2026 Federal Tax Brackets and Their Impact on Your Paycheck

The One Big Beautiful Budget Act (OBBBA, P.L. 119-21), signed in July 2025, permanently extended the federal income tax rate structure that had been set by prior legislation. Prior to OBBBA, several provisions were scheduled to expire, which would have reverted tax rates to higher pre-2017 levels. OBBBA eliminated that scheduled expiration.

The result: the same seven-bracket structure that has been in place continues for 2026 and beyond, adjusted annually for inflation. Taxpayers and payroll systems do not need to prepare for a bracket change. Use "2026 rates" or "OBBBA-extended rates" when describing the current structure. The TCJA's scheduled expiration no longer applies.

The seven federal income tax rates are: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These are marginal rates — each rate applies only to income within that bracket, not to total income. The bracket thresholds are adjusted for inflation each year by the IRS. For exact 2026 thresholds, consult IRS Revenue Procedure for 2026.

Single filers with a $75,000 adjusted gross income fall primarily in the 22% bracket after the standard deduction. The marginal rate is 22%, but the effective rate — total tax divided by total income — is substantially lower because only income above each threshold is taxed at the higher rate.

The federal standard deduction for 2026 is $15,000 for single filers and $30,000 for married filing jointly. This is the amount subtracted from adjusted gross income before applying the bracket rates. Most taxpayers take the standard deduction rather than itemizing.

For paycheck withholding purposes, the standard deduction is handled differently. IRS Publication 15-T uses a withholding standard deduction (different from the Form 1040 standard deduction) when calculating how much to withhold per paycheck. The payroll standard deduction for 2026 single filers is $8,600 (per biweekly Pub 15-T tables). This is the amount removed from annualised wages before applying withholding brackets. The difference between the two figures is why your paycheck withholding is an estimate — the true reconciliation happens at filing.

Your employer's payroll system uses IRS Publication 15-T to translate annual tax brackets into per-paycheck withholding. The process for a biweekly paycheck:

1. Gross pay is taken for the period (e.g., $2,884.62 for a $75,000 salary)
2. Pre-tax deductions (401k, HSA, health insurance) are subtracted
3. The adjusted wage is multiplied by 26 (biweekly periods) to annualise it
4. The Pub 15-T withholding standard deduction is subtracted (e.g., $8,600 for single)
5. The resulting amount is matched against the Percentage Method tables to find the withholding
6. The annual withholding is divided by 26 to get the per-period amount

Because the calculation annualises each paycheck, a paycheck with a bonus or overtime will temporarily look like a higher annual income, causing more withholding on that period. This over-withholding is corrected at filing.

FICA rates are unchanged for 2026: Social Security remains 6.2% on the first $184,500 of wages, and Medicare remains 1.45% on all wages. The Additional Medicare Tax of 0.9% above $200,000 (single) also continues. The seven-bracket structure itself has not changed — only the inflation-adjusted dollar thresholds shift slightly each year. State income taxes are governed by each state independently and are not affected by federal OBBBA provisions.

For any salary at any pay frequency, the ExactTakeHome paycheck calculator applies the current 2026 IRS Pub 15-T withholding tables and all 51 state schedules to give you an accurate per-paycheck estimate — no bracket math required.

What are the 2026 federal income tax brackets?

The 2026 federal income tax brackets have seven rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These are marginal rates — each rate applies only to income within that bracket range, not to your entire income. The brackets are indexed to inflation each year. The 2026 rates were permanently extended by the One Big Beautiful Budget Act (OBBBA, P.L. 119-21). Use the paycheck calculator to see exactly how the brackets affect your specific take-home.

What is the standard deduction in 2026?

The federal standard deduction is $15,000 for single filers and $30,000 for married filing jointly in 2026. This deduction reduces your taxable income before the bracket rates are applied. For example, a single filer with $75,000 in wages has taxable income of $60,000 after the standard deduction. Most taxpayers take the standard deduction rather than itemizing.

Did the OBBBA change tax brackets?

The One Big Beautiful Budget Act (OBBBA, P.L. 119-21) did not create new tax brackets — it permanently extended the existing seven-bracket structure that was set by prior legislation. This means the scheduled expiration of lower rates was cancelled. The 2026 brackets are inflation-adjusted versions of the same rates that have been in place, now made permanent.