What Single Filers Should Know About 2026 Tax Brackets

The IRS has officially announced its updated tax brackets for 2026, and the changes—while modest on the surface—could meaningfully affect how much you owe in federal income taxes. For single filers in particular, understanding these 2026 tax brackets is crucial for planning purposes. The good news: most adjustments reflect inflation-driven increases rather than rate hikes, plus some new deductions have been added to help reduce your overall tax burden.

Single Filers’ Updated Tax Brackets for 2026

The fundamental structure of the tax system remains unchanged. Your income is still taxed at progressively higher rates as your adjusted gross income (AGI) rises. However, the actual dollar amounts that trigger each tax bracket have shifted upward for 2026.

For single filers, here’s how the brackets have moved compared to 2025:

The 10% bracket now applies to income up to $12,400, up from $11,925. The 12% bracket covers income from $12,401 to $50,400 (previously $11,926 to $48,475). The 22% bracket extends from $50,401 to $105,700 (compared to $48,476 to $103,350 last year). Moving into higher income territory, the 24% bracket now spans $105,701 to $201,775. The 32% bracket covers $201,776 to $256,225. The 35% bracket applies to income from $256,226 to $640,600. Finally, the top 37% bracket kicks in on income exceeding $640,601.

These aren’t dramatic shifts, but they matter. A single filer earning $50,000 in 2026 will see slightly more of their income taxed at the lower 22% rate rather than the 12% bracket than they would have in 2025. Across the board, the brackets have inched higher to keep pace with inflation, which means you’re not being pushed into higher tax brackets simply due to wage increases that merely track inflation.

New Deductions That Benefit Single Taxpayers

Beyond the bracket adjustments, several new or expanded deductions are now available for single filers in 2026. These changes can reduce your taxable income and potentially lower what you actually owe.

The standard deduction—the amount you can automatically deduct from your income without itemizing—has increased to $16,100 for single filers in 2026, up from $15,750 in 2025. This is a straightforward benefit that most single filers will claim unless they have significant itemized deductions.

If you earn income from tips (common in restaurant and hospitality work), you now have access to a new deduction. The first $25,000 of tip income is excluded from federal income taxation, provided you file the appropriate deduction on Form 1040. Keep in mind this applies only to income tax; you’ll still owe FICA payroll taxes on tips. This benefit phases out for single filers earning $150,000 or more in adjusted gross income.

Similarly, if you work overtime hours, the first $12,500 of overtime pay (any hours beyond 40 per week) can now be deducted from your taxable income in 2026. Like the tip deduction, this is a new provision added through recent tax legislation and represents meaningful relief for workers in industries where overtime is common.

If you’re 65 or older, you’re eligible for an additional $6,000 deduction beyond your standard deduction. This extra deduction begins to phase down once your gross income reaches $75,000, so it’s most beneficial for single retirees with moderate income levels.

The SALT deduction—which allows you to deduct state and local taxes paid—has also expanded for 2026. Individual filers can now deduct up to $20,000 in state and local taxes (half of the $40,000 cap available to married filers), up from the previous $10,000 ceiling. However, this benefit begins to reduce for single filers earning more than $500,000 annually and can phase down to just $10,000.

Capital Gains and Other Tax Changes for 2026

Long-term capital gains taxation—how you’re taxed on investment profits held for more than one year—has also shifted for 2026. Single filers with taxable income below $49,450 will owe zero capital gains tax. A 15% capital gains tax rate applies to income between $49,451 and $545,500. Anything above that threshold is taxed at 20%.

Compare these to 2025’s thresholds ($48,350 and $533,400, respectively), and you’ll see these brackets have expanded slightly, again reflecting inflation adjustments. This means more of your investment income falls into the lower tax brackets before hitting the top 20% rate.

One significant change affecting some taxpayers: electric vehicle tax credits have been eliminated. Any EV purchases made after September 30, 2025, no longer qualify for federal tax credits, so this is no longer a consideration for 2026 filers.

The Alternative Minimum Tax (AMT) thresholds have also been adjusted. For 2026, the 26% AMT rate applies to individual income up to $122,500, with a 28% rate on income exceeding that amount. The AMT exemption for single filers is $90,100, up slightly from $88,100 in 2025.

Action Items for Single Filers

Now that 2026 tax brackets and deductions are official, what should you do? First, review whether you’re likely to benefit from any of the new deductions—particularly the tip income or overtime deductions if they apply to you. Second, if you typically itemize deductions, recalculate whether it’s still beneficial to do so given the higher standard deduction. Third, consider how the expanded capital gains brackets might affect your investment strategy, especially if you’re planning to harvest gains or losses this year.

The bottom line: while 2026 tax brackets for single filers represent incremental rather than revolutionary changes, the cumulative effect of higher brackets, increased deductions, and expanded capital gains thresholds means most single taxpayers will face a slightly lower overall tax burden—assuming your income grows only modestly. Understanding these changes now allows you to make informed financial decisions throughout the year.