2026 Tax Rates
2026 Federal Tax Reference
Inflation-adjusted figures for tax year 2026, from IRS Revenue Procedure 2025-32 and Notice 2025-67, reflecting changes made by the One Big Beautiful Bill Act.
These amounts apply to income earned during 2026 and reported on returns filed in early 2027. Provided for reference; not a substitute for advice on your own situation.
Federal Income Tax Brackets
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,775 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,776 – $256,200 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,201 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Standard Deduction
| Filing Status | 2026 | 2025 |
|---|---|---|
| Single / Married Filing Separately | $16,100 | $15,750 |
| Married Filing Jointly | $32,200 | $31,500 |
| Head of Household | $24,150 | $23,625 |
Taxpayers 65 and older may claim an additional standard deduction of $2,050 (single) or $1,650 per qualifying spouse (joint). A separate $6,000 senior deduction under the OBBBA is available whether or not the taxpayer itemizes, phasing out above $75,000 (single) and $150,000 (joint), and is scheduled to expire after 2028. The personal exemption remains $0.
Long-Term Capital Gains
| Rate | Single, taxable income over | Married Filing Jointly, over | Head of Household, over |
|---|---|---|---|
| 0% | $0 | $0 | $0 |
| 15% | $49,450 | $98,900 | $66,200 |
| 20% | $545,500 | $613,700 | $579,600 |
Qualified Business Income Deduction (Sec. 199A)
| Filing Status | Threshold | Limits fully phased in |
|---|---|---|
| Single | $201,775 | $276,775 |
| Married Filing Jointly | $403,500 | $553,500 |
The 20% pass-through deduction was made permanent by the OBBBA, which also widened the phase-in range. Where a business sits relative to these thresholds is often something entity structure and owner compensation can influence.
Alternative Minimum Tax
| Filing Status | Exemption | Phaseout begins |
|---|---|---|
| Unmarried | $90,100 | $500,000 |
| Married Filing Jointly | $140,200 | $1,000,000 |
The 28% AMT rate applies to AMTI above $244,500 ($122,250 married filing separately). The OBBBA returned phaseout thresholds to 2018 levels and accelerated the phaseout to 50 cents per dollar — for some taxpayers an increase over 2025, when phaseouts began at $626,350 (single) and $1,252,700 (joint).
Retirement Plan Limits
| Limit | 2026 | 2025 |
|---|---|---|
| 401(k), 403(b), governmental 457, TSP elective deferral | $24,500 | $23,500 |
| Catch-up, age 50+ | $8,000 | $7,500 |
| Catch-up, ages 60–63 | $11,250 | $11,250 |
| IRA contribution | $7,500 | $7,000 |
| IRA catch-up, age 50+ | $1,100 | $1,000 |
| SIMPLE plan deferral | $17,000 | $16,500 |
| Defined contribution annual additions | $72,000 | $70,000 |
| Defined benefit annual limit | $290,000 | $280,000 |
| Compensation limit §401(a)(17) | $360,000 | $350,000 |
New for 2026: under SECURE 2.0, participants whose prior-year FICA wages from the employer exceeded $150,000 must make catch-up contributions as designated Roth contributions. That is a planning item for owner-employees, not only a payroll detail.
Estate, Gift and Credits
| Item | 2026 |
|---|---|
| Estate and lifetime gift exemption, per person | $15,000,000 |
| Annual gift exclusion, per recipient | $19,000 |
| Annual gift exclusion, non-citizen spouse | $194,000 |
| Child tax credit, per qualifying child | $2,200 |
| Refundable portion of child tax credit | $1,700 |
| Maximum EITC, three or more children | $8,231 |
The OBBBA made the estate tax exemption permanent and raised it to $15 million per person beginning in 2026, indexed going forward.
Brackets tell you what you owe. Structure determines which bracket you land in.
The figures above describe the rules. What most often changes the outcome is entity structure, owner compensation, and the timing of income and deductions across several years.
Sources: IRS Revenue Procedure 2025-32 (October 9, 2025) and IRS Notice 2025-67 (November 13, 2025), reflecting the One Big Beautiful Bill Act, P.L. 119-21, enacted July 4, 2025. Reviewed August 2026. Tax year 2027 figures are expected from the IRS in late 2026.
Start With the Larger Picture
Whether your immediate concern is a tax bill, business structure, cash flow, advisor coordination, or a long-term wealth decision, the first step is understanding how it fits within the rest of your structure.