Every year the IRS publishes inflation-adjusted tax parameters. For 2026, those adjustments arrived alongside a significant legislative change: the One Big Beautiful Bill Act (OBBBA), signed in 2025, permanently extended the Tax Cuts and Jobs Act (TCJA) rate structure that was originally set to expire after December 31, 2025.
Without OBBBA, the top marginal rate would have reset to 39.6%, the standard deduction would have reverted to approximately $8,300, and millions of Americans would have faced automatic tax increases. The bill prevented that — and added several new provisions on top.
The short answer: For 2026, the standard deduction is $16,100 (single) / $32,200 (MFJ). All seven TCJA rates (10%–37%) are now permanent. A new $6,000 senior deduction applies to taxpayers 65+ with income under $75k. Child Tax Credit rises to $2,200 per child.
What the OBBBA Changed for 2026
The OBBBA's most consequential tax changes for individual filers:
| Provision | Before OBBBA (would have been) | Under OBBBA (2026 actual) |
|---|---|---|
| Top marginal rate | 39.6% (TCJA sunset) | 37% (permanent) |
| Standard deduction (single) | ~$8,300 (pre-TCJA reverted) | $16,100 |
| Standard deduction (MFJ) | ~$16,600 (pre-TCJA reverted) | $32,200 |
| Child Tax Credit | $1,000/child (TCJA sunset) | $2,200/child (inflation-indexed) |
| Senior deduction (65+) | Not applicable | $6,000 (AGI ≤ $75k single) |
| QBI deduction (self-employed) | Expired | 20% permanent |
Standard deduction for single filers 2022–2026 — the 2026 jump to $16,100 is the largest single-year increase since TCJA in 2018
The standard deduction increase from $15,000 to $16,100 — a $1,100 jump — is the largest single-year increase since TCJA took effect in 2018. For a single filer in the 22% bracket, that extra $1,100 in deductible income translates to $242 less in federal taxes owed.
The Full 2026 Tax Bracket Table
All rates are applied to taxable income — your gross income after subtracting the standard deduction ($16,100 single / $32,200 MFJ) or itemized deductions, whichever is higher.
| Rate | Single Filer (Taxable Income) | Married Filing Jointly (Taxable Income) |
|---|---|---|
| 10% | $0 – $11,600 | $0 – $23,200 |
| 12% | $11,601 – $47,150 | $23,201 – $94,300 |
| 22% | $47,151 – $100,525 | $94,301 – $201,050 |
| 24% | $100,526 – $191,950 | $201,051 – $383,900 |
| 32% | $191,951 – $243,725 | $383,901 – $487,450 |
| 35% | $243,726 – $609,350 | $487,451 – $731,200 |
| 37% | Above $609,350 | Above $731,200 |
These brackets are marginal — each rate applies only to income within that band. A single filer earning $85,000 does not pay 22% on the entire $85,000. They pay 10% on the first $11,600, 12% on the next $35,550, and 22% on the remaining amount above $47,150 — with the $16,100 standard deduction already subtracted.
Your Actual Tax at Every Income Level
The table below shows calculated federal income tax for a single filer taking the standard deduction in 2026. No credits applied — these are baseline figures.
| Gross Income | Taxable Income | Federal Tax Owed | Effective Rate | Marginal Rate |
|---|---|---|---|---|
| $50,000 | $33,900 | $3,836 | 7.7% | 12% |
| $75,000 | $58,900 | $8,011 | 10.7% | 22% |
| $100,000 | $83,900 | $13,511 | 13.5% | 22% |
| $150,000 | $133,900 | $25,179 | 16.8% | 24% |
| $200,000 | $183,900 | $37,179 | 18.6% | 24% |
2026 federal effective tax rate by gross income (single filer, standard deduction) — most earners pay well below their marginal rate
A frequently misunderstood point: a single filer earning $100,000 has a marginal rate of 22% but an effective rate of only 13.5%. This is because roughly 85% of their income is taxed at 10% or 12%. The marginal rate tells you the cost of one more dollar earned — the effective rate tells you what fraction of your total income actually goes to federal taxes.
Three OBBBA Provisions That Can Affect Your 2026 Return
1. The New $6,000 Senior Deduction
Taxpayers age 65 or older can now claim an additional above-the-line deduction of $6,000 — on top of the standard deduction. Income limits apply: AGI must be at or below $75,000 for single filers, or $150,000 for married filing jointly.
Example: A 68-year-old single filer with $70,000 AGI can deduct $16,100 (standard) + $6,000 (senior) = $22,100 total. Their taxable income becomes $47,900. Federal tax owed: approximately $5,678 — an effective rate of just 8.1%.
The senior deduction phases out for AGI above $75,000 (single). Taxpayers with AGI between $75,000 and $85,000 receive a partial deduction. Above $85,000 (single), the deduction is unavailable.
2. Child Tax Credit at $2,200 — Now Inflation-Indexed
The Child Tax Credit increases to $2,200 per qualifying child under age 17. Importantly, OBBBA made the credit inflation-indexed starting in 2026 — the $2,200 figure will adjust annually with the CPI. This is a structural change: prior to OBBBA, Congress had to manually legislate CTC increases each time they wanted to keep pace with inflation.
Phase-out begins at $200,000 AGI (single) and $400,000 (MFJ). For a family with two children earning $150,000, the credit reduces federal tax owed by $4,400 directly.
3. Qualified Business Income (QBI) Deduction Made Permanent
Self-employed workers, freelancers, and pass-through business owners benefit from the 20% QBI deduction being made permanent under OBBBA. This deduction was originally TCJA-era and scheduled to expire after 2025. For a sole proprietor with $80,000 in qualified business income, the 20% deduction ($16,000) reduces taxable income by that amount — saving approximately $3,520 in federal taxes at the 22% marginal rate.
Use the Paycheck Calculator to see how these deductions affect your net pay — and the Savings Calculator to model what redirecting tax savings into an investment account would compound to over 10–20 years.
How to Lower Your 2026 Federal Tax Bill
- Maximize pre-tax retirement contributions. Every dollar contributed to a traditional 401k (up to $24,500, or $32,500 / $35,750 with catch-up) reduces your AGI directly. For a worker in the 22% bracket contributing $10,000, that is $2,200 in federal tax savings.
- Contribute to an HSA if eligible. Health Savings Account contributions ($4,300 individual / $8,550 family for 2026) are fully deductible above-the-line, regardless of whether you itemize.
- Verify eligibility for the senior deduction. If you are 65+ with AGI under $75,000 (single) or $150,000 (MFJ), the $6,000 extra deduction requires no additional action beyond noting it on your return — but many taxpayers are unaware it exists.
- Self-employed? Deduct the full QBI 20%. Pass-through income from a sole proprietorship, partnership, or S-Corp qualifies. Income limits apply above $200,900 (single) — consult a CPA if you're near that threshold.
- Check if itemizing now beats the standard deduction. With the standard deduction at $16,100, only taxpayers with mortgage interest + SALT + charitable giving exceeding that amount benefit from itemizing. Run both scenarios before filing.
Track your annual financial position with the Net Worth Calculator and model how tax efficiency compounds into long-term wealth with the Budget Calculator.
Sources & Citations
Data sources: IRS — Tax Inflation Adjustments for Tax Year 2026 (including OBBBA amendments); Tax Foundation — 2026 Federal Income Tax Brackets and Rates; IRS — One Big Beautiful Bill Act: Key Provisions for Individuals. Tax calculations independently verified using the UtilsDaily Paycheck Calculator.