2026 Federal Tax Brackets: Rates, Thresholds & Strategies
A single filer earning $100,000 in 2026 pays $13,170 in federal income tax — an effective rate of 13.2%, not the 22% marginal rate most people assume. That 8.8-percentage-point gap is the most expensive misunderstanding in personal finance, and it costs people real money every time they turn down overtime, a bonus, or a side gig because they think they'll "move into a higher bracket." The One Big Beautiful Bill Act, signed in July 2025, made the Tax Cuts and Jobs Act's individual rates permanent and pushed bracket thresholds higher than originally projected. The 2026 standard deduction jumps to $16,100 for single filers and $32,200 for married couples — meaning a couple's first $32,200 of income faces zero federal tax. Combined with wider bracket ranges, a new $6,000 senior deduction, and IRA limits bumped to $7,500, the 2026 code is the most taxpayer-friendly in a decade. Updated April 25: Most articles on tax brackets stop at ordinary income. They shouldn't. Long-term capital gains run on a parallel — and far gentler — bracket system: an MFJ couple can realize up to $98,900 of qualified gains at a 0% federal rate. Below, we cover both bracket systems, the AMT exemptions that have shrunk AMT to a near-extinct tax for wage earners, and the 3.8% Net Investment Income Tax cliff that's pulling more households in every year. Use our tax calculator to model your specific situation.