It’s the same question every year for millions of Americans: Where does our annual incomes put us on the federal tax brackets? There have been changes made for 2026, but they don’t affect the returns we have to do this year for our 2025 incomes. Here are some things to know for returns filed next year — in other words, for returns filed in 2027 for 2026.
It will take more income to reach each higher tax bracket, with a 4 percent adjustment added for inflation for the lowest two tax brackets and a 2.3 percent increase for higher income brackets.
The threshold for a married couple climbs about $17,000. The highest rate of 37 percent will apply to those making $640,000 as individuals or $768,000 as couples. The lowest rate of 10 percent applies to single individuals making up to $12,400 or married couples making up to $24,800. The effective tax rate means, for example, that a couple making $100,800 in taxable income — more than $4,000 over the current rate — would stay in the 12 percent bracket.
Here’s the rate breakdown for 2026 federal taxes:
10 percent: Up to $12,400 single or up to $24,800 married filing jointly.
12 percent: $12,401-$50,400 single/$24,801-$100,800 married filing jointly.
22 percent: $50,401-$105,700 single/$100,801-$211,400 married filing jointly.
24 percent: $105,701-$201,775 single/$211,401-$403-550 married filing jointly.
32 percent: $201776-$256,225 single/$403,551-$512,450 married filing jointly.
35 percent: $256,226-$640,600 single/$512,451-$768,700 married filing jointly.
37 percent: $640,601 or more single/$768,701 or more married filing jointly.
The child tax credit is expected to remain at $2,200 for 2026.
Standard Deduction
It will rise from $15,750 to $16,100 for individuals in 2026. For married filing jointly, it will rise from $31,500 to $32,200. Most filers save money by taking that instead of itemizing deductions like charitable contributions, medical expenses, etc.
Capital gains
For 2026, the 0 percent rate will apply to single filers with taxable income up to $49,450, and for married couples with incomes up to $98,900.
Estate and gift-tax thresholds
The new tax law sets the federal estate tax exclusion at $15 million for deaths in 2026, up from the $13.99 million this year. A separate annual limit on tax-free gifts is $19,000 for 2026, same as this year. That doesn’t count toward the overall $15 million that can be given during life or at death.
This information was part of a story published in The Wall Street Journal in October.