/images/2018/01/23/navina-side-hustle-mid_MPfEDfV.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
:format(webp)/images/2025/12/03/internal-revenue-service-building.jpg)
/authors/adam-palasciano-headshot_1.jpg)
/authors/abasseheadshot.png)
Each year, the IRS tweaks tax bracket thresholds to reflect inflation and other policy changes — and 2026 is no exception. These adjustments are part of efforts to prevent "bracket creep," where rising incomes push taxpayers into higher rates even if their purchasing power hasn't grown. Knowing how the 2026 tax brackets work can help you build wealth more effectively by planning deductions, withholdings, and savings. Even modest tweaks in the numbers can influence your tax situation and your take-home pay.
Below, we break down the changes and what you should consider before filing.
Get instant access to hundreds of discounts
Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.
Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.
IRS tax brackets explained
Tax brackets are the income ranges to which the federal income tax rates apply in the United States. The U.S. uses a progressive tax system, meaning different segments of your taxable income are taxed at increasing rates — from 10% at the lowest levels up to 37% at the highest.
You never pay your entire income at one rate; instead, each portion within a bracket is taxed at that bracket's rate. Understanding your bracket helps you estimate how much federal tax you might owe on a given income level, and it can help to inform decisions about deductions, retirement contributions, and timing income.
Tax bracket income thresholds are increasing
The IRS adjusted federal income tax brackets for 2026 to account for inflation, pushing income thresholds higher across every marginal rate. While the top tax rate stays the same, more of your income may be taxed at lower rates if your earnings don't rise as quickly as the brackets themselves. These shifts can slightly reduce your overall tax burden, even if your salary stays flat.
Below is a side-by-side look at how the thresholds changed.
2025 vs. 2026 federal income tax brackets
Here are the 2026 income tax brackets:
| Tax rate | Single | Married filing separately | Married filing jointly | Head of household |
| 10% | $0 - $12,400 | $0 - $12,400 | $0 - $24,800 | $0 - $17,700 |
| 12% | $12,401 - $50,400 | $12,401 - $50,400 | $24,801 - $100,800 | $17,701 - $67,450 |
| 22% | $50,401 - $105,700 | $50,401 - $105,700 |
$100,801 - $211,400 | $67,451 - $105,700 |
| 24% | $105,701 - $201,775 | $105,701 - $201,775 | $211,401 - $403,550 | $105,701 - $201,750 |
| 32% | $201,776 - $256,225 | $201,776 - $256,225 | $403,551 - $512,450 | $201,751 - $256,200 |
| 35% | $256,226 - $640,600 | $256,226 - $384,350 | $512,451 - $768,700 | $256,201 - $640,600 |
| 37% | $640,601 and up | $384,351 and up | $768,701 and up | $640,601 and up |
And these are the 2025 income tax brackets for comparison:
| Tax rate | Single | Married filing separately | Married filing jointly | Head of household |
| 10% | $0 - $11,925 | $0 - $11,925 | $0 - $23,850 | $0 - $17,000 |
| 12% | $11,926 - $48,475 | $11,926 - $48,475 | $23,851 - $96,950 | $17,001 - $64,850 |
| 22% | $48,476 - $103,350 | $48,476 - $103,350 |
$96,951 - $206,700 | $64,851 - $103,350 |
| 24% | $103,351 - $197,300 | $103,351 - $197,300 | $206,701 - $394,600 | $103,351 - $197,300 |
| 32% | $197,301 - $250,525 | $197,301 - $250,525 | $394,601 - $501,050 | $197,301 - $250,500 |
| 35% | $250,526 - $626,350 | $250,526 - $375,800 | $501,051 - $751,600 | $250,501 - $626,350 |
| 37% | $626,351 and up | $375,801 and up | $751,601 and up | $626,351 and up |
These adjustments help ensure taxpayers aren't pushed into higher rates just because wages keep pace with inflation.
How tax bracket changes might affect you
Although the tax rates themselves remain unchanged, the income ranges for each bracket have expanded for 2026. For taxpayers whose incomes grow with inflation, this means more of your earnings may remain in lower brackets, helping avoid unexpected tax increases. The standard deduction also rises modestly — to $16,100 for single filers (or those married filing separately), $32,200 for married couples filing jointly or surviving spouses, and $24,150 for heads of households — which reduces taxable income before brackets are applied.
Staying aware of these changes can help you plan withholdings, deductions, and retirement contributions more strategically.
