Understanding 2026 Tax Brackets: A Comprehensive Guide
Published on January 10, 2026
The US federal income tax system is progressive. This is one of the most misunderstood concepts in personal finance. Being in the "24% bracket" does not mean you pay 24% of your income to the IRS.
How Progressive Brackets Work
Imagine your income is filling up a series of buckets. Each bucket is taxed at a different rate:
- Bucket 1 (10%): The first ~$11,925 of your taxable income.
- Bucket 2 (12%): Income from ~$11,926 up to ~$48,475.
- Bucket 3 (22%): Income from ~$48,476 up to ~$103,350.
If you earn $50,000, only the small portion above $48,475 is taxed at 22%. The rest is taxed at the lower rates. This average is your Effective Tax Rate.
Marginal vs. Effective Tax Rate
Your marginal tax rate is the percentage tax applied to your last dollar earned. This is important for deciding if you should work overtime or contribute to a 401(k).
Your effective tax rate is the total tax you pay divided by your total income. This is the number that matters for your budget. You can find your exact effective rate using our After-Tax Salary Calculator.
Standard Deduction 2026
For 2026, the standard deduction has increased to adjust for inflation. This amount is subtracted from your gross income before tax is calculated.
- Single Filers: ~$15,000
- Married Filing Jointly: ~$30,000
This means if you are single and earn $15,000, you effectively pay $0 in federal income tax.
Tax Brackets Table 2026 (Projected)
| Rate | Single Filers | Married Jointly |
|---|---|---|
| 10% | $0 - $11,925 | $0 - $23,850 |
| 12% | $11,926 - $48,475 | $23,851 - $96,950 |
| 22% | $48,476 - $103,350 | $96,951 - $206,700 |
| 24% | $103,351 - $197,300 | $206,701 - $394,600 |
| 32% | $197,301 - $250,525 | $394,601 - $501,050 |
| 35% | $250,526 - $626,350 | $501,051 - $751,600 |
| 37% | $626,351+ | $751,601+ |