2026  tax brackets: Inflation adjusted tax brackets 

How the One Big Beautiful Bill affected 2026 tax brackets 

The One Big Beautiful Bill Act (OBBBA) affected 2026 tax brackets by making the tax rates set by the 2017 Tax Cuts and Jobs Act permanent. That means that tax rates will be the same for 2026 (filing in 2027) as they were for 2025. Previously, the 37% rate was set to increase to 39.6%.

Making tax rates permanent is just one of the many tax changes introduced in the OBBBA that could impact how much tax you owe in 2026. A bigger standard deduction and new tax deductions on tips, overtime pay, and more may mean less tax or possibly a bigger tax refund. Talk to your local Jackson Hewitt Tax Pro about how these changes may impact your unique tax situation.

2026 federal income tax rates 

The federal income tax rates for 2026 are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Each rate applies to a specific tax bracket, or range of income. Generally, the more you earn, the higher the tax rate you’ll pay.  The table is graduated. Income within each bracket is taxed at that rate. As income increases, only the portion that falls into a higher bracket is taxed at the higher rate.

Every year, the IRS publishes inflation-adjusted tax brackets to ensure that inflation-related income increases alone don’t push taxpayers into higher tax brackets. The IRS tax tables for 2026 have small increases in income thresholds for each tax bracket compared to 2025. That means, if your income didn’t change, your taxes may be lower, potentially getting you a bigger refund! 

Whether you're filing as single, married filing jointly, qualifying surviving spouse, or head of household, your filing status has its own tax brackets and benefits. For example, married couples can choose to combine their incomes and potentially pay lower taxes by filing jointly. 

2026 tax brackets for single filers 

Single filers, or individuals who are unmarried or legally separated according to state law, have their own set of tax brackets for determining their federal income tax liability. 

By understanding the tax brackets and rates applicable to your income level as a single filer, you can make informed decisions about deductions, credits, and other tax-planning strategies to minimize the amount of taxes you owe. A Jackson Hewitt Tax Pro can help you, if you’re unsure. 

2026 tax brackets for married couples filing jointly 

Married couples filing jointly use a tax status that allows them to combine their incomes and file one shared tax return. This means that both spouses report their income, deductions, and credits together on one tax form. 

Additionally, a surviving spouse may use the same married filing jointly tax rates if they meet the qualifying surviving spouse criteria. 

The benefit of filing jointly for married couples (and qualifying surviving spouses) is in potentially paying less tax compared to filing separately. This status often offers lower tax rates and higher standard deductions. 

2026 tax brackets for married couples filing separately 

Married couples have the option to file separate tax returns, which is known as married filing separately. There are various reasons to choose this status if you’re married, such as differing financial circumstances or legal concerns. 

Filing separately may result in different tax implications compared to filing jointly. While it allows each spouse to report income, deductions, and credits separately, it may also lead to a higher tax bill for some couples. This is because certain tax benefits and deductions, such as the Earned Income Tax Credit (EITC) and student loan interest deduction, may be reduced or unavailable to those filing separately. 

Couples considering this filing status should carefully weigh the potential advantages and disadvantages. Work with a Tax Pro to determine the best approach for your unique situation. 

2026 tax brackets for heads of households 

Filing as head of household offers more favorable rates compared to filing as a single taxpayer. To qualify as a head of household, you must meet specific criteria, including providing the primary support for a qualifying dependent. 

Filing as head of household offers lower tax rates and higher standard deductions compared to single filers. Qualifying dependents may include children, relatives, or other individuals you provide financial support for, if they meet certain eligibility criteria set by the IRS. 

If you’re filing as head of household, it’s essential to ensure you meet all IRS requirements and accurately report your dependents on your tax return. 

How tax brackets and tax rates work (example) 

Think of tax brackets as a ladder, with each rung representing a different range of income. As your income climbs the ladder rungs, the tax rates increase. The government uses these brackets to determine how much tax you owe, based on how much you earn and your rung(s) on the ladder.  

As noted above, in 2026, the federal income tax rates consist of seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.  

The U.S. operates on a progressive tax system, meaning that higher earners pay a greater percentage of their income in taxes. However, this doesn't mean that if you move into a higher tax bracket on the ladder, your entire income is taxed at that rate. Instead, only the portion of your income that falls within that specific bracket is taxed at that rate. 

Here’s an example. Let’s say you're a filing Single in the 22% tax bracket, and your taxable income is $65,000. This doesn't mean you owe 22% of $65,000, which comes out to $14,300 in taxes. Instead, your income is divided into ladder rungs, or brackets. This means you’ll owe 10% for rung number 1, on the first $12,400, 12% on the income you earn between $12,401 - $50,400 ($38,000 income, on rung number 2), and 22% on the remaining $14,600 that reaches the third rung on the ladder. The total tax is $9,012. 

But if you’re married filing jointly with the same $65,000 income, you’re in the 12% tax bracket. You owe 10% on the $24,800 on rung number 1, and 12% on the remaining $40,200 (rung 2). You have no income on the third rung or above. The total tax is $7,304.

Understanding tax brackets is crucial for effective financial planning. By knowing how they work, you can make informed decisions about your income, investments, and expenses, so that you can owe less in taxes and potentially even get a bigger return. 

How to reduce taxable income and avoid a higher tax bracket 

Lowering your tax bracket can help reduce your overall tax liability (the amount of tax you owe to the IRS in any given year) and keep more of your hard-earned money in your pocket. While you can't control the tax rates themselves, there are several strategies you can use to potentially lower the amount of taxable income you report.

• Maximize retirement contributions: Contributing to tax-advantaged retirement accounts, such as a 401(k) or IRA, can lower your taxable income. Contributions to these accounts are tax deductible, which means that they reduce your taxable income for the year. 
• Take advantage of deductions: Itemizing deductions or taking the standard deduction can help lower your taxable income. Common deductions include charitable donations, property taxes, and medical expenses. For 2026, you may also be eligible to deduct a portion of overtime, tips, and new car loan interest. Be sure to keep track of all eligible expenses throughout the year and consult with a Tax Pro to determine the best deduction strategy for your situation. 
• Take advantage of tax credits: Tax credits reduce your taxable income dollar-for-dollar, making them a valuable tool, resulting in less tax owed and potentially a bigger refund. Common tax credits include the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Take advantage of all available tax credits that you qualify for to maximize your tax savings. 
• Invest in tax-efficient accounts: Investing in tax-efficient accounts, such as  Health Savings Accounts (HSAs) or 529 college savings plans, can help lower your taxable income. HSAs allow you to contribute pretax dollars to cover qualified medical expenses, while 529 plans offer tax-free growth and withdrawals for qualified education expenses. 

By implementing these strategies, you can lower your taxable income, maximize your refund, and keep more of your money in your pocket. However, it's essential to consider your unique financial situation and consult with a Tax Pro to develop a strategy that fits your needs. 

In conclusion, tax planning is a critical component of smart financial management, and understanding tax brackets is key to optimizing your tax situation. 

By knowing how tax brackets work, leveraging the right filing status, and implementing strategic tax-planning strategies, you can lower the amount of taxes you owe and keep more of your hard-earned money. 

Don’t file alone. Work with a Tax Pro who can help you plan for success.