2026 Standard Deduction and Tax Rate

Very few people like surprises, at least not the kind that come from the IRS. So, as you look ahead through 2026, here are the numbers the IRS will use to decide how much money they think you’ll owe them.

Standard Deduction

The standard deduction reduces a taxpayer’s taxable income by a flat dollar amount which is determined by the government. Beginning with the Tax Cuts and Jobs Act in 2017, the standard deduction was doubled for all classes of filers as an incentive for taxpayers not to itemize deductions. Today, almost 88% of taxpayers choose the standard deduction.

For the 2026 tax year the standard deduction for taxpayers under age 65 will be:

• $30,200 for those married filing jointly or surviving spouse
• $24,150 for head of household
• $16,100 for single or married filing separately

Seniors and blind taxpayers

There is an additional deduction, above the standard deduction for individuals 65 years of age and older.

• 65 and filing jointly-$1,650 per person (total of $3,300). So, for a married couple, if both individuals are 65 or older, their standard deduction will be $33,500 ($30,200 + $1,650 + $1,650).
• 65 and filing single-$2,050
• 65 and blind-an additional deduction of $2,050. For this person the standard deduction would be $20,200 ($16,100 + $2,050 + $2,050)

This bonus can be claimed by eligible persons whether they itemize or take the standard deduction.

You can find out more about the higher standard deduction for seniors and the blind in IRS Publication 501.

https://www.irs.gov/forms-pubs/about-publication-501

Temporary senior bonus

For tax years 2025-2028 there is an additional deduction in addition to the ones mentioned above. The Tax Act of 2025 gives a $6,000 deduction to each taxpayer age 65 and up. For married couples filing jointly that means a $12,000 deduction.

This bonus can be claimed by eligible persons whether they itemize or take the standard deduction.

2026 tax brackets

Tax brackets are about taxable income—the amount after deductions and credits. Here’s what the brackets look like for 2026:

Married filing jointly and survivors

• Up to $24,800 – 10%
• $24,800-$100,800 -12%
• $100,800-$211,400 – 22%
• $211,400-$403,550 – 24%
• $403,550-$512,450 – 32%
• $512,450-$768,700 – 35%
• Above $768,700 – 37%

Head of Household

• Up to $17,700 – 10%
• $17,700-$647,450 – 12%
• $67,450-$105,700 – 22%
• $105,700-$201,750 – 24%
• $201,750-$256,200 – 32%
• $256,200-$640,600 – 35%
• $640,600 and above – 37%

Single

• Up to $12,400 – 10%
• $11,925-$48,475 – 12%
• $48,475-$103,350 – 22%
• $103,350-$197,300 – 24%
• $197,300-$250,525 – 32%
• $250,525-$626,350 – 35%
• Above $626,350 – 37%

Married filing separately

• Up to $12,400 – 10%
• $12,400-$50,400 – 12%
• $50,400-$105,750 – 22%
• $105,750-$201,775 – 24%
• $201,775-$256,225 – 32%
• $256,225-$384,350 – 35%
• Above $384,350 – 37%

Alternative Minimum Tax (AMT)

The Alternative Minimum Tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding the individual income tax. It requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer pays the higher of the two.

The AMT uses an alternative definition of taxable income called Alternative Minimum Taxable Income (AMTI). To prevent low and middle-income taxpayers from being subject to the AMT, taxpayers are allowed to exempt a significant amount of their income from AMTI. However, this exemption phases out for high-income taxpayers. The AMT is levied at two rates: 26 percent and 28 percent.

The AMT exemption amount for 2026 is $90,100 for singles and $140,200 for married couples filing jointly. The 28% AMT rate applies to excess AMTI of $244,500 for all taxpayers, $122,550 for married couple filing separate returns.

Capital Gains

Long-term capital gains rates apply to investments held more than one year and are based on income and tax filing status.

Short-term capital gains taxes occur on profits for assets sold after being held for a year or less. Short-term capital gains tax rates can range from 10% to 37%, and are based on your tax bracket.

Disclaimer

Disclaimer:

This information is presented for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy any investment products. None of the information herein constitutes an investment recommendation, investment advice or an investment outlook. The opinions and conclusions contained in this report are those of the individual expressing those opinions. This information is non-tailored, non-specific information presented without regard for individual investment preferences or risk parameters. Some investments are not suitable for all investors; all investments entail risk and there can be no assurance that any investment strategy will be successful. This information is based on sources believed to be reliable and Alhambra is not responsible for errors, inaccuracies, or omissions of information. For more information contact Alhambra Investments at 1-888-777-0970 or email us at info@alhambrapartners.com.