2026 IRS Limits

2026 federal income tax brackets, capital gains, and standard deduction.

READ6 min · UPDATED2026-09-25

Follow the source links and check their dates, definitions and scope.

The IRS publishes inflation-adjusted brackets each fall in a Revenue Procedure. The 2026 numbers reflect both the standard inflation indexing and the permanence of the 2017 Tax Cuts and Jobs Act (TCJA) rate structure under the One Big Beautiful Bill Act signed July 4, 2025. Each figure has a verify badge.

The 2026 rates are unchanged at 10% through 37%; only the dollar cutoffs moved up with inflation. A single filer's 22% bracket now ends at $105,700; married filing jointly at $211,400. The standard deduction is $16,100 single / $32,200 MFJ. Long-term capital gains keep their separate 0% / 15% / 20% brackets.

All seven rates survived: the 2017 law's rate structure is now permanent, so 2026 is inflation indexing, not a rate change. Every threshold on this page is the final published figure from IRS Rev. Proc. 2025-32.
Marginal is not effective: crossing $105,700 (single) puts only the dollars above that line into the 24% bracket, never your whole income.
The standard deduction comes off first, so a single filer's first $16,100 of income is taxed at 0% before the brackets even start.
Long-term gains stack on top of ordinary income in their own brackets: the 0% rate runs to $49,450 of taxable income single / $98,900 MFJ, the most underused planning window in the code.

This page covers personal finance fundamentals that apply regardless of your view on Bitcoin or fiat currency.

This page covers US federal income tax. State income tax is separate and varies widely. Outside the US, bracket structures and rates differ.

THE SHORT VERSION

Seven federal income brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) survived the TCJA expiration via OBBBA. Long-term capital gains stay at 0% / 15% / 20%. The 2026 standard deduction is $16,100 single, $32,200 married filing jointly, $24,150 head of household. Income inside a lower bracket is taxed at that lower rate even if some of your income falls in a higher bracket. "Marginal rate" is the rate on your last dollar; "effective rate" is what you pay overall.

Ordinary income brackets, 2026

These are the rates applied to wages, salaries, self-employment income, short-term capital gains, interest income, and non-qualified dividends. Brackets are inflation-adjusted from 2025 under IRS Rev. Proc. and reflect TCJA rates made permanent by OBBBA verify×DON'T TRUST, VERIFYClaim: 2026 federal ordinary income brackets follow TCJA's rate schedule, made permanent by the One Big Beautiful Bill Act (July 4, 2025), and inflation-adjusted in the annual IRS Revenue Procedure.Verify at: IRS Rev. Proc. for tax year 2026 ↗ · Tax Foundation summary ↗IRS publishes the official Rev. Proc. each fall. Confirm exact thresholds against the source before filing..

Seven buckets on descending steps; water fills the first two, partly fills the third and leaves the rest empty. — Taxable income fills the brackets in order, and only the dollars that spill past a threshold pay the next rate. For a single filer in 2026, crossing $105,700 puts only the dollars above that line into the 24% bracket.

Single filer

10% · $0 to $12,400
12% · $12,401 to $50,400
22% · $50,401 to $105,700
24% · $105,701 to $201,775
32% · $201,776 to $256,225
35% · $256,226 to $640,600
37% · $640,601 and above

Married filing jointly

10% · $0 to $24,800
12% · $24,801 to $100,800
22% · $100,801 to $211,400
24% · $211,401 to $403,550
32% · $403,551 to $512,450
35% · $512,451 to $768,700
37% · $768,701 and above

Head of household brackets are between single and MFJ. Married filing separately uses the married-filing-jointly schedule with thresholds halved. These are the final published figures from IRS Rev. Proc. 2025-32 for tax year 2026.

Long-term capital gains brackets, 2026

Assets held longer than 12 months get preferential capital gains treatment: 0%, 15%, or 20% depending on taxable income. These are independent of the ordinary income brackets but stack on top of ordinary income when calculating which bracket your gains fall into verify×DON'T TRUST, VERIFYClaim: 2026 long-term capital gains rates remain 0% / 15% / 20%, made permanent by OBBBA.Verify at: IRS Topic 409: Capital Gains and Losses ↗Capital gains rates have been permanent at 0/15/20 since 2013; OBBBA preserved this structure. Confirm thresholds against IRS Rev. Proc..

2026 LTCG THRESHOLDS (TAXABLE INCOME)

0% rate (single): up to ~$49,450
0% rate (MFJ): up to ~$98,900
15% rate (single): ~$49,451 to ~$545,500
15% rate (MFJ): ~$98,901 to ~$613,700
20% rate (single): above ~$545,500
20% rate (MFJ): above ~$613,700

The 0% bracket is the most underused tool in the tax code. In years where total taxable income (including the gain) stays under the threshold, long-term gains are realized completely tax-free. This is the basis of tax-gain harvesting.

The mental model that ties Stack 1 and Stack 2 together, and the worked examples for "$60K LTCG with no income" vs "$60K LTCG stacked on $50K wages", lives at the two-stack model. Most retail investors do not realize how the real marginal cost of a side job interacts with the LTCG bracket they were sitting in.

NIIT and AMT thresholds

The Net Investment Income Tax (NIIT) adds 3.8% to investment income above approximately $200,000 (single) / $250,000 (MFJ) of modified AGI. Bitcoin capital gains, dividends, interest, and rental income are all NIIT-eligible. The Alternative Minimum Tax (AMT) applies to taxpayers with large preference items (mostly ISO exercises and some itemized deductions).

