Current Tax Rates

The 2026 income ceiling for all listed tax brackets and for all filers, adjusted for inflation are listed below. The Seven federal income tax rates for 2026 are... 10% - 12% - 22% - 24% - 32% - 35% - 37% (no changes from 2025). The marginal income tax rate of 37% will apply to taxpayers with taxable income above $640,600 (single filers), and $768,700 is the target for married couples filing jointly...(SEE Table 1)

Rate	Single Individuals - Taxable Income Over	Married Filing Jointly - Taxable Income Over	Head of Household - Taxable Income Over
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 $201,775
32%	$201,776 to $256,225	$403,551 to $512,450	$201,776 to $256,200
35%	$256,226 to $640,600	$512,451 to $768,700	$256,201 to $640,600
37%	$640,601 or more	$768,701 or more	$640,601 or more

Table 1. Tax Brackets and Rates, 2026 (Source: IRS)

2026 has standard deductions for single filers increasing by $350; $700 for married couples filing jointly. Seniors over the age of 65 are eligible to claim an additional standard deduction of $2,050 for single filers and $1,650 for joint filers. Personal exemptions for 2026 remains at $0 (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017 )

Filing Status	Deduction Amount
Single	$16,100
Married Filing Jointly	$32,200
Head of Household	$24,150
Married Seniors Additional Deductions	$1,650
Unmarried Seniors Additional Deductions	$2,050

Table 2. 2026 Standard Deduction and Personal Exemption (Source: IRS)

Created in the 1960s, The Alternative Minimum Tax (AMT) was setup to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at IRS.Gov (SEE Table 3).

Filing Status	Exemption Amount
Unmarried Individuals	$90,100
Married Filing Jointly	$140,200

Table 3. 2026 Alternative Minimum Tax Exemptions (Source: IRS)

2026 keeps the AMT rate at 28%. This rate applies to excess AMTI of $244,500 for all taxpayers ($122,250 for married couples who file separate returns). The AMT exemptions phase out at 50 cents per dollar earned once a taxpayers AMTI reaches $500,000 for single filers and $1,000,000 for married taxpayers filing jointly. In 2026, the exemption will start phasing out at $626,350 in AMTI for single filers and $1,252,700 for married taxpayers filing jointly (SEE Table 4).

Filing Status	Threshold
Unmarried Individuals	$625,350
Married Filing Jointly	$1,252,700

Table 4. 2026 Alternative Minimum Tax Exemption Phaseout Thresholds

The 2026 Maximum Earned Income Tax Credit (EITC) for single and joint filers is $664 (no children) (SEE Table 5). The maximum credit is $4,427 for one child, $7,316 for two children, and $8,231 for three or more children.

Filing Status	No Children	One Child	Two Children	Three or More Children
Single or Head of Household
Income at Max Credit	$8,680	$13,020	$18,290	$18,290
Maximum Credit	$664	$4,427	$7,316	$8,231
Phaseout Begins	$10,860	$23,890	$23,890	$23,890
Phaseout Ends (Credit Equals Zero)	$19,540	$51,593	$58,629	$62,974
Married Filing Jointly
Income at Max Credit	$8,680	$13,020	$18,290	$18,290
Maximum Credit	$664	$4,427	$7,316	$8,231
Phaseout Begins	$18,140	$31,160	$31,160	$31,160
Phaseout Ends (Credit Equals Zero)	$26,820	$58,863	$65,899	$70,224

Table 5. 2026 Earned Income Tax Credit Parameters

Within the Tax Cuts and Jobs Act, there is an inclusion of a 20% deduction in 2026 for pass-through businesses with $201,775 of qualified business income for single taxpayers and $403,500 for married taxpayers filing jointly (SEE Table 6).

Filing Status	Threshold	Income Where Deduction Fully Phases In
Unmarried Individuals	$201,775	$276,775
Married Filing Jointly	$403,500	$553,500

Table 6. 2026 Qualified Business Income Deduction Thresholds (Source: IRS)

The maximum Child Tax Credit for 2026 is $2,200 per child who qualifies, with no adjustments for inflation. The amount that may be refunded for the Child Tax Credit is adjusted for inflation and will remain at $1,700 for 2026.

For 2026, the first $19,000 of gifts to any person is excluded from tax. Exclusions are increased to $194,000 from $190,000 for gifts to spouses who're not citizens of the United States.

Capital Gains, long term, are taxed using different rates and brackets compared to standard income.

