US Income Tax 2026: Brackets, Rates & How to File
What are the 2026 US federal income tax brackets? See all 7 rates (10–37%), standard deduction of $16,100/$32,200, FICA taxes, capital gains rates, and key OBBBA changes. Updated for 2026.
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Progressive Tax System Explained
The US taxes income in layers. Each layer (bracket) has its own rate. You pay 10% on the first portion of your income, 12% on the next portion, and so on. Your top bracket is your marginal tax rate. Your effective tax rate - the average across all brackets - is always lower. For example, a single filer with $65,000 in taxable income has a 22% marginal rate but pays roughly 13.9% effective rate. Filing status determines your bracket thresholds: Single, Married Filing Jointly, Head of Household, or Married Filing Separately.
7 federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%
You pay higher rates only on income above each threshold
Filing status determines your bracket thresholds
Marginal rate is your highest bracket; effective rate is your average
OBBBA made these rates permanent starting 2026
2026 Federal Income Tax Brackets (Single Filers)
| Taxable Income | Tax Rate | How It Works |
|---|---|---|
| $0 – $12,400 | 10% | 10% on all income in this range |
| $12,401 – $50,400 | 12% | 12% on income above $12,400 |
| $50,401 – $105,700 | 22% | 22% on income above $50,400 |
| $105,701 – $201,775 | 24% | 24% on income above $105,700 |
| $201,776 – $256,225 | 32% | 32% on income above $201,775 |
| $256,226 – $640,600 | 35% | 35% on income above $256,225 |
| Above $640,601 | 37% | 37% on income above $640,600 |
These brackets apply to single filers. For married filing jointly, thresholds are roughly doubled. The OBBBA gave an extra 4% inflation boost to the 10% and 12% brackets and 2.3% to higher brackets for 2026.
2026 Federal Income Tax Brackets (Married Filing Jointly)
| Taxable Income | Tax Rate | How It Works |
|---|---|---|
| $0 – $24,800 | 10% | 10% on all income in this range |
| $24,801 – $100,800 | 12% | 12% on income above $24,800 |
| $100,801 – $211,400 | 22% | 22% on income above $100,800 |
| $211,401 – $403,550 | 24% | 24% on income above $211,400 |
| $403,551 – $512,450 | 32% | 32% on income above $403,550 |
| $512,451 – $768,700 | 35% | 35% on income above $512,450 |
| Above $768,701 | 37% | 37% on income above $768,700 |
These brackets apply to married couples filing jointly. Head of Household has separate thresholds between single and joint filers.
Standard Deduction 2026
Single / Married Filing Jointly
Key Tax Deductions and Credits for 2026
Child Tax Credit (CTC)
Up to $2,200 per qualifying child under 17. The refundable portion is $1,700. Phases out at $200,000 MAGI for single filers and $400,000 for joint filers. The OBBBA made this credit permanent and indexed to inflation starting 2026.
Earned Income Tax Credit (EITC)
Maximum credit of $8,231 for families with 3 or more children. $7,316 for 2 children, $4,427 for 1 child, and $664 with no children. Income limits apply based on filing status and number of children. Fully refundable - you can get a refund even if you owe no tax.
SALT Deduction (State and Local Taxes)
The OBBBA raised the cap from $10,000 to $40,400 for 2026. Includes state income tax, property tax, and sales tax. Phases out for incomes above $505,000 (30 cents per dollar over the threshold). Requires itemizing. Available through 2029, then reverts to $10,000.
No Tax on Tips and Overtime (2025–2028)
Workers can deduct up to $25,000 in tip income and $12,500 in overtime pay. These deductions phase out at $150,000 MAGI ($300,000 joint). Only available for W-2 employees. Both deductions are temporary through 2028. Reported on the new Schedule 1-A.
Social Security and Medicare Taxes (FICA)
Employee and Employer Payroll Tax Rates
Employees pay 6.2% Social Security tax on wages up to $184,500 and 1.45% Medicare tax on all wages. The employer matches both amounts. Total FICA is 15.3% split equally. Self-employed workers pay the full 15.3% but can deduct half. An additional 0.9% Medicare surtax applies to wages above $200,000 for single filers ($250,000 joint) - the employer does not match this portion. There is no wage cap for Medicare tax.
FICA Tax Breakdown 2026
| Tax Type | Employee Rate | Employer Rate | Wage Base |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | First $184,500 |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare | 0.9% | None | Over $200,000 (single) |
| Total (standard) | 7.65% | 7.65% | - |
The Social Security wage base increased from $176,100 in 2025 to $184,500 in 2026. The maximum employee Social Security tax is $11,439 for 2026. Self-employed pay 15.3% total (12.4% SS + 2.9% Medicare).
Capital Gains Tax Rates 2026
Long-Term vs Short-Term Capital Gains
Assets held longer than one year qualify for long-term capital gains rates of 0%, 15%, or 20%. Assets held one year or less are taxed as ordinary income (up to 37%). High earners may also pay a 3.8% Net Investment Income Tax (NIIT) on top. For 2026, single filers pay 0% on gains if taxable income is $49,450 or less, 15% up to $545,500, and 20% above that. Married filing jointly thresholds are $98,900 and $613,700.
