Tax rates, deductions, credits and other provisions for your 2026 taxes are presented in the tables below. Inflation adjustments for many thresholds, deductions and credits averaged 2.5%. New charitable contribution rules and reduced alternative minimum tax (AMT) exemption phaseout thresholds will take effect in 2026; see our Key Tax Numbers for 2025 and 2026 article for details.

For a review of the 2025 tax numbers, see the 2025 Tax Rates, Deductions and Allowable Benefits article.

2026 Federal Income Tax Brackets and Rates

The seven federal income tax rates remain at 10%, 12%, 22%, 24%, 32%, 35% and 37%. For 2026, the OBBBA provided an additional inflation adjustment to the three lowest brackets, resulting in a 4.0% increase for those thresholds, compared to a 2.3% increase for the higher brackets.

2026 Tax Rates for Estates and Trusts

Estates and trusts reach the highest tax bracket (37%) at much lower income levels than individual taxpayers. For 2026, the top rate applies to taxable income above $16,000.

2026 Capital Gains and Qualified Dividends Taxes

Long-term capital gains and qualified dividends are taxed at 0%, 15% or 20%—significantly lower than ordinary income tax rates.

Holding period requirements:

• Long-term capital gains: Assets must be held more than one year
• Qualified dividends: Common stocks must be held more than 60 days during the 121-day period beginning 60 days before the ex-dividend date

The income thresholds for these preferential rates are different from ordinary income tax brackets and are adjusted annually for inflation.

2026 Allowable Tax Benefits

Filers who take the standard deduction can deduct up to $2,000 of cash charitable contributions ($1,000 for single filers). Charitable donations made by those who itemize must exceed 0.5% of adjusted gross income (AGI) to be deductible.

Catch-up contributions to 401(k), 403(b) and 457(b) plans made by those earning $150,000 or more must be made on a Roth (aftertax) basis.

The enhanced senior deduction, increased state and local tax (SALT) deduction cap and other benefits continue in 2026.

2026 Other Tax Items

Many temporary deductions introduced by the OBBBA in 2025 remain in effect for 2026, including deductions for auto loan interest (up to $10,000), qualified tips (up to $25,000) and overtime pay (up to $12,500 for single filers/$25,000 for married filing jointly). These deductions have income phaseout thresholds.

For 2026, the SALT deduction cap and its phaseout will be adjusted upward by 1% for the first time. The SALT deduction will be $40,400 in 2026 and will begin phasing out for those with modified adjusted gross income (MAGI) over $505,000.

See our What’s New for 2025–2026 Taxes article for complete details.

2026 Tax Benefit Phaseout Levels

Many tax deductions and credits are reduced or eliminated at higher income levels. The tables below show the MAGI thresholds where these benefits begin to phase out for 2026. Note: Definitions of MAGI vary across the tax code.

For 2026, the OBBBA dropped the AMT exemption phaseout thresholds to $500,000 (singles) and $1 million (married joint), exposing more high-income taxpayers to the AMT.

Download our 2026 Interactive Tax-Forecasting Worksheet.

Beyond the Guide: AAII’s Tax Seminar

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