2026 Federal Tax Brackets by Filing Status

Federal income tax brackets are published annually and differ by filing status (single, married filing jointly, married filing separately, head of household). Your marginal rate is the tax on the next dollar of ordinary income; your effective rate is total tax divided by total income. Confusing the two leads to bad planning—especially when capital gains, NIIT, and AMT stack on top.

TL;DR

Ordinary income (wages, short-term gains, non-qualified dividends) uses the regular bracket schedule.
Long-term capital gains and qualified dividends use preferential rates (0%, 15%, 20%) with their own brackets.
NIIT (Net Investment Income Tax) and AMT can add silent tax above certain income levels.
Exact dollar thresholds change with inflation; always use the IRS numbers for your tax year (Form 1040 instructions, Publication 17, or IRS Revenue Procedures).

Marginal vs. effective rate

Concept	Meaning
Marginal	Rate on the next dollar in the top bracket you touch
Effective	Total tax ÷ taxable income (or AGI, depending what you measure)

Example: A couple might be marginal 24% on part of their income but effective 17% overall because lower brackets filled first.

Ordinary income brackets (how to read them)

The IRS publishes cumulative tax tables and bracket cutoffs. Income in lower brackets is taxed at lower rates; only income above each threshold faces the higher rate on that slice.

Document proof callout: Your W-2 Box 1 feeds ordinary wage income; your 1099-B short-term gains stack on top as ordinary income unless long-term.

Long-term capital gains and qualified dividends

These generally use separate rate schedules. High earners may also owe the 20% LTCG rate on part of gains even when ordinary income is in a lower bracket—ordering rules matter (see Qualified Dividends and Capital Gain Tax Worksheet in Form 1040 instructions).

NIIT and AMT (why your “bracket” feels wrong)

NIIT adds 3.8% on investment income above MAGI thresholds (see Form 8960 instructions).
AMT runs a parallel tax calculation with fewer deductions for some taxpayers (Form 6251).

A simple “tax bracket calculator” that ignores these may understate tax for investors and high earners.

Worked example (illustrative, not tax advice)

Assume taxable ordinary income places you in the 24% marginal bracket for a slice of income. You then realize long-term gains. Your total tax may include:

Ordinary tax on wages (brackets)
LTCG tax on gains (preferential rates)
NIIT on investment income if MAGI exceeds thresholds

Use tax software or a professional for your exact facts.

FAQ

Where do I find official 2026 brackets?
The IRS releases annual inflation adjustments. Check the Form 1040 and Schedule D instructions for the year you are filing.

Does my state use federal brackets?
Most states do not copy federal brackets directly. They have their own rates and bases.

How to act on this today

Use our illustrative refund estimator for a quick sanity check, then register for BasilTax to run full federal + supported state math on your actual documents.

Educational content only—not individualized tax advice.