2026 Tax Brackets: Official IRS Rates, Deductions & What Changed
OFFICIAL IRS DATA — 2026
π Rev. Proc. 2025-32
π΅ Std. Deduction $16,100/$32,200
π️ OBBBA Made Permanent
2026 Tax Brackets: Official IRS Rates, Deductions & What Changed
The IRS released the official 2026 inflation adjustments in Revenue Procedure 2025-32, the first full tax year under the One Big Beautiful Bill Act. The seven rates you already know aren't going anywhere — what changed is where they kick in, and a handful of genuinely new deductions worth planning around before you file in 2027.
Last updated: July 9, 2026
By: Gnz, SmartFinanceHub
~13 min read
Primary source: IRS.gov, Revenue Procedure 2025-32
These figures apply to income earned during calendar year 2026 and are reported on returns filed in early 2027 — not the return you're filing this year for 2025 income.
π 2026 Tax Year — Vitals
$16,100
Std. Deduction
Single filers
$32,200
Std. Deduction
Married filing jointly
37%
Top Rate
Above $640,600 single
$40,000
New SALT Cap
Up from $10,000
$6,000
New Senior Deduction
Age 65+, income-capped
$15M
Estate Tax Exclusion
Up from $13.99M
The headline: rates didn't change, but the One Big Beautiful Bill Act permanently locked in the current seven-bracket structure that was otherwise set to expire, while adding several genuinely new deductions — for seniors, overtime workers, and higher-SALT-state homeowners — that didn't exist in prior years.
π What's In This Guide
βΉ️
How this guide is built: every figure below comes directly from IRS Revenue Procedure 2025-32 and the official October 2025 IRS inflation-adjustment release. This is general tax information, not individualized advice — consult a licensed CPA or tax preparer about your specific return.
1. The 2026 Tax Brackets
The federal income tax retains the same seven marginal rates for 2026: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. What moved is where each rate kicks in. The IRS gave the bottom two brackets a larger inflation adjustment (about 4%) than the higher brackets (about 2.3%), a design meant to provide slightly more relief to lower- and middle-income filers.
| Rate | Single Filers | Married Filing Jointly |
|---|---|---|
| 37% | Over $640,600 | Over $768,700 |
| 10%–35% | Adjusted for inflation vs. 2025 | Adjusted for inflation vs. 2025 |
The IRS has published the complete threshold table for every bracket and filing status at IRS.gov. Remember that brackets are marginal: only the portion of income within each tier is taxed at that tier's rate, not your entire income.
2. Standard Deduction by Filing Status
| Filing Status | 2026 Standard Deduction | vs. 2025 |
|---|---|---|
| Single / Married filing separately | $16,100 | +$350 |
| Married filing jointly | $32,200 | +$700 |
| Head of household | $24,150 | +$525 |
3. What the OBBBA Made Permanent
π️
Before the One Big Beautiful Bill Act was signed on July 4, 2025, the current seven-rate structure from the 2017 Tax Cuts and Jobs Act was scheduled to expire at the end of 2025, with the top rate set to revert to 39.6%. The OBBBA cancelled that scheduled reversion and made the current bracket structure permanent, along with permanently eliminating the overall limitation on itemized deductions (while adding a new, narrower limitation specifically for taxpayers in the top 37% bracket).
4. New Deductions Worth Knowing
SALT Cap Raised
$40,000
Up from $10,000; phases out for high earners; reverts to $10,000 in 2030
Senior Deduction
Up to $6,000
Age 65+, MAGI under $75K single/$150K joint, through 2028
Overtime Deduction
Up to $12,500
$25,000 joint; available even without itemizing
Employer Childcare Credit
Up to $500K
$600K for eligible small businesses; up from $150K
Estate Tax Exclusion
$15,000,000
Up from $13,990,000 for 2025 deaths
Adoption Credit
Up to $17,670
Up to $5,120 potentially refundable
5. Other Inflation-Adjusted Numbers
| Item | 2026 Amount |
|---|---|
| Earned Income Tax Credit (3+ children) | $8,231 |
| AMT exemption, single | $90,100 (phases out at $500,000) |
| AMT exemption, joint | $140,200 (phases out at $1,000,000) |
| Annual gift tax exclusion | $19,000 per recipient |
| Foreign earned income exclusion | $132,900 |
| FSA contribution limit | $3,400 |
6. The Thresholds That Didn't Move
Not everything gets an inflation adjustment. The Additional Medicare Tax thresholds ($200,000 single / $250,000 married filing jointly) and the Net Investment Income Tax thresholds at the same levels remain fixed in nominal dollars, unindexed for well over a decade running. In practical terms, their real-world reach quietly expands every year as wages rise with inflation — more taxpayers cross those lines each year without Congress ever voting to lower them.
