2026 Tax Changes — Everything You Need to Know

The IRS adjusts federal tax brackets annually for inflation. For 2026, brackets are slightly wider than 2025, meaning many Americans will pay slightly less tax on the same income.

2026 Tax Brackets — Single Filers:

• 10%: $0 – $11,925 (was $11,600 in 2025)
• 12%: $11,926 – $48,475 (was $47,150)
• 22%: $48,476 – $103,350 (was $100,525)
• 24%: $103,351 – $197,300 (was $191,950)
• 32%: $197,301 – $250,525 (was $243,725)
• 35%: $250,526 – $626,350 (was $609,350)
• 37%: over $626,350 (was $609,350)

2026 Tax Brackets — Married Filing Jointly:

• 10%: $0 – $23,850
• 12%: $23,851 – $96,950
• 22%: $96,951 – $206,700
• 24%: $206,701 – $394,600
• 32%: $394,601 – $501,050
• 35%: $501,051 – $751,600
• 37%: over $751,600

Use our free tax calculator to estimate your 2026 federal tax liability with the updated brackets.

The standard deduction for 2026 is higher than 2025, thanks to inflation adjustments. Most Americans (about 90%) claim the standard deduction rather than itemizing.

2026 Standard Deductions:

• Single: $15,000 (up from $14,600 in 2025, +$400)
• Married Filing Jointly: $30,000 (up from $29,200, +$800)
• Married Filing Separately: $15,000 (up from $14,600)
• Head of Household: $22,500 (up from $21,900, +$600)

Additional deduction for age 65+ or blind:

• Single filers: additional $2,000 (was $1,950)
• Married filers: additional $1,600 per qualifying person (was $1,550)

For a married couple where both spouses are 65+, the total standard deduction in 2026 is $33,200 ($30,000 + $1,600 × 2).

See our complete 2026 standard deduction guide for more details.

Social Security Wage Base: The amount of wages subject to Social Security tax (6.2%) increased to $176,100 in 2026, up from $168,600 in 2025. This means higher earners will pay slightly more in Social Security taxes in 2026.

Medicare Tax: No change. Still 1.45% on all wages, with an additional 0.9% for high earners (over $200,000 single / $250,000 married).

Self-Employment Tax: 15.3% total (12.4% SS on net earnings up to $176,100 + 2.9% Medicare). Self-employed can deduct half of SE tax from gross income.

Use our self-employment tax calculator to estimate your 2026 SE tax.

Retirement account contribution limits increased for 2026:

401(k), 403(b), and Most 457 Plans:

• Employee contribution limit: $23,500 (was $23,000 in 2025)
• Catch-up contribution (age 50–59 and 64+): $7,500
• Super catch-up (age 60–63): $11,250 (new SECURE 2.0 provision)
• Total limit including employer contributions: $70,000

IRA Contributions:

• Traditional and Roth IRA limit: $7,000 (unchanged from 2025)
• Catch-up contribution (age 50+): additional $1,000 = $8,000 total

Roth IRA Income Limits:

• Single: phase-out begins at $150,000, eliminated at $165,000
• Married Filing Jointly: phase-out begins at $236,000, eliminated at $246,000

Use our 401k calculator or Roth IRA calculator to model your retirement savings.

Long-term capital gains rates remain the same in 2026 (0%, 15%, 20%), but the income thresholds that trigger each rate have increased slightly for inflation:

0% rate:

• Single: up to $48,350
• Married Filing Jointly: up to $96,700

15% rate:

• Single: $48,351 – $533,400
• Married Filing Jointly: $96,701 – $600,050

20% rate:

• Single: over $533,400
• Married Filing Jointly: over $600,050

Net Investment Income Tax (NIIT): 3.8% additional tax on investment income (dividends, capital gains, passive rental) for single filers with MAGI over $200,000 and married filers with MAGI over $250,000. These thresholds are NOT inflation-adjusted.

Use our capital gains tax calculator to estimate your 2026 investment tax liability.

The Tax Cuts and Jobs Act (TCJA) of 2017 significantly lowered individual tax rates and raised the standard deduction. Many of its provisions were set to expire after 2025 — meaning 2026 could see major tax changes if Congress does not act.

TCJA provisions scheduled to expire in 2026 (if not extended):

• Lower income tax rates (e.g., 22% bracket reverts to 25%, 24% → 28%)
• Higher standard deductions would be cut nearly in half
• $10,000 SALT deduction cap would be removed (benefiting high earners in high-tax states)
• Child Tax Credit reverts from $2,000 to $1,000
• 20% deduction for qualified business income (Section 199A) expires
• Estate tax exemption halves from ~$14M to ~$7M per person

Current status (as of mid-2026): Congress is actively debating TCJA extension as part of broader tax legislation. Multiple scenarios are possible. We will update this guide as the legislative situation evolves.

What this means for you: If the TCJA expires as written, most Americans would see higher tax rates beginning in 2026. If it's extended (fully or partially), the current rates would continue. Tax planning in 2026 requires monitoring this closely — consider consulting a tax professional for strategies that account for either scenario.

Use our salary after tax calculator with the 2026 rates to see your current liability, and watch for updates.