Tax brackets and income rates 2026

The IRS announced new federal income tax brackets and standard deductions for 2026.

In its announcement Thursday, the agency raised the income thresholds for each bracket, which apply to the 2026 tax year for returns filed in 2027.

The IRS also increased the numbers for other provisions, including long-term capital gains brackets, estate and gift tax exemption, and eligibility for the earned income tax credit, among others.

For 2026, the top rate of 37% applies to individuals with taxable income above $640,600 and to married couples filing jointly earning $768,700 or more for 2026.

Federal income tax brackets show how much you owe on each part of your “taxable income,” which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

The standard deduction will also increase in 2026, to $32,200 for married couples filing jointly, up from $31,500 in 2025. Starting in 2026, single filers can claim $16,100, an increase from $15,750.

The IRS announcements come a day after the agency said it would furlough nearly half of its workforce due to the ongoing government shutdown.