Resolve $10,000 or more of your debt
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who complete the program and settle all debts typically save around 45% before fees or 20% including fees over 24–48 months, based on enrolled debts. “Debt-free” applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Average program completion time is 24–48 months; not all debts are eligible, and results vary as not all clients complete the program due to factors like insufficient savings. We do not guarantee specific debt reductions or timelines, nor do we assume debt, make payments to creditors, or offer legal, tax, bankruptcy, or credit repair services. Consult a tax professional or attorney as needed. Services are not available in all states. Participation may adversely affect your credit rating or score. Nonpayment of debt may result in increased finance and other charges, collection efforts, or litigation. Read all program materials before enrolling. National Debt Relief’s fees are based on a percentage of enrolled debt. All communications may be recorded or monitored for quality assurance. In certain states, additional disclosures and licensing apply. ©️ 2009–2025 National Debt Relief LLC. National Debt Relief (NMLS #1250950, CA CFL Lic. No. 60DBO-70443) is located at 180 Maiden Lane, 28th Floor, New York, NY 10038. All rights reserved. <b><a href="https://www.nationaldebtrelief.com/licenses/">Click here</a></b> for additional state-specific disclosures and licensing information.</p>
Sign up for a free debt assessment here.
How to prepare for tax bracket changes
Tax bracket adjustments aren't just technical — they can affect your overall tax strategy. Preparing now can help you reduce your tax burden and make informed financial decisions.
Reviewing your income, deductions, and retirement contributions before the year ends can position you to benefit from these bracket shifts. Below are practical ways to prepare before filing your tax return.
Adjust your withholdings or estimated taxes
If your income shifts year over year, it's important to revisit your tax withholdings or estimated tax payments. Under the new 2026 thresholds, withholding too little could result in a surprise tax bill, while too much means you're giving an interest-free loan to the government. Use the IRS tax withholding estimator or speak to a tax pro to fine-tune your tax strategy based on expected income changes.
Maximize tax-advantaged accounts
Contributing to retirement accounts such as a 401(k) or IRA can lower your taxable income, which may keep more of your earnings in lower tax brackets. The income you defer reduces your taxable income now and can mean less tax owed at the end of the year.
With the IRS's new inflation-adjusted limits for 2026, you have an opportunity to contribute more than before — which could amplify this benefit.
Plan deductions and credits year-round
Identifying deductions and credits ahead of time helps you make strategic decisions, like timing charitable gifts or medical expenses for years when they provide the most value.
Knowing your likely tax bracket can inform whether it's worth accelerating or delaying certain expenses.
Bottom line
The IRS made modest but meaningful changes to the 2026 federal tax bracket thresholds, which could reduce the risk of your income creeping into a higher tax rate simply due to inflation. Understanding where your income falls under these updated ranges and combining this insight with planning tools like retirement contributions and deductions can help you grow your wealth over time.
Taking time now to understand and prepare for these bracket adjustments can make your tax season smoother and support better financial outcomes well into the future.
More from FinanceBuzz:
- 12 ways to pocket up to $300
- Are you a homeowner? Get a protection plan on all your appliances.
- 10 little weird hacks Costco shoppers should know.
- Learn how to escape the paycheck-to-paycheck grind.
/images/2021/04/21/adobestock_192812280_1200x628.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
/images/2025/01/28/adobestock_628402894_1.jpeg)
/images/2024/09/04/adobestock_669069249_editorial_use_only_1.jpeg)
/images/2020/03/02/tattoo-woman-bar.jpeg)
/images/2020/12/21/smiling-couple-looking-at-laptop-screen.jpeg)
Benefits Card Details Intro Offer
Discover will match all the cash back you’ve earned at the end of your first year.
Annual Fee $0 Why we like it
/images/2025/01/23/discover_it_cash_back_card_art_gold.png)
/images/2022/04/20/senior-couple-happy-laptop-computer.jpg)
/images/2022/02/04/woman_with_lottery_ticket.jpg)
/images/2021/05/05/happy-young-investor.jpg)
/images/2024/08/08/girl-chooses-wine-in-supermarket-adobe.jpg)
/images/2024/10/19/charming-downtown-streets-cold-spring-new-york.jpeg)
/images/2025/12/22/envelope-with-paycheck.jpg)
/images/2025/12/22/family-gathering-grandpa-and-grandkids.jpg)
/images/2024/07/18/gas-station-pump-with-hand.jpg)
/images/2023/03/09/male-auditor-checking-irs-tax-audit-using-magnifier.jpeg)
/images/2024/03/15/stressed-woman-reviewing-bills-at-home.jpeg)
/images/2024/02/22/hollywood-beach-florida.jpg)
