2026 Federal Tax Brackets
Head of Household Filing Status
TCJA rates made permanent (OBBBA 2025). The 10%–37% rate structure continues in 2026 under One Big Beautiful Budget Act, enacted 2025. Brackets adjust annually for inflation per Rev. Proc. 2025-32.
| Tax Rate | Minimum Income | Maximum Income |
|---|---|---|
| 10% | $0 | $17,700 |
| 12% | $17,701 | $67,450 |
| 22% | $67,451 | $105,700 |
| 24% | $105,701 | $201,750 |
| 32% | $201,751 | $256,200 |
| 35% | $256,201 | $640,600 |
| 37% | $640,601 | and above |
Standard Deduction (2026):
$24,150
Reduce your taxable income by this amount before applying tax brackets. Most taxpayers claim the standard deduction rather than itemizing.
What Changed From 2025?
The One Big Beautiful Budget Act (OBBBA), enacted in 2025, made TCJA individual income tax rates permanent. For 2026, the IRS applied the standard annual inflation adjustment:
- Rates unchanged: The 10%–37% rate structure continues as under TCJA
- Brackets shifted upward: Income thresholds increased with inflation per Rev. Proc. 2025-32
- Standard deduction: Increased by $525 (2%) from $23,625 to $24,150
The result: taxpayers can earn slightly more income before crossing into higher brackets compared to 2025.
Understanding the 2026 Tax Environment
The One Big Beautiful Budget Act (OBBBA), enacted in 2025, permanently extended the TCJA individual income tax rates. The 2026 tax year operates under the same 10%–37% rate structure as 2024–2025, with inflation-adjusted bracket thresholds.
Planning With Stable Rates
- Roth conversions: With rates now permanent, evaluate whether your current vs. expected retirement bracket favors Traditional or Roth contributions
- Capital gains harvesting: Long-term capital gains rates (0%/15%/20%) remain preferential relative to ordinary income rates
- Business structure review: S-Corp, LLC, and sole-proprietor tax treatment should be revisited annually as bracket thresholds shift with inflation
- Charitable giving: Bunching donations to exceed the standard deduction threshold remains valuable for itemizers
Impact on Your Financial Plan
Rate stability enables longer-horizon tax planning. Update your retirement projections with 2026 bracket thresholds to optimize contribution strategies, withdrawal sequencing, and income timing across tax years.