In 2026, the IRS will apply new tax brackets, standard deductions, and OBBBA changes. The new tax thresholds may change your tax bill by hundreds or thousands of dollars, depending on your filing status and income level.
Key Figures for US Federal Income Tax 2026
- Seven tax brackets for single filers: 10% ≤ $12,400; 12% $12,401–$50,400; 22% $50,401–$106,750; 24% $106,751–$197,550; 32% $197,551–$250,550; 35% $250,551–$626,350; 37% > $626,350.
- Married filing jointly thresholds roughly double singles (e.g., 10% ≤ $24,800; 37% > $1,252,700).
- Standard deduction for 2026: $16,100 single, $32,200 married filing jointly, $24,150 head of household.
- Additional standard deduction for seniors 65+: $2,050 single, $1,650 per spouse for joint filers.
- OBBBA senior deduction: $6,000 single, $12,000 joint if AGI under $75,000/$150,000, valid through 2028.
- SALT deduction cap raised from $10,000 to $40,000, phasing out for high earners, reverts in 2030.
- Child tax credit increase included in OBBBA – $2,500 per child under 17.
- Estate tax exemption set permanently at $15 million per person.
- Capital gains tax brackets: 0% up to ~$48,350 single; 15% $48,351–$533,400; 20% over $533,400.
- Alternative Minimum Tax (AMT) exemption: $90,100 single, $140,200 joint.
Federal Income Tax Brackets and Marginal Rates
For 2026, the IRS has set seven tax brackets for single filers, starting at 10% for income up to $12,400. The brackets then climb through 12%, 22%, 24%, 32%, 35%, and top out at 37% for income above $626,350. Married couples filing jointly see roughly doubled thresholds, so the 10% bracket covers income up to $24,800 and the top 37% bracket begins at $1,252,700.
Here’s a quick snapshot of the single‑filers’ schedule:
- 10%: Up to $12,400
- 12%: $12,401 to $50,400
- 22%: $50,401 to $106,750
- 24%: $106,751 to $197,550
- 32%: $197,551 to $250,550
- 35%: $250,551 to $626,350
- 37%: Over $626,350
Married filing jointly brackets are approximately double these amounts, with the 24% range ending at $395,100 and the 32% range ending at $501,100.
Remember, your income isn’t taxed entirely at the highest bracket you reach. A single earner making $60,000, for instance, pays 10% on the first $12,400, 12% on the next $38,000 and 22% on the remaining $9,600. That marginal‑rate structure keeps the effective tax rate lower than the headline 22% figure.
Standard Deductions and Senior Add‑Ons
The 2026 standard deduction jumps to $16,100 for single filers – a $300 increase from 2025. Married couples filing jointly get $32,200, while heads of household receive $24,150. Those numbers matter because they shrink your taxable income before any bracket math begins.
For taxpayers 65 or older, the IRS adds $2,050 per senior to the standard deduction. If a married couple both qualify, they pick up $1,650 for each spouse, totalling an extra $3,300.
OBBBA layers a fresh senior deduction on top of the existing ones. Single seniors can knock $6,000 off their adjusted gross income (AGI) if they earn under $75,000. Couples can claim $12,000 if their joint AGI stays below $150,000. The credit runs through 2028, offering a temporary boost for retirees still on the work‑force.
One Big Beautiful Bill Act (OBBBA) Highlights
OBBBA isn’t just about seniors. The act lifts the child tax credit from $2,000 to $2,500 per qualifying child under 17, with a phase‑out starting at $200,000 for single filers and $400,000 for joint filers. That means a family of three could see an extra $1,500 in credit dollars.
Another OBBBA tweak is the SALT (state and local tax) deduction cap. The old $10,000 ceiling jumps to $40,000 for 2026, but the increase begins to taper for AGI over $500,000 and disappears entirely for incomes above $1 million. The cap reverts to $10,000 in 2030 unless Congress acts again.
Finally, the act freezes the estate‑tax exemption at $15 million per person, eliminating the annual inflation adjustments that previously nudged the exemption upward.
Capital Gains and Qualified Dividends
Long‑term capital gains keep their three‑tier structure. For single filers, the 0% rate applies up to roughly $48,350 of net gains. The 15% bracket runs from $48,351 to $533,400, and anything above that's taxed at 20%.
Married filing jointly thresholds are essentially doubled: 0% up to $96,700, 15% up to $1,066,800, and 20% beyond that. Short‑term gains, however, sit squarely in the ordinary‑income brackets, so a $30,000 short‑term gain for a single filer in the 22% bracket would add $6,600 to the tax bill.
Alternative Minimum Tax (AMT) Adjustments
The AMT exemption rises to $90,100 for single taxpayers and $140,200 for joint filers.
The phase‑out begins at $578,150 (single) and $1,156,300 (joint). If your AMT income lands between those numbers, you lose $0.25 of exemption for every $1 of excess.
Because the AMT exemption grew faster than inflation, fewer middle‑class families are likely to hit the AMT this year. Still, high‑income earners with large preference items – like incentive‑stock‑options – should run the AMT calculator before finalizing their return.
Regional Differences and State Impacts
States that still allow a full SALT deduction will see taxpayers benefit from the $40,000 cap, especially in high‑tax states like California, New York and New Jersey. A Californian couple with $30,000 in state income tax and $10,000 in property tax can now deduct the full $40,000, shaving roughly $9,600 off their federal tax (assuming they’re in the 24% bracket).
In contrast, residents of low‑tax states such as Texas or Florida won’t feel the SALT change much because they rarely hit the old $10,000 ceiling.
Forecast: What 2027 Might Hold
Analysts expect the IRS to index brackets and deductions to inflation again for 2027, which could push the 10% single‑filers’ ceiling to about $12,700 and the standard deduction to $16,400. If OBBBA extensions happen, the senior deduction could stay at $6,000, and the SALT cap might remain at $40,000.
Keep an eye on the Senate budget talks – any change to the estate‑tax exemption or the child‑tax credit would ripple through the next year’s numbers.
Quick Comparison Table
| Item | 2025 | 2026 | Notes |
|---|---|---|---|
| Single standard deduction | $15,800 | $16,100 | +$300 inflation adjustment |
| Married joint standard deduction | $31,600 | $32,200 | +$600 |
| SALT cap | $10,000 | $40,000 | OBBBA increase, phased out >$500k AGI |
| Senior additional deduction | $1,650 | $2,050 | +$400 per senior |
| OBBBA senior deduction | None | $6,000 (single) / $12,000 (joint) | AGI limits $75k/$150k |
| Child tax credit | $2,000 | $2,500 | +$500 per child |
| Estate‑tax exemption | $12.06 million | $15 million (permanent) | Frozen by OBBBA |
| Capital gains 0% threshold (single) | $44,625 | $48,350 | +~8% |
| AMT exemption (single) | $88,300 | $90,100 | +~2% |
Those numbers give a snapshot of how the 2026 tax landscape stacks up against the prior year. Use them to double‑check your own calculations or to spot where a deduction might bite the most.
Tax year 2026 keeps the seven federal tax brackets many know, with inflation‑adjusted thresholds and higher standard deductions that ease taxable income. OBBBA’s provisions bring new deductions and extra credits, especially for seniors and families with kids, while the temporary SALT boost helps high‑tax‑state residents. Watch the 2027 index for the next round of tweaks.
