Tax Rates for 2026

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By: Tax Hotline
Fall 2026 (Vol. 44, No. 3)

For 2026, the seven tax rates remain 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top rate of 37% applies to taxable income above $640,600 for single filers and $768,700 for married couples filing jointly. These rates are now permanent, avoiding the jump that was previously scheduled for 2026.

The standard deduction also rises. For 2026 it is $16,100 for single filers and married filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. Taxpayers age 65 or older receive an additional amount on top of the base standard deduction: $2,050 if unmarried or filing as head of household, and $1,650 per qualifying spouse if married. That brings the total standard deduction to $18,150 for a single filer age 65 or older and $35,500 for a married couple filing jointly when both spouses are 65 or older.

Seniors can also claim a separate temporary deduction of up to $6,000 per person ($12,000 for a joint return if both spouses qualify). This is available whether you itemize or take the standard deduction and applies for tax years 2025 through 2028. It phases out once modified adjusted gross income exceeds $75,000 for single filers or $150,000 for joint filers. Combined with the higher standard deduction, a single senior could shield as much as $24,150 of income before the phase-out, while a married couple both age 65 or older could shield up to $47,500.

Other temporary benefits available through 2028 include a deduction for qualified tips (up to $25,000 in eligible occupations) and for the premium portion of overtime pay (up to $12,500, or $25,000 on a joint return). These do not eliminate Social Security and Medicare taxes, and they also phase out at higher incomes.

Taken together, the permanent lower rates, larger standard deduction, and temporary senior and worker benefits give many households a clearer and more favorable tax picture heading into the 2026 filing season.