0% rate: single filers up to $49,450, joint up to $98,900
15% rate: single filers $49,451–$545,500, joint $98,901–$613,700
20% rate: above $545,500 (single), above $613,700 (joint)
Short-term gains taxed at ordinary income rates (10–37%)
3.8% NIIT surtax on investment income for high earners
How to File Your US Tax Return
Filing Deadlines and Methods
Most taxpayers file Form 1040 by April 15 each year. For 2025 tax returns, the deadline is April 15, 2026. You can request a 6-month extension using Form 4868, but you must still pay any taxes owed by April 15. Filing options include IRS Free File (income under $89,000), tax software, a tax professional, or paper forms. The IRS encourages e-filing and direct deposit for faster refunds. Most refunds arrive within 21 days of e-filing.
April 15, 2026: deadline for 2025 tax returns
Form 4868 gives a 6-month extension to file (not to pay)
IRS Free File available for AGI of $89,000 or less
E-file with direct deposit for fastest refund (about 21 days)
Self-employed must pay quarterly estimated taxes
2026 Key Tax Changes Under the OBBBA
TCJA Rates Made Permanent
The 7 income tax brackets (10%–37%) from the Tax Cuts and Jobs Act are now permanent. Without the OBBBA, rates would have reverted to pre-2018 levels with a top rate of 39.6%. The lower two brackets received an extra 4% inflation adjustment for 2026.
SALT Cap Raised to $40,400
The state and local tax deduction cap increased from $10,000 to $40,400 for 2026 (up from $40,000 in 2025 with 1% annual increase). Phases out for incomes above $505,000. Reverts to $10,000 after 2029. Major relief for taxpayers in high-tax states.
No Tax on Tips and Overtime
New deductions let eligible W-2 workers exclude up to $25,000 in tip income and $12,500 in overtime pay from federal taxes. Phases out at $150,000 MAGI ($300,000 joint). Reported on the new Schedule 1-A. Temporary through 2028.
Senior Deduction $6,000
Taxpayers age 65 and older can take an additional above-the-line deduction of up to $6,000 ($12,000 for joint filers). Available whether you itemize or take the standard deduction. Phases out above $75,000 (single) or $150,000 (joint). Temporary for 2025–2028.
Child Tax Credit Increased
The CTC rose to $2,200 per child (from $2,000). Now indexed to inflation going forward. Refundable portion stays at $1,700. Phaseout thresholds remain at $200,000 (single) and $400,000 (joint).
Social Security Wage Base Rises
The Social Security wage base increased to $184,500 for 2026, up from $176,100 in 2025. Maximum employee Social Security tax is now $11,439. Medicare tax and the 0.9% Additional Medicare Tax remain unchanged.
Frequently Asked Questions
What are the federal income tax brackets for 2026?
The US has 7 tax brackets for 2026: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 10% rate applies to income up to $12,400, 12% from $12,401 to $50,400, 22% from $50,401 to $105,700, 24% from $105,701 to $201,775, 32% from $201,776 to $256,225, 35% from $256,226 to $640,600, and 37% on income above $640,601.
What is the standard deduction for 2026?
The 2026 standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. Seniors 65+ get an additional $2,050 (single) or $1,650 (married). The OBBBA also created a temporary $6,000 senior deduction for 2025–2028.
How much is the FICA tax in 2026?
Employees pay 7.65% in FICA taxes: 6.2% Social Security on wages up to $184,500 and 1.45% Medicare on all wages. Employers match this amount. Self-employed pay the full 15.3%. An extra 0.9% Medicare surtax applies to wages above $200,000 for single filers.
What is the capital gains tax rate for 2026?
Long-term capital gains (assets held over 1 year) are taxed at 0%, 15%, or 20% based on income. Single filers pay 0% on gains with taxable income up to $49,450, 15% up to $545,500, and 20% above that. Short-term gains are taxed as ordinary income at rates up to 37%. A 3.8% NIIT surtax may also apply.
When is the tax filing deadline in 2026?
The deadline to file your 2025 federal tax return is April 15, 2026. You can request a 6-month extension with Form 4868, which moves the filing deadline to October 15, 2026. However, any taxes owed are still due by April 15. Self-employed taxpayers also owe quarterly estimated payments.
What is the SALT deduction cap for 2026?
The SALT (State and Local Tax) deduction cap is $40,400 for 2026 - up from $40,000 in 2025. It includes state income tax, property tax, and sales tax. The cap phases out for incomes above $505,000 MAGI. It will revert to $10,000 after 2029.
How does the no tax on tips deduction work?
Eligible W-2 workers can deduct up to $25,000 in tip income from their federal taxes for 2025–2028. The deduction phases out at $150,000 MAGI ($300,000 for joint filers). It is reported on the new Schedule 1-A. Self-employed workers and business owners are not eligible for this deduction.
Calculate Your US Federal Income Tax
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