A shift in the United States federal tax system was originally scheduled for 2026 due to “sunset” provisions in the Tax Cuts and Jobs Act of 2017 (TCJA), but Congress changed course in July 2025 and kept the TCJA rate structure in place beyond 2025. The IRS has now published the official 2026 tax rate schedules in Revenue Procedure 2025-32. 1Internal Revenue Service. Revenue Procedure 2025-32
These changes will impact tax rates, deductions, and credits for most individual taxpayers. The law now maintains the seven TCJA rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) into 2026, with inflation-adjusted thresholds. 2Internal Revenue Service. Revenue Procedure 2025-32
The Sunset of the Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act of 2017 was an overhaul of the U.S. tax code, and many of its individual provisions were written to expire after 2025. However, in July 2025 Congress enacted legislation that made the TCJA’s individual rate structure permanent; as a result, the top rate remains 37% in 2026 rather than reverting to 39.6%. 3Internal Revenue Service. Revenue Procedure 2025-32
This change affects several components of individual income taxes. Instead of reverting to pre-TCJA brackets and rates, the 2026 system keeps the TCJA’s seven-rate structure and updates the income thresholds for inflation.
Projected 2026 Federal Income Tax Brackets
The IRS has released the official 2026 tax rate schedules. The seven rates remain 10%, 12%, 22%, 24%, 32%, 35%, and 37%; for example, the 37% bracket begins at $640,600 for single filers and $768,700 for married filing jointly in tax year 2026. 4Internal Revenue Service. Revenue Procedure 2025-32
For comparison, the 2025 tax brackets are provided first, followed by a summary of the 2026 brackets. This shows how tax liability on the same income may change with inflation adjustments rather than a reversion to pre-TCJA rates.
2025 Tax Brackets (Filed in 2026)
Single
| Tax Rate | Taxable Income |
| — | — |
| 10% | $0 to $11,925 |
| 12% | $11,925 to $48,475 |
| 22% | $48,475 to $103,350 |
| 24% | $103,350 to $197,300 |
| 32% | $197,300 to $250,525 |
| 35% | $250,525 to $626,350 |
| 37% | Over $626,350 |
Married Filing Jointly
| Tax Rate | Taxable Income |
| — | — |
| 10% | $0 to $23,850 |
| 12% | $23,850 to $96,950 |
| 22% | $96,950 to $206,700 |
| 24% | $206,700 to $394,600 |
| 32% | $394,600 to $501,050 |
| 35% | $501,050 to $751,600 |
| 37% | Over $751,600 |
Married Filing Separately
| Tax Rate | Taxable Income |
| — | — |
| 10% | $0 to $11,925 |
| 12% | $11,925 to $48,475 |
| 22% | $48,475 to $103,350 |
| 24% | $103,350 to $197,300 |
| 32% | $197,300 to $250,525 |
| 35% | $250,525 to $375,800 |
| 37% | Over $375,800 |
Head of Household
| Tax Rate | Taxable Income |
| — | — |
| 10% | $0 to $17,000 |
| 12% | $17,000 to $64,850 |
| 22% | $64,850 to $103,350 |
| 24% | $103,350 to $197,300 |
| 32% | $197,300 to $250,500 |
| 35% | $250,500 to $626,350 |
| 37% | Over $626,350 |
The 2025 rate tables above are set by IRS Revenue Procedure 2024-40, published in Internal Revenue Bulletin 2024-45. 5Internal Revenue Service. Internal Revenue Bulletin: 2024-45
2026 Tax Brackets (Filed in 2027)
For 2026, the IRS kept the same seven tax rates and adjusted the income thresholds for inflation; the top 37% bracket begins at $640,600 for single filers and $768,700 for married filing jointly. The 12% bracket begins at $12,400 for single filers and $24,800 for married filing jointly. 6Internal Revenue Service. Revenue Procedure 2025-32
The most noticeable difference from prior expectations is that rates do not revert to pre-2018 levels. Instead, 2026 continues the TCJA rate structure with higher income thresholds due to inflation indexing.
Key Changes to Deductions and Exemptions
The calculation of taxable income in 2026 reflects the continued TCJA framework rather than a reversion to pre-2018 rules.
Standard Deduction
For 2025, Congress increased the standard deduction to $15,750 for single filers, $31,500 for married couples filing jointly, and $23,625 for heads of household. 7Internal Revenue Service. Internal Revenue Bulletin: 2025-45
For 2026, the standard deduction increases to $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. 8Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
Personal Exemptions
Personal exemptions remain suspended at $0 and do not return in 2026 under current law. 9Internal Revenue Service. Revenue Procedure 2025-32
State and Local Tax (SALT) Deduction
The TCJA’s SALT deduction cap did not expire after 2025; Congress amended section 164 in 2025 to continue a cap with higher dollar limits and an income-based phaseout. For example, the cap is $40,000 for tax year 2025 and $40,400 for 2026, with phaseouts beginning around $500,000 modified AGI (indexed thereafter). 10Legal Information Institute. 26 U.S. Code § 164 – Taxes
Calculating Your Potential 2026 Tax Liability
To estimate your 2026 tax liability, determine your taxable income and apply the 2026 brackets. Because personal exemptions remain $0, many households will compute taxable income as gross income minus the standard deduction (or itemized deductions, if higher).
Consider a single filer with a gross income of $90,000 who takes the standard deduction. Their taxable income is $90,000 – $16,100 = $73,900 in 2026.
Using the 2026 single filer brackets, the tax would be 10% on the first $12,400 ($1,240), 12% on income from $12,400 to $50,400 ($4,560), and 22% on the remaining $23,500 ($5,170), for an estimated total of $10,970.
Now, consider a married couple with two children and a gross income of $175,000 who take the standard deduction. Their taxable income is $175,000 – $32,200 = $142,800 in 2026.
Applying the 2026 married filing jointly brackets, they would pay 10% on the first $24,800 ($2,480), 12% on income from $24,800 to $100,800 ($9,120), and 22% on the remaining $42,000 ($9,240), for an estimated total of $20,840.