It’s 2026 tax bracket time

Photo by Markus Winkler on Unsplash

Updated Jan. 1, 2026: Let’s get the 2026 tax party started with the tax brackets that will apply to the new year’s income. While the deadline to make most moves affecting 2025 taxes was Dec. 31, it’s still helpful to compare the 2025 and 2026 income tax brackets as we file our 2025 return and implement strategies to cut this year’s taxes.

Let’s get the 2026 tax party started with the tax brackets that will apply to next year’s income. The info also can help with our 2025 tax moves, as we’re still trying to cut this year’s tax bill.s.

The Internal Revenue Service was able to finish some key work before almost half its staff was furloughed this week. Today, it released the annual inflation adjusted amounts that will apply to a variety of tax provisions in 2026.

Yes, the 2026 tax year. That means the new amounts apply to individual tax returns that will be filed in 2027.

And yes, I know it’s a bit confusing, since right now most of us are focusing on our 2025 taxes that we’ll file in 2026. But the annual adjustments are helpful in planning and making some tax moves at the end of this year that could cut our more immediate tax bill.

Early info aids tax planning: Take, for example, your tax bracket. These earning ranges determine how much of your income is taxed at the Internal Revenue Code’s seven tax rates.

The IRS’ annual bracket preview in the fall of each year lets you see, based on where your income is now and what you expect in the coming year, where your future taxes will fall. And that knowledge can help shape your tax moves now to maximize current tax breaks and/or minimize your 2025 bill.

One move, where applicable, is to postpone some of this year’s expected income if it will keep you in a lower tax bracket this year. And when you receive the delayed compensation in 2026, the new wider tax bracket will accommodate the added earnings.

Another option if you find you will be in a higher tax bracket next year is to convert traditional IRA money to a Roth IRA now. Then the tax you owe will be taxed at your lower rate.

Of course, all tax moves should be made in with your overall financial situation and needs in mind. If you are the least bit trepidatious about what to do, your best tax move is to talk to a tax professional.

But a little homework before that tax adviser meeting won’t hurt, so the table below shows the tax rates for new income ranges in 2026.

2026 INDIVIDUAL TAX RATES AND INCOME BRACKETS You will use these tax rates and income brackets when completing your 2026 tax return to be filed in 2027.
Tax Rate	Single	Head of Household	Married Filing Jointly or Surviving Spouse	Married Filing Separately
10%	Up to $12,400	Up to $17,700	Up to $24,800	Up to $12,400
12%	$12,401 to $50,400	$17,701 to $67,450	$24,801 to $100,800	$12,401 to $50,400
22%	$50,401 to $105,700	$67,451 to $105,700	$100,801 to $211,400	$50,401 to $105,700
24%	$105,701 to $201,775	$105,701 to $201,775	$211,401 to $403,550	$105,701 to $201,775
32%	$201,776 to $256,225	$201,776 to $256,200	$403,551 to $512,450	$201,776 to $256,225
35%	$256,226 to $640,600	$256,201 to $640,600	$512,451 to $768,700	$256,226 to $384,350
37%	$640,601 or more	$640,601 or more	$768,701 or more	$384,351 or more

And for comparison purposes, the table below shows the current 2025 tax year rates and income tax brackets we’ll use when filing our returns next year.

2025 INDIVIDUAL TAX RATES AND INCOME BRACKETS You will use these tax rates and income brackets when completing your 2025 tax return to be filed in 2026.
Tax Rate	Single	Head of Household	Married Filing Jointly or Surviving Spouse	Married Filing Separately
10%	Up to $11,925	Up to $17,000	Up to $23,850	Up to $11,925
12%	$11,926 to $48,475	$17,001 to $64,850	$23,851 to $96,950	$11,926 to $48,475
22%	$48,476 to $103,350	$64,851 to $103,350	$96,951 to $206,700	$48,476 to $103,350
24%	$103,351 to $197,300	$103,351 to $197,300	$206,701 to $394,600	$103,351 to $197,300
32%	$197,301 to $250,525	$197,301 to $250,500	$394,601 to $501,050	$197,301 to $250,525
35%	$250,526 to $626,350	$250,501 to $626,350	$501,051 to $751,600	$250,526 to $375,800
37%	$626,351 or more	$626,351 or more	$751,601 or more	$375,801 or more

And if If you just haven’t had enough tax numbers, you also can check out the ol’ blog’s special page on tax rates and income brackets through the years.

Progressive tax rates pay off: As the 2026 and 2025 income tax bracket tables show, the increase in income amounts to which each of the current seven tax rates apply means you’ll be able to make more money without your tax bill growing so much.

Remember, too, that the tax rates are marginal, not effective. You marginal rate is the tax rate applied to the last dollar you make.

