Federal Income Tax — 2026
Federal income tax is the larger half of most Americans' income tax bill, and it works the same way in all 50 states. This page explains the mechanism and shows what it costs. For the bracket tables themselves, go straight to the 2026 federal brackets.
The four steps
- 1. Start with gross income
Wages, self-employment income, interest, dividends, capital gains, retirement distributions and most other income. A few things — municipal bond interest, most gifts, qualified Roth withdrawals — never enter.
- 2. Subtract adjustments to reach AGI
Deductible retirement contributions, health savings account contributions, student loan interest and a handful of others come off before AGI. These are available whether or not you itemise.
- 3. Subtract the standard or itemised deduction
For 2026 the standard deduction is $16,100 for a single filer and $32,200 for a married couple filing jointly. You take whichever is larger — the standard amount or your itemised total. What remains is taxable income.
- 4. Apply the brackets, then credits
Each rate applies only to the slice of taxable income inside its own bracket. Credits — child tax credit, education credits, the earned income credit — come off the calculated tax afterwards, dollar for dollar.
Your effective rate is always below your bracket
Because the lower brackets and the standard deduction apply to everyone, the share of income actually paid rises far more gently than the marginal rate.
Federal plus state: the combined bill
A single filer on $100,000 in 2026, taking the standard deduction in both systems.
| State | Federal | State | Combined income tax | Effective rate |
|---|---|---|---|---|
| Texas | $13,170 | $0 | $13,170 | 13.17% |
| Florida | $13,170 | $0 | $13,170 | 13.17% |
| Pennsylvania | $13,170 | $3,070 | $16,240 | 16.24% |
| Illinois | $13,170 | $4,805 | $17,975 | 17.98% |
| New York | $13,170 | $4,860 | $18,030 | 18.03% |
FICA is listed for context and is not part of the combined income tax figure. See all 51 jurisdictions at $100,000.
What is not federal income tax
Sources
- 1.Internal Revenue ServiceIRSRev. Proc. 2025-32 (2026 inflation-adjusted items; OBBBA amendments)Retrieved
- 2.Internal Revenue ServiceIRSIRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill (IR-2025-103)Retrieved
- 3.Internal Revenue ServiceIRSTopic no. 751, Social Security and Medicare withholding ratesRetrieved
- 4.Internal Revenue ServiceIRSQuestions and Answers on the Net Investment Income TaxRetrieved
- 5.Internal Revenue ServiceIRSQuestions and answers for the Additional Medicare TaxRetrieved
- 6.Social Security Administration (Federal Register)GovernmentCost-of-Living Increase and Other Determinations for 2026, 90 FR (Doc. 2025-19763)Retrieved
- 7.Internal Revenue ServiceIRSUnderstanding the Working Families Tax Cuts: Individual Tax Provisions - video text scriptRetrieved
- 8.Internal Revenue ServiceIRSRev. Proc. 2024-40 (2025 inflation-adjusted items)Retrieved
Figures on this page were last checked against these sources on . Found something wrong? Report it.