Will Your Tax Bracket Change for the 2026 Tax Filing Year?

Taxes are an inevitable part of life, and it's the responsibility of pretty much everyone earning income in the United States to understand their IRS obligations and fulfill them. This can be complicated because the tax code is pretty complex.

One of the key things you need to know about your tax obligations is what tax brackets are and how they impact the amount you'll owe. It's also important to note that tax brackets change over time. In fact, the IRS just recently announced changes to the tax brackets for 2026, and chances are good that this change will affect you.

Here's what you need to know about what tax brackets will look like for the 2026 filing year, and how your finances will be affected.

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How are the tax brackets changing in 2026?

Tax brackets are changing for the 2026 tax filing year, as the table below shows:

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As you can see, in 2026, you will need more income to move into a higher bracket, either as a single tax filer or as a married tax filer.

For example, for income earned in 2025, you'll move into paying the 12% rate after earning over $11,925 as a single tax filer. However, in 2026, you can earn up to $12,400 without having to pay a higher tax rate on any portion of your income.

This type of change occurred across the board, even up to the highest 37% tax rate -- a rate you previously paid on income over $626,350 as a single tax filer and which you'll now pay only once your income tops $640,600 as a single tax filer.

Will your tax bracket change?

First things first. While the IRS announced these changes now, they apply for the 2026 tax filing year and not for the 2025 tax filing year.

Now, you pay taxes on income as you earn it, but you file your tax return in the year after you earn income. So, these changes are not going to impact your tax liability immediately. When you file in April of 2026, you'll pay federal income taxes on income you earned in 2025, so the 2025 brackets apply. The updated tax brackets won't start until you do your 2026 taxes, which you'll file in April of 2027.

It's also important to remember that you don't pay your highest rate on all of your income. The U.S. income tax system is progressive, and tax rates go up as your income does. Each tax bracket shows your tax rate on income earned within a specific income range. So, if you're a single tax filer with $1 million in taxable income, in the 2026 tax filing year, you'll pay:

• 10% taxes on the first $12,400 of your taxable income
• 12% on earnings between $12,400 to $50,400
• 22% on earnings between $50,400 and $105,700
• 24% on earnings between $105,700 and $201,775
• 32% on earnings between $201,775 and $256,225
• 35% on earnings between $256,225 and $640,600
• 37% on earnings above $640,600, up to the $1 million you're earning

The change in tax brackets, therefore, will affect everyone whose income is above the lowest tax rate. That's because, with these changes, more of your income will be taxed at a lower rate as it takes more money to move from one bracket to another.

The more you earn, the more you benefit from these changes too. That's because each time you move to the next tax bracket, it will take more income to do it.

For example, if you're in the 22% tax bracket in 2025, some of your income is taxed at 10%, some at 12%, and some at 22%. In 2026, you'll have an extra $475 taxed at the 10% rate since that bracket will cover income up to $12,400 in 2026 -- $475 more than the $11,925 it covered in 2025. You'd also have an extra $475 in income taxed at 12%, since it takes $475 more to move up from the 12% rate to the 22% rate.

If you're in an even higher tax bracket, this same pattern keeps repeating, with more of your income taxed at the lower rate each time you move up brackets.

This change is good news for many workers who want to keep more of their money to do things like invest in retirement plans rather than send a lot of cash to the IRS. Of course, you still have 2025 taxes to pay before the change takes effect. So don't count on a bigger tax refund this year because of the bracket changes, as they won't apply yet to help you save.

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