Each year, the IRS adjusts federal income tax brackets for inflation, and 2026 is no exception. While the seven tax rates themselves remain unchanged at 10%, 12%, 22%, 24%, 32%, 35%, and 37%, the income ranges for each bracket have increased to reflect inflation.
Understanding how tax brackets work is one of the best ways to plan ahead and avoid surprises when you file. Here’s what you need to know about how your income is taxed in 2026.
How Tax Brackets Work
Federal income tax in the U.S. is progressive. That means you don’t pay one flat rate on your entire income. Instead, your income is divided into portions, and each portion is taxed at a different rate.
For example, if your taxable income is $50,000 as a single filer, the first portion is taxed at 10%, the next portion at 12%, and the remaining amount at 22%. Your marginal tax rate is the highest rate applied to any portion of your income, while your effective tax rate is the average rate you actually pay overall.
This distinction is important because being “in” a higher tax bracket does not mean all your income is taxed at that rate.
2026 Federal Income Tax Brackets
Below are the taxable income ranges for each filing status in 2026.
Single Filers:
- 10% on income from $0 to $12,400
- 12% on $12,401 to $50,400
- 22% on $50,401 to $105,700
- 24% on $105,701 to $201,775
- 32% on $201,776 to $256,225
- 35% on $256,226 to $640,600
- 37% on $640,601 and above
Married Filing Jointly:
- 10% on income from $0 to $24,800
- 12% on $24,801 to $100,800
- 22% on $100,801 to $211,400
- 24% on $211,401 to $403,550
- 32% on $403,551 to $512,450
- 35% on $512,451 to $768,700
- 37% on $768,701 and above
Head of Household:
- 10% on income from $0 to $17,700
- 12% on $17,701 to $67,450
- 22% on $67,451 to $105,700
- 24% on $105,701 to $201,775
- 32% on $201,776 to $256,200
- 35% on $256,201 to $640,600
- 37% on $640,601 and above
The top marginal tax rate of 37% applies to taxable income above $640,600 for single filers and $768,700 for married couples filing jointly.
Why This Matters for You
Knowing where your income falls within the tax brackets helps you make smarter financial decisions throughout the year. It can guide how much you set aside for taxes, whether it makes sense to increase retirement contributions, or if additional deductions could lower your taxable income.
For self-employed individuals and business owners, understanding the brackets is especially helpful for quarterly tax planning and cash flow management. It also allows for more productive conversations with your tax professional when discussing strategies to reduce taxable income legally.
The more clearly you understand how your income is taxed, the easier it becomes to plan ahead, minimize surprises, and use smart tax strategies to your advantage in 2026 and beyond.
