The One Big Beautiful Act made the Tax Cuts and Jobs Act rates permanent. These brackets apply to your 2026 income (filed in early 2027) and beyond — no more uncertainty about whether rates would revert.
Source: Romeo Razi, CPA on LinkedIn — posted after TCJA permanence confirmed
| Rate | Taxable Income (Single) | Tax on Bracket |
|---|---|---|
| 10% | $0 – $12,400 | 10% of income |
| 12% | $12,400 – $50,400 | $1,240 + 12% over $12,400 |
| 22% | $50,400 – $105,700 | $5,800 + 22% over $50,400 |
| 24% | $105,700 – $201,775 | $18,966 + 24% over $105,700 |
| 32% | $201,775 – $256,225 | $42,034 + 32% over $201,775 |
| 35% | $256,225 – $640,600 | $59,472 + 35% over $256,225 |
| 37% | Over $640,600 | $193,982 + 37% over $640,600 |
| Rate | Taxable Income (MFJ) | Tax on Bracket |
|---|---|---|
| 10% | $0 – $24,800 | 10% of income |
| 12% | $24,800 – $100,800 | $2,480 + 12% over $24,800 |
| 22% | $100,800 – $211,400 | $10,600 + 22% over $100,800 |
| 24% | $211,400 – $403,550 | $34,932 + 24% over $211,400 |
| 32% | $403,550 – $512,450 | $81,044 + 32% over $403,550 |
| 35% | $512,450 – $768,700 | $115,928 + 35% over $512,450 |
| 37% | Over $768,700 | $205,735 + 37% over $768,700 |
The most common misunderstanding about tax brackets: being in the 24% bracket doesn't mean you pay 24% on all your income. You pay each rate only on income that falls within that bracket. The rate that applies to your last dollar of income is called your marginal rate. The percentage of your total income that you actually pay is your effective rate — which is always lower.
"New 2026 tax brackets. These are the permanent rates now that TCJA is locked in — not going back to the 2017 rates. Your effective rate is what matters for planning, not just your bracket. Most people dramatically overestimate how much they owe because they confuse marginal and effective rates."
Example: single filer, $80,000 in taxable income (after all deductions):
Total tax: $1,240 + $4,560 + $6,512 = $12,312
Effective rate: $12,312 ÷ $80,000 = 15.4% — not 22%.
This distinction matters enormously for financial planning, retirement contribution decisions, Roth conversions, and understanding whether a raise or bonus will really cost you as much as you fear.
Before the One Big Beautiful Act, these lower rates were scheduled to expire after 2025 and revert to the pre-2017 rates (which were higher). Planners had to work around uncertainty about whether the 22%/24% brackets would jump back to 25%/28%.
Now that the rates are permanent, you can plan with confidence:
For more on what else changed with TCJA permanence, see our full breakdown of the One Big Beautiful Act's 9 changes.
Romeo helps business owners and individuals structure income, timing, and deductions around the actual bracket math — not just what's on a chart.
Get a Free Tax Review →