Sapir EA · Tax Reference Guide
2026 Tax Brackets & Federal Income Tax Rates
A quick-reference guide to important federal tax figures for the 2026 tax year, including income tax brackets, standard deductions, capital gains rates, retirement contribution limits, business deductions, credits, and estate and gift tax amounts.
Updated July 2026 · These figures generally apply to income earned during 2026 and returns filed in 2027
2026 Federal Income Tax Brackets
Seven federal income tax rates apply in 2026: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These brackets apply to taxable income after applicable deductions.
| Taxable income | Rate |
|---|---|
| $0 – $12,400 | 10% |
| $12,401 – $50,400 | 12% |
| $50,401 – $105,700 | 22% |
| $105,701 – $201,775 | 24% |
| $201,776 – $256,225 | 32% |
| $256,226 – $640,600 | 35% |
| $640,601 and above | 37% |
| Taxable income | Rate |
|---|---|
| $0 – $24,800 | 10% |
| $24,801 – $100,800 | 12% |
| $100,801 – $211,400 | 22% |
| $211,401 – $403,550 | 24% |
| $403,551 – $512,450 | 32% |
| $512,451 – $768,700 | 35% |
| $768,701 and above | 37% |
| Taxable income | Rate |
|---|---|
| $0 – $12,400 | 10% |
| $12,401 – $50,400 | 12% |
| $50,401 – $105,700 | 22% |
| $105,701 – $201,775 | 24% |
| $201,776 – $256,225 | 32% |
| $256,226 – $384,350 | 35% |
| $384,351 and above | 37% |
| Taxable income | Rate |
|---|---|
| $0 – $17,700 | 10% |
| $17,701 – $67,450 | 12% |
| $67,451 – $105,700 | 22% |
| $105,701 – $201,775 | 24% |
| $201,776 – $256,200 | 32% |
| $256,201 – $640,600 | 35% |
| $640,601 and above | 37% |
The tax rate applies only to income falling within each bracket. Moving into a higher bracket does not cause all income to be taxed at the higher percentage.
↑ Back to top2026 Standard Deduction
The standard deduction reduces the amount of income subject to federal income tax.
| Filing status | Deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly or Surviving Spouse | $32,200 |
| Married Filing Separately | $16,100 |
| Head of Household | $24,150 |
| Additional deduction for age 65 or blindness | Amount |
|---|---|
| Single or Head of Household, for each qualifying condition | $2,050 |
| Married taxpayer or Surviving Spouse, for each qualifying condition | $1,650 |
| Additional senior deduction for a qualifying taxpayer age 65 or older | $6,000 |
The additional senior deduction may be subject to income limitations and phaseout rules. Eligibility should be evaluated based on the taxpayer’s specific circumstances.
↑ Back to top2026 Long-Term Capital Gains and Qualified Dividends
Qualified dividends and qualifying long-term capital gains may be taxed at preferential rates of 0%, 15%, or 20%.
| Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|
| 0% | $0 – $49,450 | $0 – $98,900 | $0 – $49,450 | $0 – $66,200 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 | $49,451 – $306,850 | $66,201 – $579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $306,850 | Over $579,600 |
| Net Investment Income Tax | Additional 3.8% may apply above applicable modified adjusted gross income thresholds |
| Maximum rate on collectibles | 28% |
| Maximum rate on unrecaptured Section 1250 gain | 25% |
The 3.8% Net Investment Income Tax may apply in addition to the regular capital gains rate.
↑ Back to top2026 Social Security and Medicare Taxes
| Employer rate | 6.20% |
| Employee rate | 6.20% |
| Self-employed rate | 12.40% |
| Maximum taxable wage base | $184,500 |
| Employer rate | 1.45% |
| Employee rate | 1.45% |
| Self-employed rate | 2.90% |
| Medicare wage limit | None |
| Additional Medicare Tax above applicable wage thresholds | 0.90% |
The combined self-employment tax rate is generally 15.3% on net earnings up to the Social Security wage base. Medicare tax continues above the wage base.
↑ Back to top2026 Retirement Plan Contribution Limits
| Retirement plan | General limit | Catch-up contribution |
|---|---|---|
| 401(k), 403(b), 457(b), and Thrift Savings Plan elective deferrals | $24,500 | $8,000 for age 50 or older; $11,250 for ages 60 through 63 |
| Traditional and Roth IRA | $7,500 | $1,100 for age 50 or older |
| SIMPLE IRA employee contribution | $17,000 | $4,000 for age 50 or older; $5,250 for ages 60 through 63 |
| SEP IRA employer contribution | Up to 25% of compensation, limited to $72,000 | Not applicable |
The higher catch-up amount for taxpayers ages 60 through 63 replaces the standard age-50 catch-up contribution rather than being added to it.
↑ Back to top2026 Estate and Gift Tax
| Estate, gift, and generation-skipping transfer tax exemption per person | $15,000,000 |
| Top estate and gift tax rate | 40% |
| Annual gift tax exclusion per recipient | $19,000 |
| Annual exclusion for gifts to a non-citizen spouse | $194,000 |
The annual exclusion applies separately to each recipient. A gift exceeding the annual exclusion does not necessarily create an immediate tax liability, but it may require a gift tax return and use part of the lifetime exemption.
