Expected Tax Brackets for 2026
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Expected Tax Brackets for 2026
The Internal Revenue Service (IRS) adjusts the tax brackets annually to account for inflation. The American Rescue Plan Act of 2021 and the Inflation Reduction Act of 2022 included provisions that will further adjust the tax brackets for 2023 through 2025. However, the IRS has not yet released the expected tax brackets for 2026.
Based on the current inflation rate and the provisions of the American Rescue Plan Act and the Inflation Reduction Act, it is estimated that the tax brackets for 2026 will be as follows:
| Filing Status | Taxable Income | Marginal Tax Rate |
|---|---|---|
| Single | $0 – $12,950 | 10% |
| Single | $12,950 – $41,775 | 12% |
| Single | $41,775 – $89,075 | 22% |
| Single | $89,075 – $170,050 | 24% |
| Single | $170,050 – $215,950 | 32% |
| Single | $215,950 – $539,900 | 35% |
| Single | $539,900+ | 37% |
| Married Filing Jointly | $0 – $25,900 | 10% |
| Married Filing Jointly | $25,900 – $83,550 | 12% |
| Married Filing Jointly | $83,550 – $178,150 | 22% |
| Married Filing Jointly | $178,150 – $215,950 | 24% |
| Married Filing Jointly | $215,950 – $539,900 | 32% |
| Married Filing Jointly | $539,900+ | 35% |
| Head of Household | $0 – $19,400 | 10% |
| Head of Household | $19,400 – $56,100 | 12% |
| Head of Household | $56,100 – $89,075 | 22% |
| Head of Household | $89,075 – $170,050 | 24% |
| Head of Household | $170,050 – $215,950 | 32% |
| Head of Household | $215,950 – $539,900 | 35% |
| Head of Household | $539,900+ | 37% |
It is important to note that these are just estimates and the actual tax brackets for 2026 may be different. The IRS will release the official tax brackets for 2026 later this year.
How to Prepare for the Expected Tax Brackets
If you are expecting your income to change in 2026, you may want to start planning now to minimize your tax liability. Here are a few tips:
- Contribute to a retirement account. Contributions to a traditional IRA or 401(k) plan can reduce your taxable income for the year.
- Make estimated tax payments. If you expect to owe more than $1,000 in taxes, you may need to make estimated tax payments throughout the year.
- Itemize your deductions. If your itemized deductions are greater than the standard deduction, you may want to itemize your deductions on your tax return.
- Consider a tax-saving investment. There are a number of tax-saving investments available, such as municipal bonds and certain types of life insurance policies.
By planning ahead, you can minimize your tax liability and keep more of your hard-earned money.
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