2026 Tax Bracket Changes Explained: What the OBBBA Means for Your Paycheck
What Changed for 2026
The 2026 tax year brings several important changes thanks to inflation adjustments and the One Big Beautiful Bill Act (OBBBA), which made the Tax Cuts and Jobs Act (TCJA) individual rates permanent.
Here are the key changes that affect your paycheck:
New Standard Deductions (2026)
| Filing Status | 2025 | 2026 | Increase |
|---|---|---|---|
| Single | $15,000 | $16,100 | +$1,100 |
| Married Filing Jointly | $30,000 | $32,200 | +$2,200 |
| Married Filing Separately | $15,000 | $16,100 | +$1,100 |
| Head of Household | $22,500 | $24,150 | +$1,650 |
The higher standard deduction means more of your income is tax-free, resulting in lower taxes for nearly everyone.
2026 Federal Tax Brackets (Single Filer)
| Rate | 2025 Bracket | 2026 Bracket |
|---|---|---|
| 10% | $0 - $11,925 | $0 - $12,400 |
| 12% | $11,925 - $48,475 | $12,400 - $50,400 |
| 22% | $48,475 - $103,350 | $50,400 - $105,700 |
| 24% | $103,350 - $197,300 | $105,700 - $201,775 |
| 32% | $197,300 - $250,525 | $201,775 - $256,225 |
| 35% | $250,525 - $626,350 | $256,225 - $640,600 |
| 37% | $626,350+ | $640,600+ |
All bracket thresholds increased by approximately 2.8% due to inflation adjustments.
The One Big Beautiful Bill Act (OBBBA)
The most significant development: the OBBBA made the TCJA's individual tax rates permanent. Without this legislation, the 2017 tax cuts would have expired after 2025, causing rates to revert to higher pre-TCJA levels.
What this means for you: the 7-bracket system with rates from 10% to 37% continues indefinitely.
Other Key 2026 Changes
- 401(k) contribution limit: Increased to $24,500 (was $23,500), catch-up limit $32,500 for age 50+
- Social Security wage cap: Increased to $184,500 (was $176,100) -- higher earners pay more in SS tax
- State tax cuts: Kentucky dropped to 3.5%, North Carolina to 3.99%, Mississippi to 4.0%
How Much More Will You Take Home?
For a $75,000 salary (single filer), the 2026 changes result in approximately $150-250 more in annual take-home pay compared to 2025 at the federal level. State-level changes may add further savings depending on where you live.
Use our salary calculator to see your exact 2026 take-home pay.