For most W-2 households earning under $200K, NIIT and AMT are non-issues. For high earners with equity compensation or large capital gains, they are not. See NIIT and AMT for the full mechanics.

Standard deduction, 2026

2026 STANDARD DEDUCTION

Single: $16,100
Married filing jointly: $32,200
Head of household: $24,150
Married filing separately: $16,100
Additional for age 65+ or blind: $2,050 (single/HoH) or $1,650 (MFJ/MFS), per condition

OBBBA raised the standard deduction meaningfully versus the pre-2018 baseline. Compared with 2025 figures ($15,750 single / $31,500 MFJ, post-OBBBA retroactive boost), the 2026 numbers add roughly $350 single / $700 MFJ. The combination of higher standard deduction and lower bracket rates means most households pay materially less under post-OBBBA law than they would have if TCJA had expired as scheduled.

Marginal vs effective rate

The marginal bracket rate applies to the next dollar of ordinary taxable income, not every dollar you earn. An effective rate is an average, but its denominator must be labeled: federal income tax divided by gross income differs from federal income tax divided by taxable income. Both are shown here. Payroll, state and local taxes are excluded. ^[C2]

WORKED EXAMPLE: $100,000 SINGLE FILER

Taxable income after the $16,100 standard deduction: $83,900. Tax is computed across brackets, not by applying 22% to all of it:

First ~$12,400 at 10% = ~$1,240
Next ~$38,000 at 12% = ~$4,560
Remaining ~$33,500 at 22% = ~$7,370

Total federal income tax in this simplified 2026 example: $13,170. That is 13.17% of gross income ($13,170 ÷ $100,000), or 15.70% of taxable income ($13,170 ÷ $83,900), rounded to two decimals. The marginal ordinary-income bracket is 22%; another $1,000 of ordinary taxable income adds $220 of federal income tax under these assumptions. ^[C2]

Marginal vs effective federal income tax rate by wages, single filer, 2026

IRS Rev. Proc. 2025-32, Table 3 brackets and the $16,100 standard deduction. Effective rate = federal income tax ÷ gross wages. Wages only; no credits, payroll or state tax. Nominal 2026 dollars.

At $100,000 of wages the next dollar is taxed at 22%, but the whole bill is $13,170, or 13.17% of wages, because each rate only applies to the dollars inside its bracket. Above the $16,100 standard deduction, the effective rate is always below the marginal rate. The 37% rate starts at $656,700 of wages, past the right edge. Run your own number in the tax bracket calculator.

Common questions

Did TCJA expire at the end of 2025?

No. Congress made the TCJA individual rates and standard deduction permanent through the One Big Beautiful Bill Act, signed July 4, 2025. The seven brackets (10/12/22/24/32/35/37) continue through 2026 and beyond.

How are Bitcoin gains taxed in 2026?

Held over 12 months: long-term capital gains rates (0/15/20). Held under 12 months: ordinary income rates above. The Net Investment Income Tax (3.8%) applies to investment income above $200K single / $250K MFJ. See Bitcoin taxes.

What is the lowest bracket I can be in?

After the standard deduction, the first ~$12,400 (single) of taxable income is at 10%. With no other income, you can earn up to $28,500 ($16,100 standard deduction + $12,400 at 10%) and pay no more than $1,240 of federal income tax.

Are the bracket thresholds indexed for inflation?

Yes. The IRS publishes adjusted thresholds each fall under Revenue Procedure. Chained CPI is the indexing measure used since TCJA, which runs slightly lower than headline CPI.

How do state taxes work on top of federal?

State income tax is independent of federal. Nine states have no state income tax (TX, FL, WA, NV, SD, WY, AK, TN, NH). The rest range from approximately 3% to 13% top rate. See state domicile for high-earner relocation math.

2026 contribution limits · 401k, IRA, HSA, FSA, super catch-up
All 2026 financial numbers
After OBBBA: what the post-2025 tax code looks like
NIIT and AMT · the two taxes that surprise high earners
Tax-gain harvesting · using the 0% LTCG bracket
Bitcoin taxes

Worked-example assumptions

Single filer, under 65, $100,000 of ordinary wage income, no adjustments, no credits, no other deductions, and the $16,100 basic standard deduction for 2026. Taxable income is $83,900. Bracket arithmetic is $1,240 + $4,560 + $7,370 = $13,170. This is a federal income-tax illustration, not a total paycheck tax or withholding estimate; credits, preferential-rate income and phase-outs can change the result. ^[C2]

Sources

Internal Revenue Service, Revenue Procedure for tax year 2026 (annual inflation adjustments) · irs.gov
Internal Revenue Service, Topic 409: Capital Gains and Losses · irs.gov/taxtopics/tc409
Internal Revenue Service, Topic 559: Net Investment Income Tax · irs.gov/taxtopics/tc559
Public Law 119-21 (One Big Beautiful Bill Act, July 4, 2025), individual income tax provisions · congress.gov

Sources for these corrections

US federal sources checked September 17, 2026. C-prefixed citations distinguish these corrections from the original article’s references.

[C2] 26 CFR 601.602: Tax forms and instructions.

Last updated 2026-09-25. Not financial advice. Do your own research.