---
title: "2026 Federal Tax Brackets and Tax Rate Schedules (IRS Official)"
slug: 2026-federal-tax-brackets
publishedAt: 2026-03-11T16:05:07.590Z
updatedAt: 2026-06-26T15:54:53.863Z
author: "Mike Navarro"
authorSlug: mike-navarro
category: "Tax Planning"
tags: ["Tax Brackets", "Federal Tax", "IRS", "Tax Planning", "2026 Tax Year"]
excerpt: "Complete 2026 federal income tax brackets for all filing statuses with IRS-sourced tax rate schedules, standard deductions, AMT exemptions, FICA thresholds, and capital gains rates."
canonical: https://myequitytax.com/blog/2026-federal-tax-brackets
---
The 2026 tax brackets keep seven federal rates — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — with thresholds adjusted for inflation. They apply to taxable income after your standard deduction, and they drive what you owe on salary, RSU vesting, and ISO exercise gains.
**Tax year 2026.** These are the **2026 tax-year** figures (for the return you'll file in early 2027), from IRS **Revenue Procedure 2025-32** and the **One Big Beautiful Bill Act (OBBBA)**. The headline change from 2025 is AMT (see below): OBBBA lowered the exemption phase-out start to $500,000 (single) / $1,000,000 (MFJ) and doubled the phase-out rate to 50%. Note: our calculators are currently set to the **2025** tax year (the return you file in 2026), so their results will differ from the 2026 amounts shown here.
Every fall, the IRS releases inflation-adjusted tax brackets and deduction amounts for the following tax year. Whether you're planning a large stock option exercise or estimating your RSU withholding shortfall, having the correct brackets is the starting point for every calculation.
Below you'll find the complete 2026 federal income tax rate schedules for all four filing statuses, plus standard deductions, AMT exemptions, FICA thresholds, and capital gains rates, all sourced from IRS Revenue Procedure 2025-32 and the OBBBA.
## 2026 Tax Brackets: Federal Income Tax Rate Schedules
These 2026 tax-year brackets are set by IRS Revenue Procedure 2025-32. The seven marginal rates stay the same from year to year -- 10%, 12%, 22%, 24%, 32%, 35%, and 37% -- and only the income thresholds move, adjusted upward for inflation (about 2.7% for 2026).
### Single Filers
| Tax Rate | Taxable Income Range |
|----------|---------------------|
| 10% | $0 – $12,400 |
| 12% | $12,400 – $50,400 |
| 22% | $50,400 – $105,700 |
| 24% | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 |
| 35% | $256,225 – $640,600 |
| 37% | Over $640,600 |
### Married Filing Jointly
| Tax Rate | Taxable Income Range |
|----------|---------------------|
| 10% | $0 – $24,800 |
| 12% | $24,800 – $100,800 |
| 22% | $100,800 – $211,400 |
| 24% | $211,400 – $403,550 |
| 32% | $403,550 – $512,450 |
| 35% | $512,450 – $768,700 |
| 37% | Over $768,700 |
### Married Filing Separately
| Tax Rate | Taxable Income Range |
|----------|---------------------|
| 10% | $0 – $12,400 |
| 12% | $12,400 – $50,400 |
| 22% | $50,400 – $105,700 |
| 24% | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 |
| 35% | $256,225 – $384,350 |
| 37% | Over $384,350 |
### Head of Household
| Tax Rate | Taxable Income Range |
|----------|---------------------|
| 10% | $0 – $17,700 |
| 12% | $17,700 – $67,450 |
| 22% | $67,450 – $105,700 |
| 24% | $105,700 – $201,750 |
| 32% | $201,750 – $256,200 |
| 35% | $256,200 – $640,600 |
| 37% | Over $640,600 |
## 2026 Standard Deductions
The standard deduction reduces your gross income before tax brackets apply. Most taxpayers claim the standard deduction rather than itemizing.
| Filing Status | Standard Deduction |
|--------------|-------------------|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Married Filing Separately | $16,100 |
| Head of Household | $24,150 |
These deductions reduce your taxable income before brackets apply. For example, a single filer earning $120,000 has taxable income of $103,900 after the standard deduction — keeping them in the 22% marginal bracket, not the 24% bracket their gross income might suggest.
## Alternative Minimum Tax (AMT) Exemptions
The Alternative Minimum Tax is a parallel tax system designed to ensure high-income taxpayers pay a minimum effective rate. For employees with equity compensation, AMT is especially relevant because exercising Incentive Stock Options (ISOs) creates a "bargain element" that counts as income under AMT but not regular tax.
| Filing Status | AMT Exemption | Phase-Out Threshold |
|--------------|--------------|-------------------|
| Single | $90,100 | $500,000 |
| Married Filing Jointly | $140,200 | $1,000,000 |
| Married Filing Separately | $70,100 | $500,000 |
| Head of Household | $90,100 | $500,000 |
**AMT Tax Rates:**
- 26% on the first $244,500 of alternative minimum taxable income (AMTI) above the exemption ($122,250 for married filing separately)
- 28% on AMTI amounts above that $244,500 threshold
For 2026, the **One Big Beautiful Bill Act (OBBBA)** reshaped the exemption phase-out: it lowered the starting thresholds (to $500,000 single / $1,000,000 MFJ) and **doubled the phase-out rate from 25% to 50%**. The exemption is now reduced by $0.50 for every $1 of AMTI above the threshold, so for a single filer it is fully eliminated at $680,200 of AMTI. This expands AMT exposure for higher earners and anyone exercising ISOs.
