How income tax brackets work and what's changing for 2026

Photo collage of a coin, and vintage bank slips — Next year's changes are particularly relevant for taxpayers on the cusp of one bracket or another

(Image credit: Illustration by Julia Wytrazek / Getty Images)

With the passage of Trump's signature tax and spending bill in July, a lot is poised to change tax-wise in the coming year. Among the bill's provisions was making permanent the tax brackets instituted by the 2017 Tax Cuts and Jobs Act (TCJA), which were previously set to expire at the end of 2025 and would have pushed some taxpayers into higher marginal tax rates.

That does not mean that tax brackets will remain exactly the same, however. Ahead of each new year, the IRS updates the income ranges for each tax bracket to take into account inflation. On the whole, "tax brackets will rise by about 4% for lower-income ranges and roughly 2% for higher earners," said CNBC Make It. These changes particularly are relevant for taxpayers on the cusp of one bracket or another.

First, a quick refresher on how income tax brackets work

Before we dive straight into the numbers, let's make sure we're all on the same page as far as how income tax brackets work. Put simply, a tax bracket "is the range of incomes taxed at given rates, which typically differ depending on filing status," said the Tax Foundation. Filing statuses include single filers, married couples filing jointly, married couples filing separately, and head of household filers, each of which has their own distinct tax brackets.

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In the U.S., rates go up the higher someone's income is. So, a person who earns under $10,000 is taxed at a lower rate than someone whose annual taxable income is over $500,000. There are seven different tax brackets in the U.S., starting at 10% and topping out at 37%.

What are the 2026 income tax brackets and rates?

For federal income tax returns filed for tax year 2026 (meaning, the tax returns you file in early 2026), the following tax brackets and rates apply:

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Single filers
Tax rate	Taxable income
10%	Up to $12,400
12%	Over $12,400 to $50,400
22%	Over $50,400 to $105,700
24%	Over $105,700 to $201,775
32%	Over $201,775 to $256,225
35%	Over $256,225 to $640,600
37%	Over $640,600

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Married couples filing jointly
Tax rate	Taxable income
10%	Up to $24,800
12%	Over $24,800 to $100,800
22%	Over $100,800to $211,400
24%	Over $211,400 to $403,550
32%	Over $403,550 to $512,450
35%	Over $512,450to $768,700
37%	Over $768,700

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Married couples filing separately
Tax rate	Taxable income
10%	Up to $12,400
12%	Over $12,400 to $50,400
22%	Over $50,400to $105,700
24%	Over $105,700to $201,775
32%	Over $201,775 to $256,225
35%	Over $256,225 to $384,350
37%	Over $384,350

Swipe to scroll horizontally

Heads of household
Tax rate	Taxable income
10%	Up to $17,700
12%	Over $17,700 to $67,450
22%	Over $67,450 to $103,700
24%	Over $103,700 to $201,775
32%	Over $201,775 to $256,200
35%	Over $256,200 to $640,600
37%	Over $640,600

How will tax brackets change for 2026?

Perhaps what is most notable about tax bracket changes for 2026 is what won't change. With President Trump's One Big Beautiful Bill Act getting signed into law, the tax brackets introduced in the 2017 Tax Cuts and Job Act will become permanent going forward rather than expiring at the end of 2025, as they were set to do. "Without the new law, federal income tax rates would have reverted to their pre-2018 levels — when the top marginal rate was 39.6% — potentially increasing taxes for many households," said SmartAsset, a personal finance blog.

Otherwise, income brackets are "moving up for 2026, with a bigger bump for the lowest brackets because of this year’s new tax law," said The Wall Street Journal. This "overall adjustment of 2.7% comes in just under the current inflation rate."

Can you lower your tax bracket?

It certainly is possible to lower your tax bracket, and there are a number of ways you can go about doing it. This includes:

Filing under a different status: How you file could affect which tax bracket you qualify for: "If you're married, filing a joint return with your spouse could qualify you for a lower tax bracket, or, depending on your income and circumstances, you may lower your tax bracket by filing an individual return," said USA Today.
Contributing to a 401(k) or IRA: You may also lower your tax bracket by contributing to a 401(k) plan, as your contributions will lower your taxable income. Contributing to an IRA could also allow you to secure a tax deduction, which could help with lowering your tax bracket.
Looking at the effect of standard vs. itemized deductions: Calculate how taking the standard deduction as opposed to itemized deductions shifts things, "since it could put you in a lower bracket, depending on your financial situation," said USA Today.

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.