Understanding the 2026 Federal Tax Brackets

The new “One Big Beautiful Bill” has brought changes to the 2026 federal income tax brackets, and it’s important to stay informed. Here’s what you need to know for the upcoming tax year:

2026 Federal Tax Brackets Overview

• 10% for income up to $12,400 (or $24,800 for married couples filing jointly)
• 12% for income over $12,400 (or $24,800 for married couples filing jointly)
• 22% for income over $50,400 (or $100,800 for married couples filing jointly)
• 24% for income over $105,700 (or $211,400 for married couples filing jointly)
• 32% for income over $201,775 (or $403,550 for married couples filing jointly)
• 35% for income over $256,225 (or $512,450 for married couples filing jointly)
• 37% for income over $640,600 (or $768,700 for married couples filing jointly)

Additional Tax Figures for 2026

• The standard deduction rises to $16,100 for single filers and $32,200 for married couples filing jointly.
• The maximum earned income tax credit increases to $8,231 for those with three or more children who qualify.
• The Health Flexible Spending Account (FSA) contribution limit will be $3,400, an increase of $100 from 2025.
• The federal estate tax limit will grow to $15 million per person, up from nearly $14 million in 2025.

These tax changes will apply in 2026, impacting tax returns filed in early 2027. Planning ahead is crucial, especially if you anticipate significant income changes, asset sales, or retirement.

If you want to discuss how these new brackets could impact your financial strategy in 2026, feel free to reach out. We’re here to help!