Filing taxes is a complicated process, but one of the factors that often comes into play is the tax bracket of the IRS, and if you have a better understanding of it, then more money can be saved. Newly Updated by the IRS, the 2026 income tax brackets have opened wide the door for married couples filing their taxes together to strategise for the next few years, which will, in turn, be reported in 2027.
Here’s a plain and straight forward explanation regarding the changes and their possible impact on your household income and taxes.
Understanding the 2026 federal tax brackets
Tax brackets are basically the income ranges that decide the percentage of tax that you are liable to pay. The IRS practices marginal tax rates, which imply that only the part of your income which is in the higher bracket is taxed at the higher rate — not the whole of your income.
The tax rates for 2026 are still the same as previously — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — but the income limits have been increased on account of inflation. This move is beneficial for the taxpayers since it rings fences them from moving to the higher tax brackets just because their income has been slightly increased due to the cost-of-living adjustments.
2026 tax brackets for married couples filing jointly
Here are the newly adjusted tax brackets for married couples filing jointly in 2026:
- 10% — on taxable income up to $24,800
- 12% — on income over $24,800 up to $100,800
- 22% — on income over $100,800 up to $211,400
- 24% — on income over $211,400 up to $403,550
- 32% — on income over $403,550 up to $512,450
- 35% — on income over $512,450 up to $768,700
- 37% — on income over $768,700
These brackets apply to your taxable income, which is your income after deductions, credits, and adjustments.
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How marginal tax rates actually work
It’s worth noting that belonging to a specific tax category does not imply that the entire income is subject to that rate. For instance, a married couple with a taxable income of $110,000 are taxed at the 22% rate, but their total payment is not 22% of the $110,000 amount.
Here’s how it works:
- The first $24,800 is taxed at 10%.
- The portion between $24,801 and $100,800 is taxed at 12%.
- The amount over $100,800 (which is $9,200 in this case) is taxed at 22%.
This system ensures that taxpayers only pay the higher rate on the income that crosses into the next bracket.
2026 vs. 2025: Inflation and bracket “creep”
The IRS alters tax brackets every year to keep them in line with inflation. The ranges for 2026 are expanded a little, which implies that more income is included in the lower tax brackets. This is one way to fight what is called “bracket creep”, which occurs when increasing salaries put individuals in the higher tax brackets although their actual purchasing power hasn’t improved much.
To put it another way, the larger 2026 brackets imply that with the same income as last year, you might end up paying less in taxes.
New 2026 standard deduction amounts
Along with the new brackets, the standard deduction has also increased for 2026:
- $16,100 for single filers and married individuals filing separately
- $32,200 for married couples filing jointly
This is a $350 increase from 2025 for singles and $700 for couples, allowing more income to be shielded from federal taxes. For many taxpayers who don’t itemise deductions, this means a slightly smaller tax bill or a bigger refund.
No “tax cliff” thanks to the 2025 legislation
In 2017, the Tax Cuts and Jobs Act (TCJA) was enacted, and a large number of its tax cuts for individuals were scheduled to end in 2025. Consequently, a “tax cliff” scenario was feared, whereby there would be a steep increase in taxes starting in 2026.
Despite that, a 2025 tax and spending bill which President Donald Trump signed on July 4, 2025, included a provision that extended the TCJA benefits. As a result, the four existing tax brackets (from 10% to 37%) will continue to exist, and there will be no abrupt increase in tax rates for the majority of Americans.
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What This Means for You
For joint filers, the new tax brackets for married couples in 2026 come with a slight relief as no rate hikes are imposed, the standard deduction is higher, and the income ranges for every bracket are increased. By making use of these changes, your total tax liability could be less, particularly if your income has not increased much over inflation.
However, the tax situation of each family is unique. The most effective way to ensure that you are maximizing these benefits is to get advice from a tax professional whom you trust, and who will assist you in already planning for 2026, such as by reducing your taxable income and keeping more of your hard-earned money.
