2026 Tax Brackets, Standard Deduction, and What Changed

Straight answer: for 2026 returns (the ones you file in early 2027), the standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household, and the seven tax rates stay at 10% to 37% with brackets nudged up for inflation. The bigger story is the new deductions from the One Big Beautiful Bill Act. A $6,000 senior deduction, a $40,400 SALT cap, car loan interest, and a charity deduction for people who don't itemize all show up on 2026 returns.

Here's every number that matters, then what it means for your situation. All figures are as of October 2026 and come from IRS releases unless noted.

What are the 2026 tax brackets?

The IRS published the 2026 numbers in its October 2025 inflation-adjustment release (Rev. Proc. 2025-32). These apply to taxable income, meaning income after your standard or itemized deduction.

Rate	Single	Married filing jointly	Head of household
10%	$0 to $12,400	$0 to $24,800	$0 to $17,700
12%	$12,400 to $50,400	$24,800 to $100,800	$17,700 to $67,450
22%	$50,400 to $105,700	$100,800 to $211,400	$67,450 to $105,700
24%	$105,700 to $201,775	$211,400 to $403,550	$105,700 to $201,750
32%	$201,775 to $256,225	$403,550 to $512,450	$201,750 to $256,200
35%	$256,225 to $640,600	$512,450 to $768,700	$256,200 to $640,600
37%	Over $640,600	Over $768,700	Over $640,600

Remember these are marginal rates. Moving into a higher bracket only taxes the dollars above the line at the higher rate, not your whole income.

What is the 2026 standard deduction?

Filing status	2026 standard deduction
Single or married filing separately	$16,100
Married filing jointly	$32,200
Head of household	$24,150

If you're 65 or older or blind, you add $1,650 per qualifying person if married, or $2,050 if unmarried. That's the long-standing extra amount. The new senior deduction below is separate and stacks on top.

What changed from the One Big Beautiful Bill Act?

The law (signed July 4, 2025, and now branded by the IRS as the "Working Families Tax Cuts") made the lower rates permanent and added several temporary deductions. The IRS summarizes them on its individuals and workers provisions page, and Publication 505 (2026) has the 2026 figures.

Child tax credit. Up to $2,200 per qualifying child, with up to $1,700 refundable. Full credit up to $200,000 of income ($400,000 joint). You (and your spouse, if filing jointly) and each child need a Social Security number valid for employment. The credit for other dependents stays at $500.

$6,000 senior deduction. Each person 65 or older (for 2026, born before January 2, 1962) can deduct $6,000, or $12,000 if both spouses qualify. You get it whether or not you itemize. It phases out at 6% of modified AGI above $75,000 ($150,000 joint). Runs 2025 through 2028.

SALT cap. The state and local tax deduction limit is $40,400 for 2026 ($20,200 married filing separately), up from the old $10,000. It shrinks by 30 cents per dollar of modified AGI over $505,000 ($252,500 MFS), but never below $10,000 ($5,000 MFS). It's scheduled to drop back to $10,000 in 2030.

Car loan interest. Up to $10,000 a year of interest on a loan for a new vehicle bought for personal use, with final assembly in the United States, on a loan taken out after December 31, 2024. Cars, SUVs, minivans, pickups, and motorcycles under 14,000 pounds count. Phases out above $100,000 of modified AGI ($200,000 joint). Runs 2025 through 2028. You don't need to itemize.

Tips and overtime. Up to $25,000 of qualified tips and up to $12,500 of qualified overtime premium pay ($25,000 joint) can be deducted, both phasing out above $150,000 ($300,000 joint), through 2028. The details are tricky, so we cover them in how to claim no tax on tips and overtime.

Charity for non-itemizers (new for 2026). Even if you take the standard deduction, you can deduct up to $1,000 of cash gifts to qualified charities, or $2,000 joint. Gifts to donor-advised funds don't count.

0.5% floor for itemizers (new for 2026). If you itemize, only charitable giving above 0.5% of your AGI is deductible. With $100,000 of AGI, the first $500 of gifts gets no deduction.

Cap for the top bracket (new for 2026). If you're in the 37% bracket, itemized deductions are trimmed so they're worth at most about 35 cents per dollar.

Child and dependent care credit. For 2026, the top credit rate rises from 35% to 50% for lower-income families. The expense limits stay at $3,000 for one dependent and $6,000 for two or more.

