Federal Tax Guide 2026

For 2026, there are seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 10% bracket applies to taxable income up to $12,400, while the top 37% rate applies to income over $640,600. For married couples filing jointly, the 10% bracket covers income up to $24,800, and the 37% rate kicks in above $768,700.

The 2026 standard deduction is $16,100 for single filers and married individuals filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. Most taxpayers benefit from taking the standard deduction rather than itemizing.

Long-term capital gains (assets held over one year) are taxed at 0%, 15%, or 20% depending on your taxable income. For 2026, single filers pay 0% on gains up to $49,450, 15% up to $545,500, and 20% above that. Married filing jointly: 0% up to $98,900, 15% up to $613,700, and 20% above. Short-term capital gains (assets held one year or less) are taxed as ordinary income at your marginal rate.

Your marginal tax rate is the rate applied to your last dollar of income — it determines which tax bracket you fall into. Your effective tax rate is the average rate you actually pay across all your income, calculated by dividing total tax owed by total taxable income. Because the US uses a progressive tax system, your effective rate is always lower than your marginal rate. For example, a single filer in the 22% bracket does not pay 22% on all income — only on the portion above the 12% bracket threshold.

The deadline to file your 2026 federal tax return is April 15, 2027. You can request an automatic six-month extension using IRS Form 4868, which extends the filing deadline but not the payment deadline — estimated taxes are still due by the original date to avoid penalties and interest.