Understanding how tax brackets work can make it easier to plan, adjust your withholding, and prepare for changes that may affect your tax bill. The 2026 tax year brings updated income thresholds and a higher standard deduction.
Even if your income stays the same, your taxes may look different next year. This guide breaks down what to expect and how to prepare.
A Quick Refresher on Tax Brackets
The United States uses a progressive tax system. This means your income is taxed in portions. Each portion falls into a bracket with its own tax rate.
Your marginal tax rate is the highest rate that applies to you, but your overall effective tax rate is based on how each portion of your income is taxed. This structure helps prevent all of your income from being taxed at one flat rate.
What Is Changing in 2026
For 2026, federal income tax brackets continue to follow the familiar seven-rate structure. These thresholds rise to reflect inflation and updates from recent legislation. The standard deduction is also increasing, which affects how much of your income is taxed.
Here are the 2026 tax brackets based on taxable income.
Single Filers
10 percent: Up to 12,400
12 percent: 12,401 to 50,400
22 percent: 50,401 to 105,700
24 percent: 105,701 to 201,775
32 percent: 201,776 to 256,225
35 percent: 256,226 to 640,600
37 percent: Over 640,600
Married Filing Jointly
10 percent: Up to 24,800
12 percent: 24,801 to 100,800
22 percent: 100,801 to 211,400
24 percent: 211,401 to 403,550
32 percent: 403,551 to 512,450
35 percent: 512,451 to 768,700
37 percent: Over 768,700
Standard Deduction Changes for 2026
The standard deduction is also increasing in 2026.
Single filers: 16,100
Married filing jointly: 32,200
A higher standard deduction reduces taxable income for many households and may influence whether itemizing is worthwhile.
Why These Changes Matter
Bracket adjustments can influence your tax liability in several ways. More of your income may fall into lower tax brackets. Your withholding may need to be updated to reflect new thresholds.
The higher standard deduction may lower taxable income for non-itemizers. These changes can also influence decisions around income timing, charitable giving, and retirement contributions.
Understanding where your income falls within the 2026 brackets can help you make informed decisions throughout the year.
How to Prepare for the 2026 Tax Year
Here are a few ways to plan ahead.
Review your withholding
As bracket thresholds change, your current withholding may no longer match what you owe. Reviewing your W4 or estimated tax payments early in the year can help prevent surprises.
Consider the timing of income or deductions
If you have flexibility, the year you receive certain income or take certain deductions can influence your overall tax picture.
Evaluate retirement contributions
Tax-advantaged accounts can reduce taxable income. The updated thresholds may influence the bracket you land in and how much you can save.
Pay attention to deductions and credits
Changes to thresholds and the standard deduction may shift whether itemizing makes sense or whether the standard deduction gives you a better outcome.
When to Seek Professional Guidance
If you expect income fluctuations, a major life change, new business income, or simply want to prepare confidently for next year, a tax professional can help you understand how the 2026 brackets affect your situation.
They can walk through scenarios, evaluate your withholding, and help you plan a strategy that fits your financial goals.
A Smart Approach to 2026 Planning
The 2026 bracket adjustments give many taxpayers a little more room before entering higher tax rates. They also highlight the value of reviewing your tax situation each year rather than assuming it stays the same.
With thoughtful planning and the right support, you can approach the new tax year with clarity and confidence.
If you ever want help understanding how these updates affect your finances or planning ahead for 2026, AMG Finance is here to guide you through the details and help you make informed decisions.