If you hold ISOs and plan to exercise, AMT can create a significant additional tax liability. The spread between your exercise price and fair market value is added to AMTI in the year you exercise. Use our [ISO AMT Calculator](/calculator/iso) to find your AMT-free exercise limit before you trigger a surprise tax bill.
## FICA and Payroll Tax Thresholds
These payroll taxes apply to wages, including RSU vesting income and ISO disqualifying dispositions.
| Tax | Rate | Wage Base / Threshold |
|-----|------|----------------------|
| Social Security (OASDI) | 6.2% | $184,500 |
| Medicare | 1.45% | No limit |
| Additional Medicare | 0.9% | $200,000 (Single) / $250,000 (MFJ) |
| Federal Supplemental Withholding | 22% | Up to $1,000,000 |
| Federal Supplemental (over $1M) | 37% | Above $1,000,000 |
**Why supplemental rates matter for equity compensation:** RSU vesting income is classified as "supplemental wages" and withheld at a flat 22% — regardless of your actual marginal tax rate, per [IRS Publication 15](https://www.irs.gov/publications/p15). For most tech employees earning above $105,700 (the start of the 24% bracket), this creates a withholding shortfall. Employees in the 32% or 35% bracket could be under-withheld by 10-13 percentage points on every RSU vest. See our [RSU tax withholding guide](/blog/rsu-tax-withholding) for a detailed breakdown.
## How the 2026 Tax Brackets Apply to RSU Income
RSU income is added on top of your regular salary as ordinary income, as described in [IRS Publication 525](https://www.irs.gov/publications/p525). This "stacking" effect pushes your total compensation into higher marginal brackets — but your employer withholds at the flat 22% supplemental rate instead of your actual marginal rate.
**Example: Single filer with RSU vesting**
- Base salary: $200,000
- RSU vesting: $100,000
- Total W-2 income: $300,000
- Taxable income (after $16,100 standard deduction): $283,900
At $283,900, the marginal rate is **35%** (the 35% bracket starts at $256,225 for single filers). But the employer only withheld 22% on the $100,000 RSU portion — that's $22,000 in withholding vs. roughly $31,000 in actual tax on those RSU dollars. The result is a **$9,000+ withholding shortfall** due at tax time.
This is the single most common reason tech employees receive surprise tax bills in April. For a complete breakdown, see our [RSU tax rate guide](/blog/rsu-tax-rate) and [RSU tax withholding guide](/blog/rsu-tax-withholding). You can also calculate your exact shortfall with our [RSU Calculator](/calculator/rsu).
The chart below shows how the flat withholding rate compares to the marginal rate at different income levels.
## AMT Brackets vs. Regular Tax Brackets
The federal tax system effectively runs two parallel calculations on your income:
1. **Regular tax** — Uses the seven brackets above (10% through 37%) with standard deductions, personal exemptions, and itemized deductions.
2. **Alternative Minimum Tax (AMT)** — Uses a flatter two-rate structure (26% and 28%) with fewer allowed deductions and a larger exemption, calculated on [IRS Form 6251](https://www.irs.gov/forms-pubs/about-form-6251).
You pay whichever amount is higher. For most W-2 employees, regular tax is higher. But ISO exercises change this calculus because the bargain element (the spread between exercise price and fair market value) is added to AMT income but not regular income.
**How AMT triggers work with ISOs:**
- You exercise 10,000 ISOs with a $5 exercise price when FMV is $25
- The $200,000 spread ($20 x 10,000) is added to your AMT income
- Your AMT liability may now exceed your regular tax
- The difference is your "AMT bill" — an additional tax on top of your regular income tax
The good news: AMT paid on ISO exercises generates an AMT credit that you can recover in future years when you sell the shares or when your regular tax exceeds AMT. Learn more in our [AMT calculator guide](/blog/amt-calculator-stock-options) and use the [ISO AMT Calculator](/calculator/iso) to model different exercise quantities.
## State Income Tax Comparison
State taxes add a significant layer on top of federal tax for equity compensation. Here are the key rates for the four most common states among tech employees:
| State | Top Rate | Supplemental Rate | Notes |
|-------|---------|-------------------|-------|
| California | 13.3% | 10.23% | Includes 1% Mental Health Services Tax on income over $1M |
| New York | 10.9% | 11.70% | Plus NYC tax up to 3.876% for city residents |
| Texas | 0% | N/A | No state income tax |
| Washington | 0% | N/A | No state income tax |
For California and New York residents, the combined federal + state marginal rate on RSU income can exceed 50%. See our detailed guides: [California Income Tax](/blog/california-income-tax) and [New York Income Tax](/blog/new-york-income-tax).
