What Are the 2026 Tax Brackets?
The IRS set the 2026 tax brackets in Revenue Procedure 2025-32. Each rate applies only to the slice of taxable income inside its range, so moving into a higher bracket never raises the tax on income below it.
| Tax rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,750 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,751 to $256,200 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Source: IRS Revenue Procedure 2025-32[1], Section 4.01. Ranges are taxable income, after deductions.
2026 Standard Deduction for Retirees 65 and Older
Three separate deductions stack up for retirees in 2026. Together they can shelter more than $47,000 of a married couple’s income before the 10% bracket starts.
- Standard deduction: $16,100 single, $32,200 married filing jointly, $24,150 head of household.
- Additional deduction at 65: $2,050 if you are unmarried, or $1,650 for each spouse who is 65 or older.
- Senior deduction (2025 through 2028): $6,000 per person age 65 or older, or $12,000 when both spouses qualify. It shrinks once modified adjusted gross income passes $75,000 (single) or $150,000 (joint).
- Itemizers keep it: The $6,000 senior deduction applies whether you take the standard deduction or itemize. Married couples must file jointly to claim it.
A married couple, both 65 or older and under the income limit, can deduct $47,500 in 2026. That is $32,200 + $3,300 + $12,000.
How Retirement Income Counts Toward the Brackets
Not every dollar you receive in retirement is taxed the same way. Here is how the common sources land in the 2026 tax brackets.
- Pensions: Taxed as ordinary income at your bracket rate, except any part funded with after-tax money.
- Traditional IRA and 401(k) withdrawals: Fully taxed as ordinary income, including required minimum distributions.
- Roth IRA and Roth 401(k): Qualified withdrawals are tax-free and do not count toward your brackets.
- Annuities: Qualified annuities are fully taxable. Non-qualified annuities are taxed only on the gain, and withdrawals come out gain-first. See how annuity withdrawals are taxed.
- Social Security: Up to 85% of benefits can be taxable, depending on your combined income. Details are in the next section.
- Long-term capital gains and qualified dividends: These use their own rates. In 2026 the 0% rate covers taxable income up to $49,450 (single) or $98,900 (joint), and 15% applies up to $545,500 (single) or $613,700 (joint).
Example: A Retired Couple’s 2026 Federal Tax
Take a married couple, both 67, with $40,000 of Social Security and $60,000 of IRA withdrawals. Their combined income is $80,000, so $34,000 of their benefits (85%) is taxable.
| Step | Amount |
|---|---|
| IRA withdrawals | $60,000 |
| Taxable Social Security | $34,000 |
| Adjusted gross income | $94,000 |
| Deductions (standard + 65+ + senior) | −$47,500 |
| Taxable income | $46,500 |
| Tax: 10% on first $24,800 | $2,480 |
| Tax: 12% on next $21,700 | $2,604 |
| Total federal income tax | $5,084 |
That is about 5% of their $100,000 in total income, even though their top bracket is 12%. They still have $54,300 of room left in the 12% bracket.
2027 Tax Brackets (Projected)
The IRS has not released the official 2027 tax brackets yet. It usually publishes them in late October or early November, and we will replace these projections with the official figures as soon as they are out.
The projections below come from Bloomberg Tax, which assumes a 3.2% inflation adjustment from 2026.
| Tax rate | Single (projected) | Married filing jointly (projected) |
|---|---|---|
| 10% | $0 to $12,800 | $0 to $25,600 |
| 12% | $12,801 to $52,025 | $25,601 to $104,050 |
| 22% | $52,026 to $109,125 | $104,051 to $218,250 |
| 24% | $109,126 to $208,325 | $218,251 to $416,650 |
| 32% | $208,326 to $264,550 | $416,651 to $529,100 |
| 35% | $264,551 to $661,375 | $529,101 to $793,650 |
| 37% | Over $661,375 | Over $793,650 |
- Projected 2027 standard deduction: $16,600 single and $33,200 married filing jointly.
- Projected additional deduction at 65: $2,100 unmarried, or $1,700 per qualifying spouse.
- Senior deduction: The $6,000 amount is set by law, not indexed, and runs through 2028.
Projections: Accounting Today, Bloomberg projects tax rates for 2027[5] (September 2026). Official 2027 figures may differ.
How to Use the Brackets to Lower Your Taxes in Retirement
Knowing where your income sits in the brackets lets you choose when to take it. These moves are the most common.
- Fill the 12% bracket: If you have room left, a partial Roth conversion can move money out of your IRA at a low rate. Try the Roth conversion calculator.
- Plan for RMDs: Required minimum distributions can push you into a higher bracket in your 70s. Smaller withdrawals in your 60s can soften that.
- Use qualified charitable distributions: From age 70½, giving straight from your IRA to charity keeps that money out of your taxable income.
- Defer interest you don’t need yet: Interest in a multi-year guaranteed annuity (MYGA) is not taxed until you withdraw it, unlike CD interest, which is taxed every year. You choose the year it lands in your brackets.
- Watch your state, too: Federal brackets are only half the bill. See the states that don’t tax retirement income.
Lock in today's MYGA rate before it moves
Your rate is set by your application date, not the day rates change. Request a quote and we will confirm current rates for your state and premium, in writing, so you can decide before the market moves.
Your 2026 tax brackets decide how much of each retirement dollar you keep, so check them before you take a withdrawal, convert to a Roth or decide where to hold your savings.
This article is for general education and is not tax advice. Talk with a tax professional about your own situation.
Frequently Asked Questions
What are the 2026 tax brackets for seniors?
Seniors use the same 2026 tax brackets as everyone else: 10%, 12%, 22%, 24%, 32%, 35% and 37%. For a married couple filing jointly, the 10% rate covers taxable income up to $24,800 and the 12% rate runs to $100,800. Seniors get larger deductions, so more of their income is shielded before the brackets start.
How much is the standard deduction for people over 65 in 2026?
A single filer 65 or older gets the $16,100 standard deduction plus a $2,050 additional deduction. Married couples get $32,200 plus $1,650 for each spouse 65 or older. On top of that, the senior deduction adds $6,000 per person for 2025 through 2028, phasing out above $75,000 of modified adjusted gross income ($150,000 joint).
When will the IRS release the 2027 tax brackets?
The IRS usually publishes next year's brackets in late October or early November. The 2026 figures came out on October 9, 2025. Until the official 2027 numbers are released, Bloomberg Tax projects a 3.2% increase, with a $33,200 standard deduction for married couples filing jointly.
Is Social Security taxed in 2026?
Up to 85% of Social Security benefits can be taxed federally, depending on combined income. Benefits are not taxable if combined income is below $25,000 (single) or $32,000 (joint). Most states do not tax Social Security at all.
Are annuity payments taxed as ordinary income?
Yes, the taxable part of an annuity payment is ordinary income at your bracket rate. A qualified annuity bought with IRA or 401(k) money is fully taxable. With a non-qualified annuity, only the gain is taxable, and withdrawals come out gain-first.
How Much of Your Social Security Is Taxable?
The taxable share of your Social Security depends on combined income. Combined income is your adjusted gross income, plus nontaxable interest, plus half of your benefits.
These thresholds are set by law and are not adjusted for inflation, so more retirees cross them every year. Run your own numbers in our Social Security taxable benefits calculator.