled the standard deduction and removed the need for many Americans to itemize. Previously scheduled to expire in 2025, the super-sized deduction has now been extended to at least 2028.
Additional standard deduction for seniors
Taxpayers who are over 65 or visually impaired can claim an additional standard deduction of $2,000 for single filers or $1,600 per qualifying individual for married filers.
In a provision that expires after 2028, the OBBB boosted the senior deduction by an additional $6,000, whether you itemize or use the standard deduction.
It phases out at a 6% rate for single taxpayers with a modified adjusted gross income (AGI) over $75,000 and married taxpayers with an AGI over $150,000. It’s fully phased out for single taxpayers making more than $175,000 and married taxpayers earning $250,000.
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Other IRS updates for tax year 2026
Alternative Minimum Tax Exemption. The exemption amount for unmarried individuals is now $90,100 and begins to phase out at $500,000. For married couples filing jointly, the amount is $140,200, with the exemption beginning to phase out at $1 million.
Adoption credits. The maximum credit for qualified adoption expenses in 2026 is $17,670, up from $17,280 for 2025. (For tax year 2026, the amount of credit that may be refundable is $5,120.)
Annual exclusion for gifts. The annual exclusion for gifts in 2026 remains $19,000. (However, the annual exclusion for gifts to a spouse who is not a U.S. citizen increased to $194,000.)
Earned Income Tax Credits. The maximum Earned Income Tax Credit (EITC) for tax year 2026 is $8,231 for taxpayers with three or more qualifying children, up from $8,046 in 2025.
Employer-provided childcare tax credit. The OBBB significantly increased the maximum amount of employer-provided childcare tax credit from $150,000 in 2025 to $500,000 in 2026 (up to $600,000 if the employer is an eligible small business).
Estate tax credit. The exclusion rate for estate tax in 2026 is $15 million, up from $13.9 million for estates of individuals who died in 2025.
Health Flexible Spending Accounts (HFSA). Beginning in 2026, the dollar limit for voluntary employee salary reductions for contributions to health flexible spending arrangements (HFSAs) increases to $3,400, up from $3,300 in 2025. For cafeteria plans that permit unused amounts to be carried over, the maximum carryover amount is $680, an increase of $20 from 2025.
Foreign Earned Income Exclusion (FEIE). The foreign earned income exclusion for tax year 2026 is $132,900, up from $130,000 for tax year 2025.
Medical Savings Accounts. For tax year 2026, participants who have self-only coverage in a Medical Savings Account must have a plan with an annual deductible of no less than $2,900 but no more than $4,400. For self-only coverage, the maximum out-of-pocket expense amount is $5,850. For family coverage, the annual deductible cannot be less than $5,850 or more than $8,750. For family coverage, the out-of-pocket expense limit is $10,700.
Qualified transportation fringe benefit. The monthly limit for the qualified transportation fringe benefit and the monthly limitation for qualified parking are $340.
What is my filing status?
Your filing status determines your annual tax liability, as well as your filing requirements, standard deduction and eligibility for certain tax credits.
Single: You are unmarried, divorced or legally separated as of the last day of the year and don’t have a dependent or other person who qualifies you for any other filing status.
Married filing jointly: You are married and able to file a joint return with your spouse or your spouse died during the tax year and you did not remarry.
Married filing separately: You are married but have chosen to file separate returns.
Head of household: You are an unmarried individual who is not claimed on someone else’s return and who pays for over half of the care of at least one dependent.
Surviving spouse: Your spouse died during the previous tax year. To claim this status, you must have been eligible to file a joint tax return before their death and have at least one dependent child.
Your marital status on December 31 determines whether you are considered single or married for that year.
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How can I lower my taxable income?
There are several strategies to lower your tax rate that don’t involve a pay cut. Some require itemizing, however. The standard deduction in 2025 is $15,750 for single filers and $31,500 for married couples.
1. Claim tax credits
Tax credits reduce the amount you owe, providing a dollar-for-dollar decrease in your tax liability. If you owe $2,000 in taxes and qualify for a $500 tax credit, for example, your tax liability is reduced to $1,500.
You can learn about tax credits you may be eligible for on the IRS website, including:
The Earned Income Tax Credit: If you earned less than $61,555 (or $68,675 if married and filing jointly), you can earn up to $8,046 based on your income and family size
Child Tax Credit: Worth up to $2,200 per qualifying dependent child, depending on your modified adjusted gross income.
Child and Dependent Care Tax Credit: Claim up to 35% of daycare, dependent care and related expenses, up to $3,000 (or up to $6,000 for two or more children).
American Opportunity Tax Credit: If you earn $80,000 or less ($160,000 or less if married filing jointly), you can claim up to $2,500 for qualified tuition costs, school fees and course materials.
2. Deduct student loan interest
While tax credits directly reduce your tax bill, tax deductions lower your taxable income by letting you subtract certain expenses.
If you, your spouse, or a dependent has federal or , for example, you can deduct up to $2,500 in student loan interest each year. For tax year 2025, this write-off begins to phase out if your modified adjusted gross income hits $85,000, however, and disappears entirely at $100,000.
If you’re married and filing jointly, the phaseout starts at $170,000 and disappears if you earn $200,000 or more.
3. Max out your retirement accounts
You can also claim deductions for contributions to qualifying pre-tax retirement accounts like an employer-sponsored 401(k) or traditional IRA.
With pre-tax contributions, you’re taking less out of your paycheck now. However, because you didn’t pay taxes on the money beforehand, you’ll pay income tax on it when you start withdrawing.
4. Contribute to a Health Savings Account
If you have a high-deductible healthcare plan, a Health Savings Account (HSA) allows you to save for upcoming medical expenses. Contributions are tax-free (or tax-deductible if self-funded) and the balance can grow tax-free through investments. Withdrawals are also tax-free if used for eligible expenses—like deductibles or copays, prescriptions, medical devices and even birth control.
Some companies also offer flexible spending accounts (FSA), which lower your taxable income by allowing pre-tax contributions. FSAs don’t let you invest and only a small portion of funds can roll over to the following year.
5. Sell losing stocks
If you own stocks that performed badly this year, you can use your losses to offset the taxes you would pay on other investment gains — a process called tax-loss harvesting.
If you have no capital gains this year, your losses can offset up to $3,000 of ordinary income — anything beyond that can carry over and be used to lower taxes in the future.
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Tax bracket FAQs
How do tax brackets work?
Tax brackets are the various tiers at which your income is taxed. You only pay a higher rate on the portion of your income that falls into that bracket, not your entire paycheck. For example, an individual filer earning $40,000 in 2025 is taxed 10% on the first $11,925 of income, while the next $28,075 would be taxed at 12%.
How do I calculate my tax bracket?
To calculate your tax bracket, determine your total taxable income after deductions. Then, match that income to the corresponding range in the tax bracket chart for your filing status to see the rate that applies to each portion of your income. Your taxable income will likely span multiple brackets depending on your earnings.
Does a Roth IRA put you in a different tax bracket?
A Roth IRA doesn’t change your tax bracket because contributions are made with after-tax dollars, meaning you’ve already paid taxes on the money.
What is the highest tax bracket?
The highest tax bracket is currently 37%. For tax year 2025, only single filers earning at least $626,350 or married couples filing jointly earning at least $751,600 will pay that rate on any portion of their income. For tax year 2026, the maximum rate applies only to individual filers earning over $640,600 and to married couples filing jointly who earn over $768,700 combined.
What is the standard deduction for 2025?
For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction is $15,750. For married couples filing jointly, it’s $31,500. For heads of households, it’s $23,625.
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