2026 federal tax brackets, explained
The IRS set the 2026 figures in Rev. Proc. 2025-32: a $16,100 standard deduction for singles ($32,200 married filing jointly) and seven brackets from 10% to 37%. Here is how they actually apply, and the misunderstanding that costs people real money.
The 2026 brackets (taxable income)
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0, $12,400 | $0, $24,800 |
| 12% | to $50,400 | to $100,800 |
| 22% | to $105,700 | to $211,400 |
| 24% | to $201,775 | to $403,550 |
| 32% | to $256,225 | to $512,450 |
| 35% | to $640,600 | to $768,700 |
| 37% | above | above |
"Taxable income" is what remains after the standard deduction (or itemizing). A single $80,000 salary is $63,900 taxable: the first $12,400 at 10%, the rest at 12% and 22%: $8,770 of tax, an effective rate of 11%, even though the "bracket" says 22%.
The bracket system itself never makes a raise cost you money
Only the dollars above each threshold are taxed at the higher rate. A raise that "pushes you into the 22% bracket" taxes just the excess at 22%. The rest of your income keeps its lower rates, so the bracket system itself never makes a raise or overtime leave you worse off. Benefit phase-outs are a separate question: some deductions, including the OBBBA ones below, shrink as income rises.
What changed with the OBBBA
The 2025 tax law made the TCJA rates permanent, gave the bottom two brackets a bigger inflation bump, and added temporary deductions through 2028: up to $25,000 of tips, $12,500 of overtime premium ($25,000 joint), $10,000 of car-loan interest and $6,000 per senior, each with income phase-outs. From 2026, non-itemizers can also deduct $1,000 ($2,000 joint) of charitable donations.
Don't forget FICA
Brackets are only part of a paycheck: Social Security takes 6.2% up to $184,500 of wages and Medicare 1.45% (plus 0.9% above $200,000). That is why a single $60,000 earner keeps about $50,390 federally, not the $54,980 the brackets alone would suggest. Check any salary in the paycheck calculator.
Frequently asked questions
Does moving into a higher tax bracket mean all my income is taxed at the higher rate?
No. Only the dollars above the bracket threshold are taxed at the higher rate. Income below that threshold keeps its lower rates, so a raise that pushes you into a new bracket never costs more in total tax than the raise itself.
What new deductions did the OBBBA add for 2026?
The 2025 tax law added temporary deductions through 2028 for tip income, overtime premium pay, car-loan interest and a per-senior amount, each subject to income phase-outs. Non-itemizers can also deduct up to $1,000 ($2,000 joint) of charitable donations from 2026.
Why is my federal take-home lower than the tax brackets alone would suggest?
The brackets cover only income tax. Social Security at 6.2% (up to the wage base) and Medicare at 1.45% are charged on top as FICA taxes, so your effective total federal burden is higher than the income tax bracket rate alone.
Sources: IRS Rev. Proc. 2025-32; IRS Working Families Tax Cuts pages. Last updated 2026-11-04.