The IRS has announced new 2026 tax brackets, which are adjusted each year to account for inflation.
The new tax brackets will take effect in 2026 and affect taxpayers when they file their 2027 returns.
A financial advisor can help you develop the right tax strategy to ensure you’re keeping more of your hard-earned money.
What are the tax brackets for 2026?
The IRS has released the 2026 federal income tax brackets, which apply to tax returns filed in 2027. These play a vital role in your financial planning.
Here is a breakdown of the 2026 tax brackets:
| Tax rate | Single filers | Married couples filing jointly | Married couples filing separately | Head of household |
|---|---|---|---|---|
| 10% | $12,400 or less | $24,800 or less | $12,400 or less | $17,700 or less |
| 12% | $12,401-$50,400 | $24,801-$100,800 | $12,401-$50,400 | $17,701-$67,450 |
| 22% | $50,401-$105,700 | $100,801-$211,400 | $50,401-$105,700 | $67,451-$105,700 |
| 24% | $105,701-$201,775 | $211,401-$403,550 | $105,701-$201,775 | $105,701-$201,750 |
| 32% | $201,776-$256,225 | $403,551-$512,450 | $201,776-$256,225 | $201,751-$256,200 |
| 35% | $256,226-$640,600 | $512,451-$768,700 | $256,226-$384,350 | $256,201-$640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $384,350 | Over $640,600 |
As a reminder, below are the 2025 federal income tax brackets. These apply to income earned in 2025.
| Tax rate | Single filers | Married couples filing jointly | Married couples filing separately | Head of household |
|---|---|---|---|---|
| 10% | $11,925 or less | $23,850 or less | $11,925 or less | $17,000 or less |
| 12% | $11,926-$48,475 | $23,851-$96,950 | $11,926-$48,475 | $17,001-$64,850 |
| 22% | $48,476-$103,350 | $96,951-$206,700 | $48,476-$103,350 | $64,851-$103,350 |
| 24% | $103,351-$197,300 | $206,701-$394,600 | $103,351-$197,300 | $103,351-$197,300 |
| 32% | $197,301-$250,525 | $394,601-$501,050 | $197,301-$250,525 | $197,301-$250,500 |
| 35% | $250,526-$626,350 | $501,051-$751,600 | $250,526-$375,800 | $250,501-$626,350 |
| 37% | Over $626,350 | Over $751,600 | Over $375,800 | Over $626,350 |
What is the standard deduction for the 2026 tax year?
According to the IRS, the standard deduction is a “specific dollar amount that reduces the amount of taxable income.”
Your standard deduction depends on your filing status and other factors, including whether you’re 65 or over, dependent on another taxpayer, or if you are visually impaired.
Similar to tax brackets, this is also adjusted annually for inflation.
Here is a breakdown of the standard deduction for 2026:
Married couples filing jointly: $32,200
Single taxpayers: $16,100
Married individuals filing separately: $16,100
Heads of households $24,150.
Under the One, Big, Beautiful Bill, the standard deduction for the 2025 tax year has been raised:
Married couples filing jointly: $31,500
Single taxpayers: $15,750
Married individuals filing separately: $15,750
Heads of households $23,625.
How do I determine my federal tax bracket?
Determining your federal tax bracket involves understanding your filing status and taxable income.
Let's delve deeper into each filing type:
Single: This filing status applies to individuals who are not married or are legally separated according to state law by the last day of the tax year.
Married filing jointly: Married couples can choose to file a joint tax return, combining their incomes and deductions. This status often results in lower taxes than filing separately, as it allows access to more advantageous tax brackets and deductions.
Married filing separately: Married couples who choose to file separate tax returns report their own incomes and deductions independently from each other. This status may be beneficial in certain situations, such as when one spouse has significant medical expenses or miscellaneous itemized deductions.
Head of household: This filing status is for unmarried individuals who provide a home for qualifying dependents, a child or a relative who relies on you for financial support. To qualify as head of household, you must be unmarried or considered unmarried on the last day of the year, pay more than half the cost of maintaining a home for the tax year, and have a qualifying dependent living with you for more than half the year.
Capital gains tax brackets in 2026
Along with the federal income tax thresholds, the IRS also updates the capital gains tax thresholds for inflation each year.
For 2026, the long-term capital gains tax rates remain at 0%, 15%, and 20%, but the income thresholds have shifted.
Here is a breakdown of the new brackets:
| Rate | Single filers | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $49,450 | Up to $66,200 |
| 15% | $49,451–$545,500 | $98,901–$613,700 | $49,451–$306,850 | $66,201–$579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $306,850 | Over $579,600 |
What other tax changes will come into force in 2026?
A number of other tax changes will come into effect in 2026:
Child tax credit for 2026: A maximum $2,200 child tax credit will be in effect for tax years 2025 and 2026, up from $2,000 per child. The refundable portion of the child tax credit is $1,700 for 2026.
Estate tax credit for 2026: Estates of those who die during 2026 have a basic exclusion amount of $15 million, up from a total of $13.99 million.
Adoption credit for 2026: The amount of qualified adoption expenses for 2026 is $17,670, up from $17,280. For tax year 2026, the maximum refundable credit is $5,120.
Foreign earned income exclusion: For the tax year 2026, the foreign earned income exclusion is $132,900, up from $130,000.
Earned income tax credit for 2026:
| Number of children | 2025 maximum | 2026 maximum |
|---|---|---|
| Three or more | $8,046 | $8,231 |
| Two | $7,152 | $7,316 |
| One | $4,328 | $4,427 |
| None | $649 | $664 |
When will 2027 tax brackets be released?
While the 2027 tax brackets have not yet been announced, the IRS will likely reveal them in the fall of 2026.
The 2026 brackets were announced on Thursday, October 9, 2025.
Get expert financial advice
Staying on top of tax changes is essential for effective tax planning.
By reviewing your plan and consulting experts, you’ll be well-prepared to navigate these updates confidently.
Let Unbiased match you with a financial advisor for expert financial advice to help you navigate federal income tax brackets and optimize your tax strategy.