2026 Federal Tax Brackets
For the 2026 tax year, the IRS has adjusted brackets for inflation. Here are the seven federal income tax brackets for single filers: 10% (up to $11,925), 12% (up to $48,475), 22% (up to $103,350), 24% (up to $197,300), 32% (up to $250,525), 35% (up to $626,350), and 37% (above $626,350).
Married filing jointly brackets are roughly double these thresholds. The progressive system means you pay each rate only on income within that bracket — not your entire income at your top rate.
Standard Deduction Increases
The standard deduction for 2026 has increased: $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household. These increases mean more of your income is tax-free before brackets even apply.
For most taxpayers, the standard deduction is larger than itemized deductions, making tax filing simpler. Only taxpayers with significant mortgage interest, charitable contributions, and state/local taxes (capped at $10,000) benefit from itemizing.
Effective vs Marginal Rate
A single filer earning $100,000 has a 22% marginal rate but an effective rate around 13-14% after the standard deduction and lower brackets. Always know your effective rate — it is what you actually pay.
Capital Gains Tax Rates
Long-term capital gains (assets held over one year) are taxed at preferential rates: 0%, 15%, or 20% depending on income. For 2026 single filers: 0% up to $48,350, 15% up to $533,400, and 20% above.
Short-term gains (held one year or less) are taxed as ordinary income at your marginal rate. High earners may also owe a 3.8% Net Investment Income Tax (NIIT) on investment income above $200,000 (single) or $250,000 (MFJ).
Self-Employment Tax
Self-employment tax remains 15.3% on 92.35% of net business profit. This covers Social Security (12.4% up to the 2026 wage base of $184,500) and Medicare (2.9% on all income, plus 0.9% Additional Medicare above $200,000 single / $250,000 MFJ).
You can deduct half of your SE tax as an above-the-line adjustment to AGI, which softens the impact. Self-employed individuals should also consider setting up a SEP-IRA, Solo 401(k), or defined benefit plan to reduce taxable income.
- Social Security wage base: $184,500 (up from $176,100 in 2025)
- Medicare: 2.9% on all net SE income, no cap
- Additional Medicare Tax: 0.9% above $200,000/$250,000
- SE tax deduction: 50% of total SE tax is deductible above the line
Retirement Contribution Limits
For 2026, 401(k) contribution limits have increased to $24,000 (up from $23,500), with a $7,500 catch-up for those 50 and older. IRA limits remain at $7,000 with a $1,000 catch-up. HSA limits are $4,400 for self-only and $8,750 for family coverage.
Maxing out tax-advantaged accounts is one of the most effective ways to reduce your tax bill. A single filer maxing a 401(k) and IRA saves $31,000 in pre-tax contributions, potentially reducing their tax bill by $6,800+ depending on their bracket.
Crypto Tax Reporting
As of 2026, the IRS wash sale rule applies to cryptocurrency. This means you cannot sell crypto at a loss and repurchase the same or substantially identical asset within 30 days to claim the loss.
Every crypto disposal — selling to fiat, swapping one coin for another, or spending crypto on goods — triggers a taxable event. Staking rewards and mining income are taxed as ordinary income when received. Use our Crypto Tax Calculator to estimate your liability.
Tax planning is not about evading taxes — it is about understanding the rules and using every legal advantage to keep more of what you earn.
How Changes Affect Your Paycheck
The combination of bracket adjustments and standard deduction increases means most taxpayers will see a slight reduction in federal tax compared to 2025, even if their income stayed the same. However, state tax changes vary widely.
Use our Income Tax Calculator to see your exact 2026 federal tax liability, and the Take-Home Pay Calculator to understand your net pay after all deductions.
Put It Into Practice
Our suite of tax calculators is updated for 2026 brackets, deductions, and contribution limits. Run your numbers through the Income Tax Calculator, Take-Home Pay Calculator, and Self-Employment Tax Calculator to plan your year.
All calculations run in your browser — your financial data never leaves your device.