Rate	Unmarried Individuals - Taxable Income Over	Married Filing Jointly - Taxable Income Over	Head of Household - Taxable Income Over
0%	$0	$0	$0
15%	$49,450	$98,900	$66,200
20%	$545,500	$613,700	$579,600

Table 7. 2026 Capital Gains Tax Rates & Brackets (Source: IRS)

The 2025 income ceiling for all listed tax brackets and for all filers, adjusted for inflation are listed below. The Seven federal income tax rates for 2025 are... 10% - 12% - 22% - 24% - 32% - 35% - 37% (no changes from 2023). The marginal income tax rate of 37% will apply to taxpayers with taxable income above $609,350 (single filers), and $731,200 is the target for married couples filing jointly...(SEE Table 1)

Rate	Single Individuals - Taxable Income Over	Married Filing Jointly - Taxable Income Over	Head of Household - Taxable Income Over
10%	Up to $11,600	Up to $23,200	Up to $16,550
12%	$11,600 up to $47,150	$23,200 up to $94,300	$16,550 up to $63,100
22%	$47,150 up to $100,525	$94,300 up to $201,050	$63,100 up to $100,500
24%	$100,525 up to $191,950	$201,050 up to $383,900	$100,500 up to $191,950
32%	$191,950 up to $243,725	$383,900 up to $487,450	$191,950 up to $243,700
35%	$243,725 up to $609,350	$487,450 up to $731,200	$243,700 up to $609,350
37%	At or above $609,350	At or above $731,200	At or above $609,350

Table 1. Tax Brackets and Rates, 2025 (Source: IRS)

2025 has standard deductions for single filers increasing by $750; $1500 for married couples filing jointly. Seniors over the age of 65 are eligible to claim an additional standard deduction of $1,950 for single filers and $1,550 for joint filers. Personal exemptions for 2025 remains at ZERO (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017 )

Filing Status	Deduction Amount
Single	$14,600
Married Filing Jointly	$29,200
Head of Household	$21,900
Married Seniors Additional Deductions	$1,550
Unmarried Seniors Additional Deductions	$1,950

Table 2. 2025 Standard Deduction and Personal Exemption (Source: IRS)

Created in the 1960s, The Alternative Minimum Tax (AMT) was setup to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two. More information can be found at IRS.Gov (SEE Table 3).

Filing Status	Exemption Amount
Unmarried Individuals	$85,700
Married Filing Jointly	$133,300

Table 3. 2025 Alternative Minimum Tax Exemptions (Source: IRS)

2025 keeps the AMT rate at 28%. This rate applies to excess AMTI of $232,600 for all taxpayers ($116,300 for married couples who file separate returns). The AMT exemptions phase out at 25 cents per dollar earned once a taxpayers AMTI hits a certain threshold. In 2025, the exemption will start phasing out at $609,350 in AMTI for single filers and $1,218,700 for married taxpayers filing jointly (SEE Table 4).

Filing Status	Threshold
Unmarried Individuals	$609,350
Married Filing Jointly	$1,218,700

Table 4. 2025 Alternative Minimum Tax Exemption Phaseout Thresholds

The 2025 Maximum Earned Income Tax Credit (EITC) for single and joint filers is $632 (no children) (SEE Table 5). The maximum credit is $4,213 for one child, $6,960 for two children, and $7,830 for three or more children.

Filing Status	No Children	One Child	Two Children	Three or More Children
Single or Head of Household
Income at Max Credit	$8,260	$12,390	$17,400	$17,400
Maximum Credit	$632	$4,213	$6,960	$7,830
Phaseout Begins	$10,330	$22,720	$22,720	$22,720
Phaseout Ends (Credit Equals Zero)	$18,591	$49,084	$55,768	$59,899
Married Filing Jointly
Income at Max Credit	$8,260	$12,390	$17,400	$17,400
Maximum Credit	$632	$4,213	$6,960	$7,830
Phaseout Begins	$17,250	$29,640	$29,640	$29,640
Phaseout Ends (Credit Equals Zero)	$25,511	$56,004	$62,688	$66,819

Table 5. 2025 Earned Income Tax Credit Parameters

Within the Tax Cuts and Jobs Act, there is an inclusion of a 20% deduction in 2025 for pass-through businesses with $191,950 of qualified business income for single taxpayers and $383,900 for married taxpayers filing jointly (SEE Table 6).

Filing Status	Threshold
Unmarried Individuals	$191,950
Married Filing Jointly	$383,900

Table 6. 2025 Qualified Business Income Deduction Thresholds (Source: IRS)

The maximum Child Tax Credit for 2025 is $2,000 per child who qualifies, with no adjustments for inflation. The amount that may be refunded for the Child Tax Credit is adjusted for inflation and increases from $1,600 to $1,700 in 2025.

For 2025, the first $18,000 of gifts to any person is excluded from tax. Exclusions are increased to $185,000 from $175,000 for gifts to spouses who're not citizens of the United States.

Capital Gains, long term, are taxed using different rates and brackets compared to standard income.

Rate	Unmarried Individuals - Taxable Income Over	Married Filing Jointly - Taxable Income Over	Head of Household - Taxable Income Over
0%	$0	$0	$0
15%	$47,025	$94,050	$63,000
20%	$518,900	$583,750	$551,350

Table 7. 2025 Capital Gains Tax Rates & Brackets (Source: IRS)

Interested in learning more if Radbod and Associates is right for you? Request a call back with a member of our team now.