New 2026 tax brackets are right here: What increased thresholds and an even bigger customary deduction imply for paychecks and the highest 1%

For many households, the usual deduction rises once more, which can scale back taxable earnings earlier than the brackets even apply, and excessive earners will proceed to face a 37% high charge however at barely increased earnings thresholds than in 2025.

The 2026 brackets

• For 2026, the tax charges stay 10%, 12%, 22%, 24%, 32%, 35%, and 37%, with inflation-adjusted thresholds that decide how a lot earnings is taxed at every charge slightly than taxing all earnings at a single charge.​
• Single filers reach the 12% bracket above $12,400, 22% above $50,400, 24% above $105,700, 32% above $201,775, 35% above $256,225, and the top 37% rate above $640,600 in 2026.
• The corresponding married filing jointly thresholds are $24,800, $100,800, $211,400, $403,550,  $512,450, and $768,700.​
• These thresholds rise to reduce bracket creep as prices and wages move, and press coverage pegs the broad pattern as roughly 4% increases for lower brackets and around 2% to 3% at higher levels compared with 2025, a common feature of the IRS’ annual inflation process.

• The standard deduction for 2026 is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household, reflecting both routine inflation indexing and specific changes embedded in the new law.​
• The law also bumped the 2025 standard deduction to $15,750 for single filers and $31,500 for joint filers—an increase that carries into the 2026 baseline—before the new 2026 figures take effect on returns filed in 2027

• Most workers will see a small reduction in taxable income due to the higher standard deduction, and more of their pay will be taxed in lower brackets thanks to the shifted thresholds, which together help offset inflation’s push into higher nominal incomes.​
• The changes are designed to keep taxpayers from drifting into higher rates without real after-inflation income gains, so annual bracket adjustments typically translate into a modest paycheck boost or a slightly smaller tax bill at filing time.

• The top marginal rate stays at 37% but begins at higher income levels—above $640,600 for single filers and $768,700 for joint filers—so high earners also benefit from bracket shifts, albeit modestly compared with their overall liability.​
• Beyond extraordinary earnings, OBBBA made everlasting a number of TCJA-era features that matter to prosperous taxpayers, and it prolonged and reshaped different provisions, interacting with property planning and high-bracket itemized deduction limits in ways in which name for recent planning.​

• OBBBA permanently units the federal property and reward tax exemption at $15 million per individual starting in 2026, listed to inflation, a big change from the prior scheduled reversion that stabilizes long-horizon wealth planning for households with giant estates.​
• That permanence creates durable room for transfers into trusts and other structures while aligning with the 2026 bracket landscape, making 2026 a key year to revisit estate strategies and potential gifting windows.​

• Fortune previously detailed how OBBBA cements TCJA-era particular person charge structure and boosts the usual deduction in 2025, framing the legislation’s household-level influence and distributional tilt as favoring increased earners based on unbiased modeling cited in our reporting.​
• Budget watchdogs have highlighted broader fiscal implications and the invoice’s “sugar excessive” danger, linking tax cuts and spending decisions to debt trajectories and future coverage trade-offs that form the 2026 tax bracket surroundings.

For this story, Fortune used generative AI to assist with an preliminary draft. An editor verified the accuracy of the knowledge earlier than publishing.