↑ Back to top2026 Alternative Minimum Tax
| Exemption for unmarried individuals | $90,100 |
| Exemption for Married Filing Jointly | $140,200 |
| Exemption for Married Filing Separately | $70,100 |
| Income level where the 28% AMT rate begins | $244,500, or $122,250 for MFS |
| Exemption phaseout begins | $500,000 for single filers and $1,000,000 for joint filers |
The Alternative Minimum Tax uses a separate calculation with different deductions, exemptions, and tax rates.
↑ Back to top2026 Tax Credits, Education Benefits, and Kiddie Tax
| Child Tax Credit per qualifying child | $2,200 |
| Potential refundable portion | Up to $1,700 |
| Maximum Earned Income Tax Credit for three or more qualifying children | $8,231 |
| American Opportunity Tax Credit per eligible student | $2,500 |
| Lifetime Learning Credit per return | $2,000 |
| Student loan interest deduction | $2,500 |
| Coverdell ESA contribution limit | $2,000 |
| First portion of unearned income | $1,350 tax-free |
| Next portion of unearned income | $1,350 generally taxed at the child’s rate |
| Unearned income over $2,700 | May be taxed at the parent’s marginal rate |
| QSEHRA self-only reimbursement limit | $6,450 |
| QSEHRA family reimbursement limit | $13,100 |
Many credits and deductions are subject to income limitations, eligibility requirements, and phaseout rules.
↑ Back to top2026 Business Expensing and Qualified Business Income
| Section 179 maximum deduction | $2,560,000 |
| Section 179 phaseout threshold | $4,090,000 |
| Section 179 limit for qualifying heavy SUVs | $32,000 |
| Bonus depreciation | 100% |
| Maximum general deduction | Up to 20% of QBI |
| Threshold for Single or Head of Household | $201,750 |
| Threshold for Married Filing Separately | $201,775 |
| Threshold for Married Filing Jointly | $403,500 |
| Minimum deduction when applicable | $400 |
The Qualified Business Income deduction is subject to wage, property, business-type, and taxable-income limitations. Business owners should not assume that 20% of all business income will automatically qualify.
↑ Back to top2026 Income Tax Rates for Trusts and Estates
Trust and estate income tax brackets are highly compressed. The highest rate is reached at a much lower income level than for individual taxpayers.
| Taxable income | Tax calculation |
|---|---|
| Not over $3,300 | 10% of taxable income |
| $3,301 – $11,700 | $330 plus 24% of the amount over $3,300 |
| $11,701 – $16,000 | $2,346 plus 35% of the amount over $11,700 |
| Over $16,000 | $3,851 plus 37% of the amount over $16,000 |
Additional 2026 Federal Tax Deductions
Selected deductions that may apply depending on income, filing status, occupation, expenses, and other eligibility requirements.
| Deduction | Who may qualify | General 2026 rule |
|---|---|---|
| Qualified Business Income deduction | Qualifying owners of pass-through businesses | Up to 20% of qualifying business income, subject to limitations |
| Qualified tips deduction | Eligible taxpayers who receive qualifying tip income | Up to $25,000, subject to income and eligibility limitations |
| Qualified overtime deduction | Eligible employees receiving qualifying overtime compensation | Up to $12,500, or $25,000 for qualifying joint filers |
| Senior deduction | Qualifying taxpayers age 65 or older | Up to $6,000 per qualifying taxpayer, subject to phaseout |
| Auto loan interest deduction | Eligible purchasers of qualifying vehicles | Up to $10,000 of qualifying interest, subject to restrictions and phaseout |
| Charitable deduction for non-itemizers | Eligible taxpayers claiming the standard deduction | Up to $1,000 for single filers or $2,000 for qualifying joint filers |
| Mortgage interest deduction | Qualifying taxpayers who itemize | Interest on qualifying mortgage debt, subject to applicable limits |
| State and local tax deduction | Qualifying taxpayers who itemize | Up to $40,400 in 2026, subject to income limitations and phaseout |
2026 Standard Mileage Rates and Other Figures
| Purpose | January 1 – June 30 | July 1 – December 31 |
|---|---|---|
| Business driving | 72.5¢ per mile | 76¢ per mile |
| Medical driving | 20.5¢ per mile | 23.5¢ per mile |
| Moving for qualifying active-duty members of the Armed Forces | 20.5¢ per mile | 23.5¢ per mile |
| Charitable driving | 14¢ per mile | 14¢ per mile |
| Prior-year estimated-tax safe harbor for certain higher-income taxpayers | 110% of prior-year tax |
| Unearned income threshold before kiddie-tax treatment may apply | $2,700 |
| Social Security wage base | $184,500 |
| Estate and gift tax exemption | $15,000,000 |
Taxpayers using the standard mileage method should retain a contemporaneous mileage log documenting the date, business purpose, destination, and number of miles driven.
See our 2026 mileage-log guidance for additional recordkeeping information.
↑ Back to topFrequently Asked Questions About 2026 Tax Rates
Answers to common questions about 2026 federal tax brackets, deductions, and contribution limits.
What is the 2026 standard deduction?
What are the federal income tax rates for 2026?
Does entering a higher tax bracket mean all income is taxed at the higher rate?
What is the 2026 401(k) contribution limit?
What is the 2026 IRA contribution limit?
What is the 2026 estate and gift tax exemption?
What is the 2026 standard mileage rate for business?
Need help understanding how these tax rates affect you?
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