US Tax Brackets for 2026: Marginal vs Effective Tax Rate
“I don’t want a raise, it will push me into a higher tax bracket” is one of the most persistent money myths. US federal income tax is progressive: each rate applies only to a slice of your income. Here are the 2026 brackets and how to work out what you really pay.
Key takeaways
- There are seven federal rates in 2026: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
- The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.
- Your marginal rate applies to your next dollar; your effective rate is total tax ÷ income.
- A single filer earning $85,000 pays about $9,870 of federal income tax: a 22% marginal rate but an 11.6% effective rate on gross income.
The 2026 federal income tax brackets
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
These apply to taxable income: what is left after the standard deduction (or itemised deductions) and pre-tax contributions. The standard deduction for 2026 is $16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household.
How the brackets are applied
Think of your taxable income as water filling a series of buckets. The first bucket is taxed at 10%, the next at 12%, and so on. Moving into a higher bracket only changes the rate on the income that spills into the new bucket.
A worked example
A single filer earns $85,000 in wages and takes the standard deduction.
- Taxable income: $85,000 − $16,100 = $68,900
- 10% on the first $12,400 = $1,240.00
- 12% on the next $38,000 ($12,400 to $50,400) = $4,560.00
- 22% on the remaining $18,500 ($50,400 to $68,900) = $4,070.00
- Total federal income tax: $9,870.00
- Marginal rate: 22%, the rate on the last dollar earned.
- Effective rate on taxable income: $9,870 ÷ $68,900 = 14.3%.
- Effective rate on gross income: $9,870 ÷ $85,000 = 11.6%.
If this person gets a $1,000 raise, their tax rises by exactly $220 (22% of $1,000). They keep $780 of the raise before payroll and state taxes. Moving into a higher bracket never leaves you with less money after federal income tax.
Enter your income and filing status to estimate your federal tax, marginal rate and effective rate.
Why the difference between the two rates matters
Use the marginal rate for decisions at the edge
A traditional 401(k) contribution, an extra shift, a bonus or a deductible expense all happen “at the top” of your income. For the person above, every $1,000 put into a traditional 401(k) cuts federal tax by $220. That is why the traditional vs Roth decision depends on your marginal rate.
Use the effective rate for the big picture
Your effective rate tells you what share of income goes to federal income tax overall. It is useful for budgeting and for comparing years, but it understates the tax on any extra income.
Deductions vs credits
- A deduction reduces taxable income. Its value equals the deduction × your marginal rate: a $1,000 deduction saves $220 in the 22% bracket.
- A credit reduces the tax itself, dollar for dollar. A $1,000 credit saves $1,000 whatever your bracket.
From 2025 through 2028 there are also new temporary deductions, including for some tip and overtime income and an additional deduction for people aged 65 and over, each with its own limits and income phase-outs. Check the IRS guidance if they may apply to you.
What these brackets do not include
Federal income tax is only part of the picture. Social Security and Medicare, state income tax and local taxes are charged separately; our guide to reading your paycheck brings them together. Long-term capital gains and qualified dividends are taxed under a separate rate schedule.
Frequently asked questions
Can a raise put me in a higher bracket and lower my take-home pay?
No. Only the income above each threshold is taxed at the higher rate. A raise always increases take-home pay, although some benefits and credits that phase out with income can reduce the gain.
Which rate should I use for decisions?
Use your marginal rate to judge the tax effect of an extra dollar earned or deducted, such as a bonus or a 401(k) contribution. Use your effective rate to understand your overall tax burden.
Are the 2026 brackets permanent?
The 2025 tax law made the current seven rates permanent. The bracket thresholds and the standard deduction are adjusted for inflation every year.
Does this include state tax and FICA?
No. These are federal income tax brackets only. Social Security, Medicare and any state or local income tax are charged separately.
Sources
This guide is general information to help you understand the numbers. It is not financial, tax or legal advice. Rates, limits and rules change, so check official sources or a qualified adviser before making a decision. Read our full disclaimer.