The Internal Revenue Service (IRS) has released the official federal tax brackets for 2026. This is good news for millions of Americans because they could actually pay less in taxes for 2026 income. The One Big, Beautiful Bill (OBBB) came with inflation adjustments and provisions that will see higher income thresholds and a larger standard deduction.
How Tax Brackets Work
The IRS uses seven brackets to calculate your tax bill based on your income and filing status. The brackets are: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. As your income rises, it moves into the next bracket, but only that portion is taxed at the higher rate. In other words, you don’t pay the tax rate on every dollar of income because it is broken down by thresholds.
The IRS adjusts those thresholds every year to account for inflation. Doing so prevents bracket creep, which occurs when rising incomes due to inflation push payers into higher brackets even when their purchasing power has not increased.
What Just Changed
For 2026, the IRS has adjusted tax-bracket thresholds, standard deductions, and other tax parameters to reflect inflation. Because of these new thresholds, many Americans will keep more of their earnings before moving into the next tax rate.
In addition, under the One Big, Beautiful Bill, several structural changes were made — including locking in certain bracket rates and boosting standard deductions across all filing statuses. These changes mean taxpayers could pay less in 2026 even if they get a raise.
2025 vs. 2026 Federal Income Tax Brackets
Single Filers
| Tax Rate | 2025 Taxable Income | 2026 Taxable Income |
| 10% | Up to $11,925 | Up to $12,400 |
| 12% | $11,926 – $48,475 | $12,401 – $50,400 |
| 22% | $48,476 – $103,350 | $50,401 – $105,700 |
| 24% | $103,351 – $197,300 | $105,701 – $201,775 |
| 32% | $197,301 – $250,525 | $201,776 – $256,225 |
| 35% | $250,526 – $626,350 | $256,226 – $640,600 |
| 37% | Over $626,350 | Over $640,600 |
Married Filing Jointly
| Tax Rate | 2025 Taxable Income | 2026 Taxable Income |
| 10% | Up to $23,850 | Up to $24,800 |
| 12% | $23,851 – $96,950 | $24,801 – $100,800 |
| 22% | $96,951 – $206,700 | $100,801 – $211,400 |
| 24% | $206,701 – $394,600 | $211,401 – $403,550 |
| 32% | $394,601 – $501,050 | $403,551 – $512,450 |
| 35% | $501,051 – $751,600 | $512,451 – $768,700 |
| 37% | Over $751,600 | Over $768,700 |
Married Filing Separately
| Tax Rate | 2025 Taxable Income | 2026 Taxable Income |
| 10% | Up to $11,925 | Up to $12,400 |
| 12% | $11,926 – $48,475 | $12,401 – $50,400 |
| 22% | $48,476 – $103,350 | $50,401 – $105,700 |
| 24% | $103,351 – $197,300 | $105,701 – $201,775 |
| 32% | $197,301 – $250,525 | $201,776 – $256,225 |
| 35% | $250,526 – $375,800 | $256,226 – $384,350 |
| 37% | Over $375,800 | Over $384,350 |
Bigger Standard Deductions and Other Changes
As a result of the OBBB, standard deductions increase across all filing statuses. In 2026, deductions for married couples rise to $32,200, $16,100 for single filers, and $24,150 for heads of households, up from $31,500, $15,750, and $23,625 respectively in 2025.
The IRS confirmed that these inflation adjustments would start to take effect for returns filed in 2027.
Besides the increase in standard deductions, beneficiaries will also enjoy higher Earned Income Tax Credit, increased Medical Savings Account limits, and expanded employer-provided childcare credits, which jump from $150,000 to $500,000.
How These New Tax Brackets Could Lower Your 2026 Bill
As a result of the increased standard deductions, your paycheck may stretch further in 2026. Additionally, since the brackets have stretched further, and deductions have increased, a slight raise might not push you into a higher marginal rate.
To maximize the benefit, you should consider:
- Contributing to retirement accounts to reduced taxable income.
- Taking advantage of the higher standard deduction.
- Using tax credits and deductions strategically to keep your effective tax rate low.
Conclusion
The new IRS tax brackets for 2026 and the OBBB’s expanded deductions are some of the most taxpayer-friendly adjustments in recent years. Americans are set to see real savings on their 2026 tax bills due to the new higher income thresholds and expanded credits.