The IRS adjusts tax brackets and other provisions annually for inflation. Here's what changed for the 2026 tax year and how it affects your paystub withholding.
Tax Bracket Changes
Federal income tax brackets increased by approximately 2.8% for 2026 to account for inflation. This means you can earn slightly more before moving into a higher tax bracket.
Single Filers
| Tax Rate | 2025 Income Range | 2026 Income Range | Change |
|---|---|---|---|
| 10% | $0 - $11,925 | $0 - $12,260 | +$335 |
| 12% | $11,925 - $48,475 | $12,260 - $49,830 | +$1,355 |
| 22% | $48,475 - $103,350 | $49,830 - $106,250 | +$2,900 |
| 24% | $103,350 - $197,300 | $106,250 - $202,850 | +$5,550 |
| 32% | $197,300 - $250,525 | $202,850 - $257,550 | +$7,025 |
| 35% | $250,525 - $626,350 | $257,550 - $643,900 | +$17,550 |
| 37% | Over $626,350 | Over $643,900 | +$17,550 |
Married Filing Jointly
| Tax Rate | 2025 Income Range | 2026 Income Range | Change |
|---|---|---|---|
| 10% | $0 - $23,850 | $0 - $24,520 | +$670 |
| 12% | $23,850 - $96,950 | $24,520 - $99,660 | +$2,710 |
| 22% | $96,950 - $206,700 | $99,660 - $212,500 | +$5,800 |
| 24% | $206,700 - $394,600 | $212,500 - $405,700 | +$11,100 |
| 32% | $394,600 - $501,050 | $405,700 - $515,100 | +$14,050 |
| 35% | $501,050 - $751,600 | $515,100 - $772,850 | +$21,250 |
| 37% | Over $751,600 | Over $772,850 | +$21,250 |
These bracket increases mean slightly lower taxes for most workers, even if your income stayed the same.
Standard Deduction Increases
The standard deduction—the amount you can subtract from your income before calculating taxes—also increased for 2026.
| Filing Status | 2025 | 2026 | Increase |
|---|---|---|---|
| Single | $15,000 | $15,420 | +$420 |
| Married Filing Jointly | $30,000 | $30,840 | +$840 |
| Head of Household | $22,500 | $23,130 | +$630 |
A higher standard deduction reduces your taxable income, which can lower your overall tax liability and increase your take-home pay.
Social Security Wage Base
The Social Security tax wage base—the maximum earnings subject to Social Security tax—increased for 2026.
| Year | Wage Base | Tax Rate | Maximum Tax |
|---|---|---|---|
| 2025 | $176,100 | 6.2% | $10,918.20 |
| 2026 | $181,200 | 6.2% | $11,234.40 |
This means if you earn above the wage base, you'll pay an additional $316.20 in Social Security taxes in 2026 compared to 2025.
What This Means for Your Paystub
If Your Income Stayed the Same
You'll likely see slightly higher take-home pay due to:
- Higher tax brackets reducing your marginal rate
- Increased standard deduction lowering taxable income
- Lower effective withholding throughout the year
If You Got a Raise
The bracket increases help offset bracket creep—where raises push you into higher tax brackets. A 2.8% raise roughly matches the bracket adjustments, keeping your effective tax rate stable.
Check your first 2026 paystub
Compare your federal withholding to your last 2025 paystub. You may notice a small decrease due to the updated tax tables.
Review your W-4 if needed
Your W-4 tells your employer how much tax to withhold. If you consistently owe taxes or get large refunds, consider submitting a new W-4 to adjust your withholding.
Plan for tax season
These changes affect your 2026 tax return (filed in early 2027). If you're self-employed or have other income, adjust your estimated quarterly payments accordingly.
FICA Taxes Remain Unchanged
Medicare and Social Security tax rates remain the same for 2026:
- Social Security: 6.2% (employee portion)
- Medicare: 1.45% (employee portion)
- Additional Medicare: 0.9% on wages over $200,000
While rates are unchanged, the Social Security wage base increase means higher earners will pay more in total Social Security taxes.
Key Takeaways
- Tax brackets increased ~2.8% — slightly lower taxes if income stayed flat
- Standard deduction up $420-$840 — more income shielded from taxes
- Social Security wage base up $5,100 — higher earners pay more FICA
- Medicare unchanged — same 1.45% rate with 0.9% additional over $200k