Tax Rates

• Comparison of the 2025 and 2026 current-law brackets
• Marginal and effective rate curves from the unified tax kernel, including Social Security §86 taxability, NIIT, IRMAA, and ACA subsidy effects
• Cliff annotations on the chart for every threshold the curves cross
• All four filing statuses
• Optional resident-state tax overlay (latest published state schedule)
• Always uses the standard deduction. The unified kernel does not model itemized deductions on this page

Use this tool to estimate your 2026 federal income tax bill or compare marginal and effective rates. You can also model how a raise, bonus, or Roth conversion affects your taxes. Enter your income and filing status for a bracket-by-bracket breakdown.

1. Select your filing status: Single, Married Filing Jointly (MFJ), Married Filing Separately (MFS), or Head of Household (HoH). Optionally pick a resident state for the state-tax overlay.
2. Enter your W-2 wages and other ordinary income, such as a pension or IRA distribution. Then enter short-term and long-term capital gains.
3. In the Additional income panel, enter qualified dividends, gross Social Security, and tax-exempt interest if applicable. Each shifts the rate curves and moves the cliff annotations.
4. Open IRMAA and ACA cliffs to draw Medicare-age IRMAA tiers or model an ACA SLCSP premium.
5. Review the bracket schedule and the calculator KPIs: federal tax, effective and marginal rates, and NIIT/IRMAA/ACA when triggered. All of them come from the same kernel that draws the chart, so the cards and the curve agree at your income point.

Scenario: Married filing jointly with $180,000 gross income, standard deduction.

1. Select MFJ. Enter $180,000 income. Use standard deduction ($32,200).
2. Taxable income = $180,000 − $32,200 = $147,800.
3. The bracket breakdown shows: first $24,800 taxed at 10% ($2,480), next $76,000 taxed at 12% ($9,120), next $47,000 taxed at 22% ($10,340).
4. Total tax: approximately $21,940.
5. Marginal rate: 22% (the bracket your last dollar falls in). Effective rate: ~12.2% ($21,940 / $180,000).

The effective rate is well below the marginal rate because each bracket's rate applies only to the income inside that bracket.

The United States uses a progressive tax system that splits income into bands (brackets). Each bracket's rate applies only to the income within that bracket, not to your entire income. This means your effective tax rate is always lower than your marginal rate.

• Marginal rate: the tax rate on your last dollar of income. This is the rate that applies to additional income or deductions at the margin. See the Glossary.
• Effective rate: your total tax divided by your total income. This represents your true average tax burden.

The One Big Beautiful Bill Act (OBBBA) became law in 2025. It extended most Tax Cuts and Jobs Act (TCJA) individual rate cuts that were due to expire. Key modeled 2026 changes:

• Rate brackets preserved: the TCJA rates continue. They do not revert to the pre-TCJA schedule.
• Standard deduction: inflation-adjusted to $16,100 (single) / $32,200 (MFJ) for 2026.
• SALT cap raised: state and local tax deduction cap increased to $40,000 (MFJ) from the previous $10,000.
• AMT exemptions updated: higher exemption amounts and phase-out thresholds under the OBBBA.

This page always applies the standard deduction. The unified tax kernel that draws the chart does not model itemized deductions. An itemized toggle would have no effect on the chart or the calculator. The 2026 standard deduction is $16,100 for single, $32,200 for married filing jointly. To model itemized deductions, go to the AMT Calculator. It provides inputs for mortgage interest, charitable contributions, and SALT.

Your filing status determines your bracket thresholds and standard deduction amount. The tool supports all four federal filing statuses: single, married filing jointly, married filing separately, and head of household.