US Tax Brackets Explained 2026: Federal Income Tax & Payroll Tax Guide

The US tax system includes federal income tax, Social Security, Medicare, and often state taxes. This comprehensive guide explains the 2026 tax year rates and how they affect your take-home pay.

Quick Summary (TL;DR)

Key Points for 2026:

• Standard deduction: $14,600 (single), $29,200 (married filing jointly)
• Federal rates: 10%-37% progressive brackets
• Social Security: 6.2% on income up to $168,600
• Medicare: 1.45% on all income, plus 0.9% on high earners
• State taxes vary by location (0%-13.3%)

Federal Income Tax Brackets 2026

Single Filers

Tax Rate	Taxable Income Range
10%	$0 - $11,000
12%	$11,001 - $44,725
22%	$44,726 - $95,375
24%	$95,376 - $182,050
32%	$182,051 - $231,250
35%	$231,251 - $578,125
37%	$578,126+

Married Filing Jointly

Tax Rate	Taxable Income Range
10%	$0 - $22,000
12%	$22,001 - $89,450
22%	$89,451 - $190,750
24%	$190,751 - $364,200
32%	$364,201 - $462,500
35%	$462,501 - $693,750
37%	$693,751+

Payroll Taxes 2026

Social Security Tax

• Rate: 6.2% (employee) + 6.2% (employer) = 12.4% total
• Wage Base: $168,600 (maximum taxable earnings)
• Maximum Annual Tax: $10,453.20 per person

Medicare Tax

• Rate: 1.45% (employee) + 1.45% (employer) = 2.9% total
• No wage limit — applies to all earned income
• Additional Medicare Tax: 0.9% on income over $200,000 (single) / $250,000 (married filing jointly)

Standard Deductions 2026

Filing Status	Standard Deduction
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$14,600
Head of Household	$21,900

Tax Calculation Examples

Example 1: Single Filer — $60,000 Salary

Federal Income Tax:

• Standard Deduction: $14,600
• Taxable Income: $45,400
• Tax Calculation:
  • 10% on first $11,000 = $1,100
  • 12% on $33,725 = $4,047
  • 22% on $675 = $148.50
• Total Federal Tax: $5,295.50

Payroll Taxes:

• Social Security: $60,000 × 6.2% = $3,720
• Medicare: $60,000 × 1.45% = $870
• Total Payroll Taxes: $4,590

Total Federal Taxes: $9,885.50 Take-home (before state tax): $50,114.50

Example 2: Married Filing Jointly — $120,000 Combined

Federal Income Tax:

• Standard Deduction: $29,200
• Taxable Income: $90,800
• Total Federal Tax: $10,591

Payroll Taxes (combined):

• Social Security: $7,440
• Medicare: $1,740

Total Federal Taxes: $19,771 Take-home (before state tax): $100,229

State Income Tax Considerations

No State Income Tax (9 States)

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming

High Tax States (8%+)

State	Top Rate
California	13.3%
New York	10.9%
New Jersey	10.75%
Hawaii	11%
Oregon	9.9%

Important Dates for 2026

• Tax Year: January 1 - December 31, 2026
• Filing Deadline: April 15, 2027
• Extension Deadline: October 15, 2027

Tax Planning Strategies

1. Maximize 401(k) contributions — reduces current taxable income
2. Use HSA — triple tax-advantaged savings
3. Claim all eligible credits — Child Tax Credit, EITC, education credits
4. Time income and deductions — defer income, accelerate deductions

Frequently Asked Questions

What is the standard deduction for 2026?

For 2026, the standard deduction is $14,600 for single filers, $21,900 for head of household, and $29,200 for married filing jointly.

How much Social Security tax do I pay?

You pay 6.2% Social Security tax on income up to $168,600 in 2026. Your employer matches this contribution.

When do I pay the additional Medicare tax?

The additional 0.9% Medicare tax applies to income over $200,000 for single filers or $250,000 for married filing jointly.

Which states have no income tax?

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

What is the difference between marginal and effective tax rates?

Your marginal rate is the tax on your last dollar earned. Your effective rate is your total tax divided by total income.

Step-by-Step: How to Calculate Your US Tax

Step 1: Calculate Gross Income

Add up all sources of income: salary, bonuses, interest, dividends, etc.

Step 2: Apply Standard or Itemized Deductions

Subtract either the standard deduction or itemized deductions (whichever is higher).

Step 3: Calculate Federal Income Tax

Apply progressive tax rates to your taxable income using the brackets above.

Step 4: Calculate Payroll Taxes

Add Social Security (6.2%) and Medicare (1.45%) taxes on applicable income.

Step 5: Add State and Local Taxes

Calculate state income tax based on your location.

Step 6: Determine Take-Home Pay

Subtract all taxes from gross income to find your net take-home pay.

Conclusion

The US tax system is complex, with federal, state, and local considerations. Use our US Tax Calculator to model different scenarios and optimize your tax strategy.

Disclaimer: Tax laws are complex and change frequently. This guide covers general rules for 2026. Consult a tax professional for advice specific to your situation.