US Federal Income Tax Brackets for 2026: How Marginal and Effective Rates Really Work
Last reviewed October 8, 2026. Figures come from the IRS release of 2026 inflation adjustments. We recomputed every example below ourselves; sources are listed at the end.
One of the most persistent tax myths is that a raise can "push you into a higher bracket" and leave you with less take-home pay than before. It cannot. The US federal income tax is progressive and marginal: each rate applies only to the slice of income that falls inside its bracket. This guide explains how that works with the 2026 numbers, walks through a full calculation, and shows how to tell your marginal rate from your effective rate.
The 2026 brackets
The rates for 2026 are unchanged at 10%, 12%, 22%, 24%, 32%, 35% and 37%. What changes each year is the income range each rate covers, which is adjusted for inflation. These are the thresholds of taxable income for 2026:
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | up to $12,400 | up to $24,800 |
| 12% | $12,400 to $50,400 | $24,800 to $100,800 |
| 22% | $50,400 to $105,700 | $100,800 to $211,400 |
| 24% | $105,700 to $201,775 | $211,400 to $403,550 |
| 32% | $201,775 to $256,225 | $403,550 to $512,450 |
| 35% | $256,225 to $640,600 | $512,450 to $768,700 |
| 37% | over $640,600 | over $768,700 |
The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.
Notice that the brackets apply to taxable income, not to your salary. Taxable income is roughly what is left after you subtract the standard deduction (or itemized deductions) and certain adjustments such as pre-tax retirement contributions.
Marginal rate versus effective rate
Two numbers get confused all the time:
- Your marginal rate is the rate on your last dollar of taxable income. It is the bracket you are "in".
- Your effective rate is your total tax divided by your total income. It is always lower than your marginal rate, because the lower slices of income were taxed at lower rates.
The effective rate is the better number for judging your overall burden. The marginal rate is the better number for deciding what a raise, a bonus or an extra contribution is worth.
A full worked example
Take a single filer with a salary of $85,000 and no other adjustments, using the standard deduction.
Step 1: taxable income. 85,000 − 16,100 = 68,900.
Step 2: tax each slice.
- First 12,400 at 10% = 1,240
- Next 38,000 (12,400 to 50,400) at 12% = 4,560
- Remaining 18,500 (50,400 to 68,900) at 22% = 4,070
Step 3: add them up. 1,240 + 4,560 + 4,070 = $9,870.
What the numbers mean.
- Marginal rate: 22%, because the last dollars fall in the 22% bracket.
- Effective rate on taxable income: 9,870 ÷ 68,900 = 14.3%.
- Effective rate on the full $85,000: 9,870 ÷ 85,000 = 11.6%.
Notice that only $18,500 of this income is taxed at 22%. The first $50,400 of taxable income was taxed at 10% and 12%.
What a raise really does
Suppose this person gets a $5,000 raise to $90,000. Taxable income becomes 73,900, and the extra $5,000 is entirely in the 22% bracket. Federal income tax rises by 5,000 × 22% = $1,100, to $10,970.
So the raise nets $3,900 before other taxes. You keep more, never less. The idea that a raise could leave you worse off comes from not realizing that only the additional income is taxed at the higher rate.
Payroll taxes work separately, so a raise also brings 7.65% more in Social Security and Medicare (up to the Social Security wage limit), and state income tax may apply. Even so, the raise remains a raise.
Where deductions and credits come in
A deduction reduces taxable income, so its value depends on your bracket. A $1,000 deduction saves $220 for someone in the 22% bracket but $100 for someone in the 10% bracket.
A credit reduces tax itself, dollar for dollar. A $1,000 credit saves $1,000 regardless of bracket, which is why credits are generally more valuable than deductions of the same size.
Pre-tax contributions to a traditional 401(k) or HSA are the most common way to cut taxable income. Putting $5,000 into a traditional 401(k) when you are in the 22% bracket reduces federal income tax by about $1,100 this year.
Married filing jointly
For couples, the brackets are roughly double those for single filers, up to the point where the top brackets begin to differ. A couple earning a combined $170,000 who take the $32,200 standard deduction have taxable income of $137,800, which is partly in the 22% bracket (above $100,800) and partly below it, and their marginal rate is 22%.
What this calculation leaves out
The example is deliberately simple. Actual federal taxes can also involve:
- Payroll taxes (Social Security and Medicare) taken from each paycheck.
- State and local income taxes, which vary widely.
- Capital gains and qualified dividends, which have their own lower rates.
- Itemized deductions, tax credits such as the child tax credit, and other adjustments.
- Self-employment tax for the self-employed.
Withholding on your paycheck is an estimate. If too little was withheld, you owe the difference at filing time; if too much, you get a refund. A refund is not a bonus, it is your own money returned.
Quick answers
Does earning more ever reduce my take-home pay because of brackets? No. Moving into a higher bracket only taxes the income above the threshold at the higher rate. Some benefits that phase out at certain incomes can create situations where an extra dollar costs more than its marginal rate, but that comes from the benefit rules, not the brackets.
Is it better to get a refund or owe a little? Neither is a "win". A large refund means you lent the government money interest-free during the year, and owing means you under-withheld. Adjusting your Form W-4 can fix the balance.
How can I estimate my own tax? Subtract your standard deduction from your income, then apply each bracket in turn as above. Our US federal income tax calculator does this and shows an estimate of any refund or amount owed, and the paycheck calculator shows how this fits into your take-home pay.
How we checked these numbers
We read the 2026 figures directly from the IRS release of inflation adjustments, then recalculated every example by hand and again with a script, and tested the same inputs in our own calculators. If you find a figure that no longer matches the IRS, tell us through the contact page and we will correct it.
This article is general information and an illustration of the arithmetic. It is not tax advice, and your own situation may differ. Consult a tax professional or the IRS for decisions about your return.