2026 Tax Brackets: What Changed and How It Affects Your Take-Home Pay
The IRS's Revenue Procedure 2025-32 raised every 2026 federal tax bracket threshold and the standard deduction by about 2.7% for inflation — to $16,100 for single filers and $32,200 for joint filers. Holding your salary flat, a single filer earning $75,000 owes roughly $279 less federal tax in 2026 than under 2025's brackets.
What are the 2026 federal income tax brackets?
The IRS released the official 2026 inflation adjustments on October 9, 2025, under Revenue Procedure 2025-32. There are still seven brackets — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — but every dollar threshold moved up by about 2.7%, a larger-than-typical jump driven by continued inflation and the permanent extension of 2017's tax law under the One Big Beautiful Bill Act (OBBBA), signed in July 2025.
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,775 – $256,200 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,200 – $640,600 |
| 37% | $640,600+ | $768,700+ | $640,600+ |
Source: IRS Revenue Procedure 2025-32, tax year 2026. Each rate applies only to the slice of taxable income inside that range — not your entire income. Run your own numbers with our Tax Calculator.
How much did the standard deduction increase for 2026?
The 2026 standard deduction is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for heads of household. That's a $350 increase for single filers, $700 for joint filers, and $525 for heads of household compared to 2025's $15,750 / $31,500 / $23,625 figures. A larger standard deduction shields more income from tax entirely, before the bracket math even starts.
How much less tax will you pay in 2026 versus 2025?
Comparing 2025 and 2026 brackets at the same gross income, using only the standard deduction, shows the exact dollar effect of the inflation adjustment — separate from any raise, credit, or new OBBBA deduction:
| Gross Income (Single) | 2025 Federal Tax | 2026 Federal Tax | Annual Savings |
|---|---|---|---|
| $50,000 | $3,871.50 | $3,820.00 | $51.50 |
| $75,000 | $7,949.00 | $7,670.00 | $279.00 |
| $100,000 | $13,449.00 | $13,170.00 | $279.00 |
| $150,000 | $25,067.00 | $24,734.00 | $333.00 |
| $300,000 | $69,034.75 | $68,134.25 | $900.50 |
Single filer, federal income tax only (excludes FICA, state tax, and credits), standard deduction only. Calculated from IRS Revenue Procedure 2024-40 (2025) and Revenue Procedure 2025-32 (2026) bracket tables.
Higher earners save more in absolute dollars because more of their income shifts into wider lower-rate brackets, but the savings as a share of income are small — under 0.4% of gross pay in every example above. The real take-home pay story for 2026 isn't the inflation adjustment itself; it's the stack of new OBBBA deductions layered on top of it.
What other 2026 take-home pay changes come from the One Big Beautiful Bill Act?
Beyond the routine inflation adjustment, OBBBA created four new above-the-line deductions available for tax years 2025 through 2028:
- No tax on tips: deduct up to $25,000 in reported qualified tips. Phases out for single filers with modified adjusted gross income (MAGI) above $150,000 ($300,000 joint), fully gone at $400,000 single ($550,000 joint).
- No tax on overtime: deduct the extra “half” portion of time-and-a-half pay, up to $12,500 single or $25,000 joint per year. Same $150,000 / $300,000 MAGI phase-out as the tips deduction.
- Senior deduction: an extra $6,000 deduction per person age 65+, on top of the existing additional standard deduction for seniors. Phases out above $75,000 MAGI single ($150,000 joint).
- Auto loan interest deduction: up to $10,000 of interest per year on a loan taken out after 2024 for a vehicle with final assembly in the U.S. Phases out above $100,000 MAGI single ($200,000 joint).
These stack on top of the bracket and standard deduction changes. A server earning $18,000 in reported tips who sits in the 22% marginal bracket could deduct the full amount, cutting federal tax by roughly $3,960 (22% of $18,000) — payroll taxes and any state or local tax still apply. A retiree with $40,000 in qualifying income who is 65+ and in the 12% bracket could see about $720 in federal tax savings from the new $6,000 senior deduction alone.
Model your full 2026 tax picture
Our Tax Estimation Workbook (2026) runs federal income tax, FICA, AMT screening, W-4 withholding checks, and SALT-capped deductions side by side across all four filing statuses — no subscription required.
How is your 2026 take-home pay actually calculated?
Take-home pay starts with gross wages, subtracts pre-tax deductions (401(k), HSA, health premiums), then applies FICA (7.65% for most employees), federal income tax withholding based on your W-4, and any state or local tax. The 2026 bracket and standard deduction changes only affect the federal income tax piece — they don't touch FICA or state tax rates. You can estimate your full paycheck breakdown, including these 2026 figures, with our Salary Calculator, and check just the federal bracket math with the Tax Calculator.
Does a bigger deduction show up in your paycheck automatically?
No. Employers withhold federal tax based on the W-4 form you have on file, using IRS withholding tables that are updated for the new brackets — but if your W-4 hasn't changed, the software your payroll provider uses applies the new 2026 tables automatically starting with your first 2026 paycheck. If you want to fine-tune withholding to match a new deduction you're claiming, like the tips or overtime deduction, submit an updated W-4 rather than waiting for your refund to reflect it.
Frequently asked questions about 2026 tax brackets
What are the 2026 federal income tax brackets for single filers?
10% up to $12,400, 12% up to $50,400, 22% up to $105,700, 24% up to $201,775, 32% up to $256,225, 35% up to $640,600, and 37% above that, per IRS Revenue Procedure 2025-32.
What is the 2026 standard deduction?
$16,100 single / married filing separately, $32,200 married filing jointly, and $24,150 head of household — up $350, $700, and $525 respectively over 2025.
Why did the 2026 tax brackets increase?
The IRS adjusts brackets and the standard deduction annually for inflation. 2026's roughly 2.7% increase reflects the chained CPI-U formula used in Revenue Procedure 2025-32.
How much less tax will I pay in 2026 compared to 2025?
A single filer earning $75,000 with only the standard deduction owes about $279 less in 2026 than 2025, before any OBBBA deductions like tips or overtime are applied.
What is the “no tax on tips” deduction for 2026?
Up to $25,000 in reported qualified tips can be deducted through 2028, phasing out above $150,000 MAGI single ($300,000 joint).
What is the “no tax on overtime” deduction?
Up to $12,500 single ($25,000 joint) of the “half” portion of time-and-a-half overtime pay can be deducted through 2028, with the same $150,000 / $300,000 MAGI phase-out as tips.
Is there a new tax deduction for seniors in 2026?
Yes — an extra $6,000 deduction per person age 65+ through 2028, phasing out above $75,000 MAGI single ($150,000 joint).
Does a bigger standard deduction or wider brackets automatically raise my paycheck?
Not by itself — withholding follows your W-4. Without an update, the lower 2026 tax burden may show up as a bigger refund instead of more take-home pay per paycheck.
Data sources: 2026 bracket and standard deduction figures per the Internal Revenue Service (Revenue Procedure 2025-32) and cross-checked against Tax Foundation. 2025 comparison figures per IRS Revenue Procedure 2024-40. OBBBA deduction details per the IRS Working Families Tax Cuts guidance. Analysis by the staff at accurate.software.