Income Tax Brackets
The IRS adjusts federal income tax brackets each year for inflation. For the 2026 tax year, the seven marginal tax rates remain unchanged — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — but the income thresholds for each bracket have been adjusted upward. Understanding where your income falls and what that actually means for your tax bill is the starting point for any meaningful tax planning.
The tables below show the 2026 federal income tax brackets for single filers, married couples filing jointly, married couples filing separately, and head of household filers. Texas has no state income tax, so for most DFW residents, the federal brackets below represent your entire income tax picture.
2026 Income Tax Brackets
Tax rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
10% | $0 to $12,400 | $0 to $24,800 | $0 to $12,400 | $0 to $17,700 |
12% | $12,401 to $50,400 | $24,801 to $100,800 | $12,401 to $50,400 | $17,701 to $67,450 |
22% | $50,401 to $105,700 | $100,801 to $211,400 | $50,401 to $105,700 | $67,451 to $105,700 |
24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,775 | $105,701 to $201,775 |
32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,776 to $256,225 | $201,776 to $256,200 |
35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,226 to $384,350 | $256,201 to $640,600 |
37% | Over $640,600 | Over $768,700 | Over $384,350 | Over $640,600 |
2025 Income Tax Brackets
Tax rate | Single | Married filing jointly | Married filing separately | Head of household |
|---|---|---|---|---|
10% | $0 to $11,925 | $0 to $23,850 | $0 to $11,925 | $0 to $17,000 |
12% | $11,926–$48,475 | $23,851–$96,950 | $11,926–$48,475 | $17,001–$64,850 |
22% | $48,476–$103,350 | $96,951–$206,700 | $48,476–$103,350 | $64,851–$103,350 |
24% | $103,351–$197,300 | $206,701–$394,600 | $103,351–$197,300 | $103,351–$197,300 |
32% | $197,301–$250,525 | $394,601–$501,050 | $197,301–$250,525 | $197,301–$250,500 |
35% | $250,526–$626,350 | $501,051–$751,600 | $250,526–$375,800 | $250,526–$626,350 |
37% | Over $626,350 | Over $751,600 | Over $375,800 | Over $626,350 |
What the Tax Brackets Actually Mean
Most people misread how tax brackets work. Your entire income is not taxed at your top marginal rate. The brackets are layered — each rate applies only to the income within that specific range, not to everything you earned.
Example for a single filer with $100,000 in taxable income in 2026:
The first $11,925 is taxed at 10% — that is $1,192.50. The income from $11,926 to $48,475 is taxed at 12% — that is $4,386.00. The income from $48,476 to $100,000 is taxed at 22% — that is $11,334.50.
Total federal income tax: approximately $16,913. Effective (average) tax rate: approximately 16.9%. Marginal rate: 22% — but only on the last dollars earned in that range.
This distinction matters for planning. Adding $10,000 of additional income when you are in the 22% bracket does not cost you $2,200 if most of that income falls within the bracket. It costs you 22 cents on every dollar within that range. Understanding this allows you to evaluate whether a Roth conversion, a deferred compensation decision, or a business income timing choice actually moves you into a higher bracket — or just fills up the current one.
How Texas Taxpayers Are Affected by the 2026 Brackets
Texas has no personal state income tax. That means every DFW resident pays only federal income tax on ordinary income — unlike residents of California, New York, or other high-tax states who layer state income tax on top of the federal rates above.
This is a meaningful structural advantage. A married couple filing jointly in Texas with $200,000 of taxable income pays the federal rates shown in the table above and nothing more at the state level on that income. The equivalent couple in California would owe an additional 9.3% state rate on income in that range.
There are two Texas-specific considerations worth understanding alongside the federal brackets:
Texas Franchise Tax: Texas does not tax personal income, but it does tax most business entities on their gross revenue. Many small business owners assume their CPA is handling this separately. Confirm it explicitly every year. The franchise tax does not appear on your personal return — it is filed separately by the business entity.
No Deduction for Texas State Income Tax Under SALT: Because Texas has no state income tax, DFW taxpayers cannot use the expanded 2026 SALT deduction ($40,000 cap) for state income taxes the way residents of high-tax states can. However, Texas property taxes — which are substantial in the DFW area — do qualify for the SALT deduction, and for commercial property owners in Tarrant and Dallas counties, that deduction is now meaningfully more valuable than it was when the cap was $10,000.
Standard Deduction vs. Taxable Income — What You Actually Pay Tax On
The brackets above apply to taxable income, not to everything you earn. Taxable income is your gross income after subtracting adjustments and either the standard deduction or your itemized deductions — whichever is larger.
For 2026, the standard deductions are:
Single filers: $16,100 Married filing jointly: $32,200 Head of household: $24,200 Additional deduction for taxpayers age 65 or older: $6,000
This means a single filer with $80,000 of gross income who takes the standard deduction has taxable income of $63,900 — not $80,000 — when applying the brackets. Every dollar of the standard deduction reduces your taxable income before any bracket calculation begins.
Whether itemizing exceeds the standard deduction depends on the size of your deductible expenses — mortgage interest, property taxes (up to the SALT cap), charitable contributions, and certain other amounts. For most DFW homeowners with significant property taxes and mortgage interest, running both calculations is worth doing before filing.
