2026 Federal Tax Brackets Explained
Understanding how progressive tax rates work and how marginal tax brackets affect your overall tax liability
What Are Tax Brackets?
Tax brackets are ranges of taxable income that are taxed at different rates. The United States uses a progressive tax system, meaning your tax rate increases as your income increases. You don't pay one flat rate on all your income—instead, different portions of your income are taxed at different rates.
How Progressive Taxation Works
A common misconception is that reaching a higher tax bracket means all your income is taxed at that rate. This is incorrect. Only the income within each bracket is taxed at that bracket's rate.
Example: If you're single and earn $100,000, you don't pay 24% on all $100,000. You pay 12% on the first portion, then 22% on the next portion, and finally 24% on only the income above $100,000.
2026 Federal Tax Brackets (Single Filers)
| Income Range | Tax Rate |
|---|---|
| $0 - $15,000 | 12% |
| $15,000 - $50,000 | 22% |
| $50,000 - $100,000 | 24% |
| $100,000+ | 35% |
2026 Federal Tax Brackets (Married Filing Jointly)
| Income Range | Tax Rate |
|---|---|
| $0 - $30,000 | 12% |
| $30,000 - $100,000 | 22% |
| $100,000 - $200,000 | 24% |
| $200,000+ | 35% |
Standard Deduction for 2026
Before tax brackets apply, you can reduce your taxable income by taking the standard deduction:
- Single Filers: $15,000
- Married Filing Jointly: $30,000
Understanding Your Effective Tax Rate
Your effective tax rate is your total tax divided by your total income. It's always lower than your marginal tax rate (the rate of your highest tax bracket). For example:
Single filer with $80,000 taxable income:
- $15,000 × 12% = $1,800
- $35,000 × 22% = $7,700
- $30,000 × 24% = $7,200
- Total Tax: $16,700
- Effective Rate: 20.9% (not 24%)
Tax Planning Tips
- Understand your marginal vs. effective tax rate
- Consider timing of income and deductions
- Maximize retirement contributions to reduce taxable income
- Use tax-advantaged accounts wisely
- Calculate your estimated tax liability before year-end
Calculate Your Tax
Want to see how tax brackets affect your specific situation? Use our annual tax calculator to instantly calculate your federal tax liability based on the 2026 brackets.