But your effective tax rate is just like it sounds. It is the final, actual, and lower tax rate that applies when you finally tally up what you owe the U.S. Treasury. Tax deductions that reduce your taxable income, and tax credits that cut the tax you owe dollar-for-dollar, help you reach your effective tax rate.

The biggest factor, though, is our progressive tax system.

As the above tables show, your earnings are taxed at all the rates that apply to your income, not just at the final amount of your income.

Applying the just announced 2026 tax brackets, here’s how it works, using a single taxpayer — let’s call her Kathy — as an example.

Kathy’s 2026 annual income is $110,000. That would put her next year just into the 24 percent tax bracket. But her tax bill isn’t $26,400, which is 24 percent of $110,000.

Under our progressive tax system, the first chunk of Kathy’s earnings next year, up to $12,400 is taxed at 10 percent. The next tax rate, 12 percent, applies her earnings of $12,401 to $50,400. Her 2026 pay from $50,401 to $105,700 is taxed at 22 percent. And it’s only that last chunk of earned dollars, from $105,701 to $110,000 that is taxed at 24 percent.

That means her taxes breakout in 2026 is —

$12,400 x 10% = $1,240.00
$38,000 x 12% = $4,560.00
$55,300 x 22% = $12,166.00
$4,300 x 24% = $1,032.00

The total for Kathy’s 2025 tax bill comes to $18,998, well below the $26,400 if you applied the 24 percent tax rate to all her earnings.

And in fact, the smallest portion of Kathy’s total $110,000 income is taxed at her highest rate.

So, Kathy pays Uncle Sam an effective tax rate, which is the average rate of tax on all dollars, that’s a tinch under 17.3 percent, and not her marginal tax rate, which is the rate that applies to the last dollar a taxpayer earns, of 24 percent.

Of course, this calculation for Kathy’s 2026 tax bill is a basic, for-illustration-purposes-only example. The ol’ blog’s tax-savvy readers have already realized it doesn’t take into account the previously mentioned deductions or the other tax breaks that Kathy can claim to reduce her ultimate tax bill.

But the example’s rough numbers give you an idea of how the wider tax brackets of progressively taxed income will apply to your earnings in 2026.

But wait, there’s more: The tax brackets in this post are just a part of the vast array changes prompted by inflation and cited in the IRS announcement. That release gives you an overview of the coming changes. You also can take a deeper look at the items in the 37-page IRS Revenue Procedure 2025-32.

I am going through that longer IRS document now, and will discuss some of the myriad changes that could affect your 2026 taxes in future posts.

Those discussions will be in my annual 10-part tax-related inflation series that’s been a Don’t Mess With Taxes staple for years. I opted to tackle these yearly adjustments this way instead of as one massive data drop for several reasons.

First, it’s a lot of stuff, and we all have busy lives. And all our tax lives are different. By focusing on the sections separately, you have the option to skip areas that don’t affect you and head straight to the ones that do.

Plus, parsing the IRS adjustments in 10 different posts saves me (and you readers) from having to deal with one massive 20,000 word (or more!) post.

Second, while we all need to focus on tax planning in a timely manner, it is early October. There is time to spread this data out via 10 parts and still give you (and me) time to make any applicable tax-saving moves.

And third and finally, it gives me nine more already determined topics on which to blog in the coming days!

Tax inflation preview: Here’s a table of contents preview of what’s ahead in the 2026 version of tax-related inflation changes. It also is a good indicator of why I do it as a series.

1. 2026 tax rates and income brackets (This post!)
2. Standard deduction amounts and itemized deduction considerations
3. Credits and deductions, including adoption costs and assistance, Lifetime Learning Credit, Earned Income Tax Credit, educators’ expenses, interest on education loans and transportation fringe benefits
4. Medical-related tax provisions, including contributions to a flexible spending account (FSA), health savings account (HSA), medical savings account (MSA), and eligible and eligible long-term care premiums
5. Capital gains tax income brackets, estate and gift tax limits, kiddie tax, kiddie tax, and nanny tax
6. Alternative Minimum Tax exemption amounts and One Big Beautiful Bill Act changes for 2026, along with the Social Security wage base increase amount and other pay-related taxes
7. International worker tax issues, including foreign income and housing exclusions
8. Retirement (e.g., IRA etc.) and pension plan contribution limits
9. Penalties, for both individuals and tax pros, for things such as failure to file a timely 1040 or certain information returns
10. Standard mileage deduction rates (This is the final component, since the IRS issues these adjustments and later in the year.)

Again, I know all y’all tax geeks want as much tax information as soon as possible. I get it. So, I really appreciate your patience when comes to my extended presentation of the 2026 tax inflation info.

This post also appeared on my Don’t Mess With Taxes Substack.