CURRENT TAX RATES
2026 Tax Brackets
The 2026 income ceiling for all listed tax brackets and for all filers, adjusted for inflation are listed below. The Seven federal income tax rates for 2026 are… 10% – 12% – 22% – 24% – 32% – 35% – 37% The marginal income tax rate of 37% will apply to taxpayers with taxable income above $640,601 (single filers), and $768,701 is the target for married couples filing jointly…(SEE Table 1)
Table 1. Tax Brackets and Rates, 2026 (Source: IRS)
| Rate | Single Individuals - Taxable Income Over | Married Individuals Filing Joint Returns - Taxable Income Over | Heads of Households - Taxable Income Over |
|---|---|---|---|
|
10% |
Up to $12,400 |
Up to $24,800 |
Up to $17,700
|
|
12% |
$12,401 to $50,400 |
$24,801 to $100,800 |
$17,701 to $67,450 |
|
22% |
$50,401 to $105,700 |
$100,801 to $211,400 |
$67,451 to $105,700 |
|
24% |
$105,701 to $201,775 |
$211,401 to $403,550 |
$105,701 to $201,775 |
|
32% |
$201,776 to $256,225 |
$403,551 to $512,450 |
$201,776 to $256,200 |
|
35% |
$256,226 to $640,600 |
$512,451 to $768,700 |
$256,201 to $640,600 |
|
37% |
At or above $640,601 |
At or above $768,701 |
At or above $640,601 |
Table 2. 2026 Standard Deduction and Personal Exemption (Source: IRS)
The standard deduction will increase by $350 for single filers and by $700 for joint filers compared to the 2025 tax year (Table 2). The OBBBA boosted the standard deduction in 2025 by $750 for single filers and $1,500 for joint filers compared to prior law on top of the 2026 inflation adjustment.
Seniors over age 65 may claim an additional standard deduction of $2,050 for single filers and $1,650 for joint filers. On top of this, taxpayers aged 65 and older both itemizing and claiming the standard deduction may claim a new $6,000 deduction per qualifying taxpayer, phasing out at a six percent rate for those earning over $75,000 (single) and $150,000 (joint) as part of the separate senior deduction under the OBBBA.
The personal exemption for 2025 remains at $0 (eliminating the personal exemption was part of the TCJA, and the $0 amount was made permanent as part of the OBBBA).
| Filing Status | Deduction Amount |
|---|---|
|
Single |
$16,100 |
|
Married Filing Jointly |
$32,200 |
|
Head of Household |
$24,150 |
The alternative minimum tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding the individual income tax. This parallel income tax system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two.
The AMT uses an alternative definition of taxable income called alternative minimum taxable income (AMTI). To prevent low- and middle-income taxpayers from being subject to the AMT, taxpayers are allowed to exempt a significant amount of their income from AMTI. However, the exemption phases out for high-income taxpayers. The AMT is levied at two rates: 26 percent and 28 percent.
The AMT exemption amount for 2026 is $90,100 for singles and $140,200 for married couples filing jointly (Table 3), a continuation of the TCJA design adjusted for inflation after the structure was made permanent in the OBBBA.
Table 3. 2026 Alternative Minimum Tax Exemptions (Source:IRS)
| Filing Status | Exemption Amount |
|---|---|
|
Unmarried Individuals |
$90,100
|
|
Married Filing Jointly |
$140,200 |
2026 still sees the AMT rate at 28%. This rate applies to excess AMTI of $244,500 for all taxpayers ($140,200 for married couples who file separate returns).
The AMT exemptions phase out at 50 cents per dollar earned once a taxpayers AMTI hits a certain threshold. In 2026, the exemption will start phasing out at $500,000 in AMTI for single filers and $1,000,000 for married taxpayers filing jointly (SEE Table 4).
Table 4. 2026 Alternative Minimum Tax Exemption Phaseout Thresholds
| Filing Status | Threshold |
|---|---|
|
Unmarried Individuals |
$500,000 |
|
Married Filing Jointly |
$1,000,000 |
The maximum earned income tax credit (EITC) in 2026 for single and joint filers is $664 if the filer has no children (Table 5). The maximum credit is $4,427 for one child, $7,316 for two children, and $8,231 for three or more children.
Table 5. 2026 Earned Income Tax Credit Parameters
| Filing Status | Single or Head of Household | No Children | One Child | Two Children | Three or More Children |
|---|---|---|---|---|---|
|
|
Income at Max Credit |
$8,680 |
$13,020 |
$18,290 |
$18,290
|
|
|
Maximum Credit |
$664 |
$4,427 |
$7,316 |
$8,231
|
|
|
Phaseout Begins |
$10,860 |
$23,890 |
$23,890 |
$23,890 |
|
|
Phaseout Ends (Credit Equals 0 (Zero)) |
$19,540 |
$51,593 |
$58,629 |
$62,974 |
|
|
Married Filing Jointly |
|
|
|
|
|
|
Income at Max Credit |
$8,680 |
$13,020 |
$18,290 |
$18,290 |
|
|
Maximum Credit |
$664 |
$4,427 |
$7,316 |
$8,231 |
|
|
Phaseout Begins |
$18,140 |
$31,160 |
$31,160 |
$31,160 |
|
|
Phaseout Ends (Credit Equals Zero) |
$26,820 |
$58,863 |
$65,899 |
$70,224
|
The TCJA included a 20 percent deduction for pass-through businesses, and the OBBBA made this deduction permanent.
Limits on the deduction begin phasing in for taxpayers with income above $201,775 (or $403,500 for joint filers) in 2026 (Table 6). The OBBBA slowed the range of income the deduction limits phase in from $50,000 to $75,000 for single filers and from $100,000 to $150,000 for taxpayers married filing jointly.
Table 6. 2026 Qualified Business Income Deduction Thresholds (Source:IRS)
| Filing Status | Threshold |
|---|---|
|
Unmarried Individuals |
$201,775
|
|
Married Filing Jointly |
$403,500
|
The maximum child tax credit (CTC) in both 2025 and 2026 is $2,200 per qualifying child and will be adjusted for inflation moving forward. The OBBBA made the underlying expanded CTC from the TCJA permanent, increased the maximum CTC up from $2,000, and introduced the inflation adjustment.
The refundable portion of the child tax credit is adjusted for inflation and will remain at $1,700 for 2026
In 2026, the first $19,000 of gifts to any person is excluded from tax, remaining the same as in 2025. The exclusion is increased to $194,000 from $190,000 for gifts to spouses who are not citizens of the United States.
The OBBBA made the TCJA-era estate tax exemption permanent and raised it to $15 million per person beginning in 2026, adjusted for inflation moving forward.
Capital Gains, long term, are taxed using different rates and brackets compared to standard income.
Table 7. 2026 Capital Gains Tax Rates & Brackets (Source:IRS)
| Unmarried Individuals - Taxable Income Over | Married Individuals Filing Joint Returns - Taxable Income Over | Heads of Households - Taxable Income Over | |
|---|---|---|---|
|
0% |
Up to $0 |
Up to $0 |
Up to $0
|
|
15% |
$49,450 |
$98,900 |
$66,200 |
|
20% |
$545,500 |
$613,700 |
$579,600 |
