Assumptions
- Data file src/data/rates/us-2026.json (reviewed 2026-09-06). Taxable income after deductions; examples ignore credits.
How it is calculated
Examples
Common mistakes
- Married filing separately uses the single brackets up to the 35% band and a $384,350 threshold for 37%; not shown.
- Alternative minimum tax and the 3.8% NIIT can apply on top of these rates for high incomes.
FAQ
How do tax brackets work?
Brackets are marginal: only the income inside each band is taxed at that rate. A single filer with $75,000 of taxable income pays 10% on the first $12,400, 12% up to $50,400 and 22% on the rest, for $11,212 total (14.9% effective), not 22% of everything.
What changed for 2026?
All thresholds were indexed for inflation (about 2.7%) and the standard deduction rose to $16,100 single, $32,200 joint and $24,150 head of household. The One Big Beautiful Bill made the 2017 rates permanent, so the 37% top rate stays; it begins at $640,600 single / $768,700 joint in 2026.
Taxable income vs gross income?
Taxable income = gross income − adjustments (401(k), HSA, ½ SE tax, student loan interest) − standard or itemized deduction − QBI. The brackets apply to taxable income, so a $100,000 salary with the standard deduction is $83,900 taxable for a single filer.
Do these apply to capital gains?
No. Long-term capital gains and qualified dividends use separate 0% / 15% / 20% brackets (0% up to $49,450 single in 2026) plus the 3.8% net investment income tax over $200,000. Short-term gains use these ordinary brackets.