How the brackets stack
US federal income tax has seven brackets, and the crucial point is that each rate applies only to the income sitting inside its own band. Reaching the 22% bracket does not mean 22% of everything you earn.
Take $60,000 of 2026 taxable income filing single: the first $12,400 is taxed at 10% for $1,240, the next $38,000 at 12% for $4,560, and the remaining $9,600 at 22% for $2,112 — $7,912 in total. That is an effective rate of 13.2%, not 22%.
Taxable income is not gross income. Start from gross, subtract pre-tax contributions such as a 401(k), then subtract the larger of the standard deduction or your itemized total. For 2026 the standard deduction is $16,100 single, $32,200 married filing jointly and $24,150 head of household.
The moment people misread a bracket
The idea that a raise into the next bracket leaves you worse off is simply false. Only the dollars above the threshold are taxed at the higher rate, so after-tax income never falls. People genuinely turn down overtime and raises over this misunderstanding.
There is less reason to itemise than there used to be. The standard deduction rose sharply while the state and local tax deduction is capped at $40,400 for 2026, so unless mortgage interest is substantial the standard deduction wins. This calculator picks the larger automatically.
Tax credits are not included here. The Child Tax Credit subtracts $2,200 per child directly from tax owed, and the Earned Income and education credits work the same way. A deduction reduces taxable income while a credit reduces the tax itself, and that difference matters a great deal.
2026 federal income tax brackets
Each rate applies only to the slice of taxable income inside its range. These are the ranges for tax year 2026 — income earned in 2026, reported on returns filed in 2027 — from IRS Revenue Procedure 2025-32. Married filing separately matches single except that its 35% bracket ends at $384,350 instead of $640,600.
| Rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
| 10% | Up to $12,400 | Up to $24,800 | Up to $12,400 | Up to $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $12,400 – $50,400 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $50,400 – $105,700 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,775 | $105,700 – $201,750 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,775 – $256,225 | $201,750 – $256,200 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,225 – $384,350 | $256,200 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $384,350 | Over $640,600 |
2026 standard deduction
The standard deduction comes off before the brackets apply, and you take it unless your itemized deductions are larger; this calculator picks the larger automatically. Filers who are 65 or older, or blind, add an extra amount for each condition and each person, and the extra is larger for unmarried filers.
Separately, for 2025 through 2028 each person 65 or older can deduct another $6,000 whether or not they itemize. It shrinks by 6% of modified AGI above $75,000 ($150,000 on a joint return), and married couples must file jointly to claim it.
| Filing status | Standard deduction | Extra per person 65+ or blind |
|---|---|---|
| Single | $16,100 | $2,050 |
| Married filing jointly | $32,200 | $1,650 |
| Married filing separately | $16,100 | $1,650 |
| Head of household | $24,150 | $2,050 |
Federal tax at several incomes
The table runs this calculator with the standard deduction, no pre-tax contributions and no credits, for a Texas resident so that only federal tax shows. The effective rate is tax divided by gross income; the marginal rate is the bracket your last dollar falls in. A married couple pays less on the same income because the joint standard deduction and every joint bracket through 32% are exactly twice the single amounts.
| Gross income | Single: tax | Single: effective / marginal | Joint: tax | Joint: effective / marginal |
|---|---|---|---|---|
| $40,000 | $2,620 | 6.55% / 12% | $780 | 1.95% / 10% |
| $60,000 | $5,020 | 8.37% / 12% | $2,840 | 4.73% / 12% |
| $85,000 | $9,870 | 11.61% / 22% | $5,840 | 6.87% / 12% |
| $120,000 | $17,570 | 14.64% / 22% | $10,040 | 8.37% / 12% |
| $200,000 | $36,734 | 18.37% / 24% | $26,340 | 13.17% / 22% |
| $400,000 | $103,134 | 25.78% / 35% | $73,468 | 18.37% / 24% |
What changed for 2026
The 2025 reconciliation law (Public Law 119-21) made the seven individual rates, from 10% to 37%, permanent. The dollar ranges above are the usual inflation adjustment for 2026.
The cap on the state and local tax (SALT) deduction is $40,400 for 2026 ($20,200 married filing separately). It shrinks by 30% of modified AGI above $505,000 but never below $10,000. In the top bracket a new rule trims itemized deductions by 2/37, so each deducted dollar saves about 35 cents instead of 37.
New deductions for 2025 through 2028 are taken whether or not you itemize: qualified tips up to $25,000, the overtime premium up to $12,500 ($25,000 joint), and $6,000 for each person 65 or older, each phasing out at higher incomes. The child tax credit is $2,200 for each child under 17. This calculator shows tax before those items; the tax refund calculator applies all of them.