Energy and EV credits ended. The new and used clean vehicle credits ended for vehicles acquired after September 30, 2025. The home energy improvement credit and the residential clean energy (solar) credit ended for work done after December 31, 2025. Don't plan on them for 2026.

Did the 1099-K and 1099-NEC rules change?

Yes, both in your favor on paperwork, though not on what's taxable.

• Form 1099-K: Payment apps and marketplaces only have to send one when you receive more than $20,000 across more than 200 transactions. The law reinstated the pre-2022 threshold retroactively (IRS 1099-K FAQs).
• Form 1099-NEC and 1099-MISC: The reporting threshold rose from $600 to $2,000 for payments made after December 31, 2025, and will be indexed for inflation after 2026 (IRS instructions).

The catch: all of that income is still taxable whether or not a form shows up. Fewer forms means you need better records of your own. If your side income is already a tangle, see how to clean up a messy 1099 year.

What is the 2026 EITC?

The maximum Earned Income Tax Credit for 2026, per Rev. Proc. 2025-32:

Qualifying children	Maximum credit
None	$664
One	$4,427
Two	$7,316
Three or more	$8,231

The credit phases out as income rises, and the exact cutoff depends on filing status and number of children. Most EITC-eligible households also qualify for free filing through VITA or IRS Free File.

What are the 2026 401(k), IRA, and HSA limits?

Account	2026 limit
401(k), 403(b), most 457, TSP	$24,500
Catch-up, age 50 and over	$8,000 (so $32,500 total)
Catch-up, ages 60 to 63	$11,250
IRA	$7,500
IRA catch-up, age 50 and over	$1,100
HSA, self-only coverage	$4,400
HSA, family coverage	$8,750
Health FSA	$3,400

The retirement figures come from the IRS's November 2025 announcement. HSA limits come from Rev. Proc. 2025-19. Starting in 2026, bronze and catastrophic marketplace plans also count as HSA-eligible.

Do Trump accounts affect my 2026 return?

Probably only a little. Trump accounts are new tax-favored savings accounts for children. The government puts in a one-time $1,000 for eligible U.S.-citizen children born from January 1, 2025, through December 31, 2028, if a parent makes the election on Form 4547. Contributions couldn't start before July 4, 2026. Family contributions are capped at $5,000 a year, and employers can add up to $2,500 that the employee doesn't pay tax on. If you have a child born in that window and haven't made the election, that's the action item.

What does this mean for you?

W-2 worker. Your bracket thresholds and standard deduction rose a little, so expect a small drop in tax at the same pay. If you earn tips or overtime, or bought a new U.S.-assembled car with a loan, you may have a new deduction even without itemizing. Check your W-4 now if any of these apply. Otherwise your refund may simply get bigger rather than your paychecks.

Retiree. The $6,000 senior deduction is the headline. A single retiree 65 or older with modified AGI under $75,000 can stack $16,100 + $2,050 + $6,000 = $24,150 of deductions before owing anything. Above $75,000 the senior piece shrinks. Pull your tax documents together early, and if your income is modest, check whether you even need to file.

Gig worker or freelancer. You'll likely get fewer 1099s for 2026 because of the $2,000 and $20,000 thresholds. That doesn't change what you owe. Self-employment tax still applies on net earnings, so track income yourself and look at the deductions self-employed people most often miss.

Family with kids. The child tax credit is $2,200 per child, up to $1,700 refundable, and the dependent care credit is more generous for lower incomes. Make sure every child has a valid SSN before you file. If your household income is moderate, VITA may prepare your return free, and IRS Free File is another no-cost route.

Homeowner in a high-tax state. The $40,400 SALT cap may make itemizing worth it again for the first time since 2017. Add up 2026 property tax, state income tax, mortgage interest, and charity, then compare to your standard deduction. Above $505,000 of modified AGI, the cap shrinks toward $10,000. Note the 0.5% charity floor if you itemize, and remember the solar and energy-efficiency credits are gone for 2026 projects.

What still isn't settled?

As of October 2026, the main figures above are final for tax year 2026. What the IRS is still finishing is the paperwork: final 2026 forms and instructions, plus more guidance on tips and overtime reporting. Final forms usually arrive in late fall and early winter. For filing dates, see when tax season starts in 2027.

Want a second set of eyes?

Most people don't need help to use these numbers. But if you've got a new deduction you're not sure you qualify for, or a year with several income sources, a pro can catch what software misses. Here's what tax prep typically costs. If you'd like help with your 2026 return, start with our tax preparation service or tell us your situation and we'll point you to the right option, free ones included.