The United States taxes income in seven bands for the 2026 tax year: 10 per cent, then 12, 22, 24, 32, 35 and 37 per cent, and each rate applies only to the income that falls inside its own band. A single filer earning $120,000 therefore does not pay 24 per cent on the whole amount; they pay 10 per cent on the first $12,400 of taxable income, 12 per cent on the next slice, and 24 per cent only on what is left at the top. The standard deduction, $15,000 for a single filer in 2026, is subtracted before any of this begins, which is why the effective rate someone actually pays is always well below the marginal rate attached to their bracket. This guide sets out every threshold for every filing status, works through an example, and explains the FICA deductions that sit outside the bracket structure entirely.
2026 Federal Tax Brackets - Single Filer
| Tax Rate | Income Range | Tax on Bracket |
|---|---|---|
| 10% | $0 - $12,400 | $1,240 |
| 12% | $12,400 - $50,400 | $4,560 |
| 22% | $50,400 - $105,700 | $12,166 |
| 24% | $105,700 - $201,775 | $23,058 |
| 32% | $201,775 - $256,225 | $17,424 |
| 35% | $256,225 - $640,600 | $134,531 |
| 37% | $640,600 - No limit | Varies |
2026 Federal Tax Brackets - Married Filing Jointly
| Tax Rate | Income Range |
|---|---|
| 10% | $0 - $24,800 |
| 12% | $24,800 - $100,800 |
| 22% | $100,800 - $211,400 |
| 24% | $211,400 - $403,550 |
| 32% | $403,550 - $512,450 |
| 35% | $512,450 - $768,700 |
| 37% | $768,700 - No limit |
Standard Deductions for 2026
Before applying tax brackets, you subtract the standard deduction from your gross income:
- Single: $16,100
- Married Filing Jointly: $32,200
- Married Filing Separately: $16,100
- Head of Household: $24,150
How Progressive Brackets Work
A common misconception is that moving into a higher tax bracket means all your income is taxed at that rate. In reality, only the income within each bracket is taxed at that bracket's rate. For example, a single filer earning $60,000 doesn't pay 22% on the entire amount. Instead:
- First $12,400 is taxed at 10% = $1,240
- Next $31,500 ($12,400 to $43,900) at 12% = $3,780
- Total federal tax: $5,020 (effective rate: 8.4% on $60,000 gross, or 11.4% on $43,900 taxable income)
FICA Taxes (Not Included in Brackets Above)
In addition to income tax, you pay FICA taxes: Social Security at 6.2% on income up to $184,500, and Medicare at 1.45% on all income (plus 0.9% on income over $200,000).
Marginal Rate Versus Effective Rate
Two numbers describe the same tax bill, and confusing them is the most expensive mistake in personal tax planning. Your marginal rate is the rate that applies to the next dollar you earn: it is the bracket you are sitting in. Your effective rate is the whole bill divided by your whole income, and it is always lower, because most of your income was taxed in the bands below. The single filer on $60,000 above sits in the 22% bracket but pays an effective 13.5% of gross.
The practical consequence is that a raise never costs you money. Crossing into a higher bracket changes the rate on the income above the threshold and nothing else, so the myth of the raise that leaves you worse off is simply false for income tax. It can be true for means-tested benefits with a hard cut-off, which is a different mechanism and worth checking separately if you receive any.
Which Filing Status Applies to You
Filing status changes the thresholds, not the rates. Married filing jointly doubles most bands, which is why a couple with one earner usually pays less than that same person would alone. Head of household sits between single and joint, and is available to an unmarried person maintaining a home for a qualifying dependant for more than half the year. Married filing separately mirrors the single bands but disqualifies several credits, so it is generally chosen for a specific reason, such as separating liability, rather than to save tax.
What Reduces Taxable Income Before the Brackets Apply
The brackets act on taxable income, not on salary, and several deductions come first. A traditional 401(k) contribution, up to the annual limit, is removed before federal income tax is computed, so a worker in the 24% band saves 24 cents of tax for each dollar contributed. Health savings account contributions behave the same way and also escape FICA when made through payroll. Health insurance premiums paid under a cafeteria plan reduce both income tax and FICA.
Itemising replaces the standard deduction rather than adding to it, so it only pays when mortgage interest, state and local taxes up to the cap, and charitable giving together exceed $15,000 for a single filer or $30,000 for a couple. For most households the standard deduction is larger, which is why the great majority of returns take it.
Why the Brackets Move Every Year
The thresholds and the standard deduction are indexed to inflation and republished by the IRS late in the preceding year. Without that indexation, a pay rise that merely kept pace with prices would push a worker into a higher band and raise their real tax burden, an effect known as bracket creep. The rates themselves are set by statute and change only when Congress changes them, which is why the seven-rate structure has been stable while every threshold has moved.