7. Planning Moves to Consider Now
- Revisit itemizing vs. standard deduction if you're in a high-SALT state — the new $40,000 cap may make itemizing worthwhile again for homeowners who switched to the standard deduction after 2017.
- Check senior deduction eligibility if you or a spouse turns 65 before 2029 and your income is under the MAGI thresholds.
- Track overtime pay separately if you're a nonexempt hourly worker, since the new deduction applies regardless of whether you itemize.
- Review estate planning documents if your estate is near the prior $13.99 million exclusion, given the jump to $15 million.
- Adjust withholding or estimated payments if your income sits near a bracket boundary, since thresholds moved for 2026.
8. Frequently Asked Questions
For tax year 2026, the IRS standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household, per IRS Revenue Procedure 2025-32.
The seven tax rates themselves (10%, 12%, 22%, 24%, 32%, 35%, and 37%) stayed the same, but the income thresholds for each bracket increased for inflation, and the standard deduction rose as well.
The top 37% federal income tax rate applies to taxable income above $640,600 for single filers and above $768,700 for married couples filing jointly in 2026.
The OBBBA, signed July 4, 2025, made the current seven-bracket tax structure permanent, raised the SALT deduction cap to $40,000, added a new senior deduction of up to $6,000, created a new deduction for overtime pay, and significantly raised the estate tax exclusion, among other changes.
The state and local tax deduction cap increased to $40,000 for 2026, up from the previous $10,000 cap, with the higher limit phasing out for high earners and scheduled to revert to $10,000 in 2030.
Yes, taxpayers age 65 and older can claim a deduction of up to $6,000 if their modified adjusted gross income is under $75,000 for single filers or $150,000 for married filing jointly, available whether they itemize or take the standard deduction, through 2028.
✅ Key Takeaways
- The seven federal tax rates are unchanged for 2026, but income thresholds and the standard deduction both rose for inflation.
- The standard deduction is $16,100 (single), $32,200 (married filing jointly), and $24,150 (head of household) for 2026.
- The OBBBA permanently locked in the current bracket structure, cancelling a scheduled reversion to a 39.6% top rate.
- New provisions worth checking: a $40,000 SALT cap, a $6,000 senior deduction, and a new overtime pay deduction.
- Some thresholds, like the Additional Medicare Tax and Net Investment Income Tax limits, remain unindexed and quietly affect more taxpayers each year.
π More From SmartFinanceHub
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Compound Interest Calculator
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ROI Calculator
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π️
IRS.gov
Official Revenue Procedure 2025-32 release
Primary source
π
Form 1040
Official individual income tax return
Gov source
π Sources & External References
- Internal Revenue Service — "IRS releases tax inflation adjustments for tax year 2026," IRS.gov
- Internal Revenue Service — Revenue Procedure 2025-32
- Tax Foundation — "2026 Tax Brackets and Federal Income Tax Rates"
- Bipartisan Policy Center — "2026 Federal Income Tax Brackets and Interactive Calculator"
- Britannica Money — "2026 Tax Brackets: Rates, Standard Deduction, & Inflation Adjustments"
⚠️ Disclaimer: This content is for general informational and educational purposes only and does not constitute tax, legal, or financial advice. Tax outcomes depend on your complete financial situation, deductions, credits, and filing status. Consult a licensed CPA or tax professional, or refer directly to IRS.gov, before filing. See our full disclaimer.
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