Standard deduction
The 2025 figures were raised by the 2025 law after the IRS had first announced $15,000, $30,000 and $22,500. Anything still printing those earlier numbers is out of date. For 2026, the additional standard deduction for age 65 or blindness is $2,050 for unmarried filers and $1,650 for each married person, and a dependent's standard deduction is the greater of $1,350 or earned income plus $450. The separate $6,000 senior deduction for 2025 to 2028 is on top of these.
| Filing status | 2025 | 2026 |
|---|---|---|
| Single or married filing separately | $15,750 | $16,100 |
| Married filing jointly | $31,500 | $32,200 |
| Head of household | $23,625 | $24,150 |
2025 brackets
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $11,925 | $23,850 |
| 22% | $48,475 | $96,950 |
| 24% | $103,350 | $206,700 |
| 32% | $197,300 | $394,600 |
| 35% | $250,525 | $501,050 |
| 37% | $626,350 | $751,600 |
2026 brackets
The 2025 law made the seven rates permanent. Head of household and married filing separately brackets are in the IRS releases linked below.
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $12,400 | $24,800 |
| 22% | $50,400 | $100,800 |
| 24% | $105,700 | $211,400 |
| 32% | $201,775 | $403,550 |
| 35% | $256,225 | $512,450 |
| 37% | $640,600 | $768,700 |
Other 2026 figures people ask about
- Alternative minimum tax exemption: $90,100 single, $140,200 married filing jointly
- Maximum earned income tax credit: $8,231 with three or more children
- Annual gift tax exclusion: $19,000 per recipient
- Estate tax basic exclusion: $15,000,000
- New limit on itemized deductions for top-bracket taxpayers: a 5.4% reduction above $768,700 taxable income (joint) or $640,600 (single and head of household)
How Massachusetts compares
| Federal | Massachusetts | |
|---|---|---|
| Rate structure | Seven brackets, 10% to 37% | Flat 5% on most income; 8.5% short-term gains; 12% collectibles |
| High-income add-on | Top 37% bracket | 4% surtax above $1,083,150 (2025) per return |
| Standard deduction | $15,750 / $31,500 / $23,625 for 2025 | None |
| Personal exemptions | None | $4,400 single / $6,800 head of household / $8,800 joint |
How brackets actually work
Each rate applies only to the income inside its bracket, not to all of your income. Moving into a higher bracket never makes your total tax go down; it only means the next dollar is taxed at the higher rate.
That is why the rate people quote, their marginal rate, is higher than the share of income they actually pay, their effective rate.
Illustrative example for 2026. A single filer has $60,000 of taxable income. Tax is 10% of the first $12,400 ($1,240), plus 12% of the next $38,000 ($4,560), plus 22% of the remaining $9,600 ($2,112), for $7,912 in total. The marginal rate is 22%, but the effective rate is about 13.2%.
Out-of-date figures to ignore
- A 2025 standard deduction of $15,000, $30,000 or $22,500: replaced by $15,750, $31,500 and $23,625
- A $2,000 child tax credit: $2,200 for 2025 and 2026
- A $10,000 SALT cap for 2025 or 2026: $40,000 and $40,400
- Clean vehicle and home energy credits for 2026: expired
Checking your withholding
Brackets tell you the rate on each slice of income, not what you will owe. The IRS Tax Withholding Estimator is the simplest way to check whether your paycheck withholding matches your expected federal tax, particularly if you now claim the tips, overtime or senior deductions. Massachusetts withholding needs a separate check, since those deductions do not apply there.
Figures on this page were checked against the IRS and Massachusetts sources listed alongside on 28 Sep 2026. They change — confirm the current amount before relying on one.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
