The IRS released the inflation-adjusted tax brackets for the 2026 tax year, which will be applied to tax returns filed in early 2027. While the marginal tax rates remain the same as in previous years—ranging from 10% to 37%—each bracket’s range of income has been widened to reflect inflation. This accommodation prevents taxpayers from being “pushed into” higher tax brackets due to inflation alone. What follows is a description of how these brackets affect single filers based on their taxable income.
How marginal tax rates work
The United States federal income tax employs marginal tax rates, so different levels of your taxable income are taxed at different rates. Your income to a certain extent is taxed at the lowest rate (10%), and then income above that extent is taxed at higher and higher rates as it moves into higher brackets. For example, if your top marginal tax rate is 24%, only the portion of your income in that bracket is taxed at that rate, not your entire income. This progressive framework results in taxpayers paying higher and higher rates on incremental portions of their income.
2026 Single-filer tax bracket breakdown
For single filers in 2026, the IRS defines the following tax brackets: The 10% rate applies to taxable income up to $12,400 as stated here, Good news for American seniors – New IRS deduction of $6,000 ($12,000 couples) lowers 2026 taxable income. Taxable income above $12,400 but not exceeding $50,400 falls in the 12% bracket. The 22% rate is applied to taxable income between $50,401 and $105,700. Taxable income between $105,701 and $201,775 is taxed at 24%. Taxable income between $201,776 and $256,225 is taxed at 32%, and taxable income between $256,226 and $640,600 is taxed at 35%. Taxable income over $640,600 is taxed at the top rate of 37%.
Illustrative example
By way of example of how these brackets work, consider a single filer with taxable income of $90,000. The first $12,400 will be taxed at 10%. The amount from $12,401 to $50,400 will be taxed at 12%. The remaining amount from $50,401 to $90,000 falls in the 22% bracket. Although the highest bracket their income enters is 22%, the effective tax rate—their average rate on their entire taxable income—will be below 22% because the smaller portions of income are taxed at the lower rates of the earlier brackets.
Avoiding bracket creep
Inflation may result in wage increases that push taxpayers into higher tax brackets despite the fact that their real income—their purchasing power—has not risen. To offset this, the IRS indexes the bracket cutoffs for inflation every year. In 2026, the adjustments for inflation created space at the top of each bracket to ensure the real value of taxpayers’ income and prevent unintentional tax increases due solely to inflation, rather than a rise in real income.
Standard deduction increase
On top of increasing the tax brackets, the IRS has also increased the standard deduction for single filers to $16,100 in 2026, up by $350 from 2025. This enables taxpayers who don’t itemize to deduct more from their taxable income, which has the effect of reducing their tax bill or increasing their refund. The combined effect of the higher standard deduction and wider tax brackets is to provide a cushion to protect taxpayers from the inflationary impact on their taxes.
Tax planning strategies
In tax planning, it is beneficial to put as much as one can into tax-deferred instruments like traditional IRAs or employer-sponsored retirement plans, which can reduce taxable income and keep the earnings in lower tax brackets. Additionally, investors can seek to realize capital losses to offset capital gains, which can also minimize taxable income and prevent income from being pushed into higher brackets. Taxpayers who itemize deductions regularly can utilize a technique called “bunching,” in which deductible expenses like medical expenses or charitable donations are grouped to exceed the standard deduction in a given year, thereby maximizing deductions. Finally, tax credits provide a direct decrease in your tax liability and can be particularly worthwhile. Credits for education, energy efficiency, or savings can occasionally result in a refund and substantially lower the total amount of tax payable.
Looking ahead
Presently, the seven federal income tax brackets are scheduled to stay the same until the 2026 tax year, keeping the structure implemented by the Tax Cuts and Jobs Act. There had been concern about a “tax cliff” that would have increased rates dramatically after 2025, but the extension of these brackets has eliminated that risk. Taxpayers should remain aware that legislative action in the years to come might still alter tax rates or bracket thresholds after 2026, so it is always best to consult with a tax professional to understand how these brackets will function with your personal circumstances, state and local taxes included.
For single filers in 2026, knowing the broader income brackets and increased standard deduction is vital for effective tax planning. It allows the taxpayer to make informed financial decisions—such as retirement account contributions or planning deductions—to reduce taxable income and lower overall tax payments. Since the IRS adjusts these brackets annually for inflation, staying informed and taking action will retain purchasing power and translate into more favorable tax outcomes.
