2026 Tax Brackets: OBBBA Made TCJA Rates Permanent — What Each Bracket Means for You

# 2026 Tax Brackets: OBBBA Made TCJA Rates Permanent — What Each Bracket Means for You

> **Quick answer:** The One Big Beautiful Bill Act (OBBBA) permanently locked in the seven federal income tax brackets first set by the 2017 Tax Cuts and Jobs Act — preventing what would have been the largest middle-class tax increase in a generation. For 2026, all seven brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37%) remain, with inflation-adjusted thresholds. Without OBBBA, most Americans would have paid 3-4 percentage points more on large portions of their income.

The 2026 tax brackets are now settled — and for most Americans, the news is better than it could have been. The OBBBA locked in the seven rates introduced by the 2017 Tax Cuts and Jobs Act (TCJA), halting a scheduled reversion to higher pre-TCJA rates that would have cost a typical middle-income household thousands of dollars per year. Here is a complete breakdown of every bracket, what the thresholds mean in dollars, and a realistic estimate of what each income level saved compared to the alternative.

*This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.*

## The 7 Federal Income Tax Brackets for 2026

The IRS confirmed the following brackets for tax year 2026, incorporating inflation adjustments that are slightly more generous at the lower end — the OBBBA included a 4% inflation boost for the 10% and 12% brackets, versus the standard 2.3% for higher brackets.