The comparison below visualizes how the same equity income is taxed across high-tax and no-tax states.
## Capital Gains Tax Rates (2026)
Long-term capital gains (assets held over one year) are taxed at preferential rates:
| Filing Status | 0% Rate | 15% Rate | 20% Rate |
|--------------|---------|----------|----------|
| Single | Up to $49,450 | $49,450 – $545,500 | Over $545,500 |
| Married Filing Jointly | Up to $98,900 | $98,900 – $613,700 | Over $613,700 |
| Married Filing Separately | Up to $49,450 | $49,450 – $306,850 | Over $306,850 |
| Head of Household | Up to $66,200 | $66,200 – $579,600 | Over $579,600 |
**Why this matters for equity compensation:**
- **RSUs** are taxed as ordinary income at vesting. But if you hold shares after vesting for more than one year, any post-vesting appreciation qualifies for long-term capital gains rates when you sell.
- **ISOs** can qualify for long-term capital gains on the entire spread if you meet both holding period requirements: hold shares at least 2 years from grant and 1 year from exercise.
- **83(b) elections** convert future appreciation from ordinary income to long-term capital gains, potentially saving 17+ percentage points on every dollar of growth.
For more on how each equity type is taxed, see [How RSUs Are Taxed](/blog/how-are-rsus-taxed) and [83(b) Elections Explained](/blog/83b-election-explained).
## Key Changes from 2025 to 2026
Compared with the 2025 tax year, the 2026 figures changed as follows:
- **Standard deduction** increased from $15,750 to $16,100 (single), from $31,500 to $32,200 (MFJ)
- **AMT exemption** increased from $88,100 to $90,100 (single), from $137,000 to $140,200 (MFJ)
- **AMT phase-out (OBBBA)** — the biggest change: the phase-out start dropped sharply to $500,000 (single) / $1,000,000 (MFJ), and the phase-out rate doubled from 25% to 50%, effective for tax year 2026
- **Tax bracket thresholds** shifted up about 2.7% for inflation (e.g., the 37% bracket for single filers now starts at $640,600, up from $626,350)
- **Social Security wage base** increased from $176,100 to $184,500
For most filers the inflation adjustments mean modestly less tax than 2025, but the OBBBA AMT changes can meaningfully raise liability for high earners and anyone exercising ISOs — model your AMT before you exercise.
## Frequently Asked Questions
**What are the 2026 federal tax brackets?**
The 2026 tax year has seven marginal rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 37% rate applies to taxable income over $640,600. For married filing jointly, the 37% rate kicks in at $768,700. These brackets apply to taxable income (after the standard deduction), not gross income.
**Did tax brackets change for 2026?**
The seven rates (10% through 37%) remain unchanged. However, the income thresholds shifted up about 2.7% for inflation. For example, the 24% bracket for single filers now starts at $105,700 (up from $103,350 in 2025), and the standard deduction increased to $16,100 (up from $15,750). The bigger 2026 change is to the AMT: under the OBBBA, the exemption phase-out starts lower ($500,000 single / $1,000,000 MFJ) and phases out twice as fast (50%).
**How do tax brackets affect RSU income?**
RSU income is added on top of your salary as ordinary income, pushing your total W-2 into higher marginal brackets. However, your employer withholds only 22% on RSU income (the federal supplemental rate) regardless of your actual bracket. If your total income puts you in the 32% or 35% bracket, you face a 10-13 percentage point withholding shortfall — typically $5,000-$15,000 owed at tax time. Use our [RSU Calculator](/calculator/rsu) to find your exact gap.
**What is the AMT exemption for 2026?**
The 2026 AMT exemption is $90,100 for single filers and $140,200 for married filing jointly. Under the OBBBA, the exemption phases out starting at $500,000 (single) and $1,000,000 (MFJ), reduced by $0.50 for every $1 of alternative minimum taxable income above the threshold (up from $0.25). For single filers, the exemption is fully eliminated at $680,200 of AMTI. AMT is especially relevant for ISO holders — use our [ISO AMT Calculator](/calculator/iso) to model the impact.
**Are capital gains brackets different from income tax brackets?**
Yes. Long-term capital gains (assets held over one year) use three rates: 0%, 15%, and 20%. For single filers in 2026, the 0% rate applies to taxable income up to $49,450, the 15% rate covers $49,450-$545,500, and the 20% rate applies above $545,500. (High earners may also owe the 3.8% Net Investment Income Tax above $200,000 MAGI single / $250,000 MFJ.) This matters for equity compensation: RSUs are taxed as ordinary income at vesting (up to 37%), but any post-vesting appreciation held over a year qualifies for the lower capital gains rates when sold.
**How do I calculate my effective tax rate for 2026?**
Divide your total federal tax by your total taxable income. Because brackets are marginal (each rate applies only to income within that range), your effective rate is always lower than your top marginal rate. For example, a single filer with $200,000 in taxable income pays: 10% on the first $12,400 + 12% on $12,400-$50,400 + 22% on $50,400-$105,700 + 24% on $105,700-$200,000 = approximately $40,600, for an effective rate of about 20.3%.