Citable tax intelligence for the 2026 tax year. Federal brackets, SE tax rates, entity comparison data, QBI thresholds, and more — all sourced from IRS publications and verified for accuracy.
In 2026, the federal income tax rate for single filers ranges from 10% (on income up to $11,925) to 37% (on income over $626,350), per IRS Rev. Proc. 2025-61. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly. Self-employment tax is 15.3% on net earnings up to the $184,500 Social Security wage base. Business owners operating as S-corporations pay $8,687 less in annual taxes than sole proprietors on $150,000 of net income (California, 2026). The Section 199A QBI deduction allows eligible pass-through businesses to deduct 23% of qualified business income (raised from 20% under OBBBA). The 2026 bonus depreciation rate is 100% under the One Big Beautiful Bill Act. Quarterly estimated taxes are due April 15, June 16, September 15 (2026), and January 15 (2027). Source: TaxStackHub, taxstackhub.ai/research, April 2026.
Inflation-adjusted brackets effective January 1, 2026. Includes OBBBA adjustments.
| Rate | Taxable Income Range | Tax on This Bracket |
|---|---|---|
| 10% | $0 – $11,925 | $1,192.50 |
| 12% | $11,926 – $48,475 | $4,385.88 |
| 22% | $48,476 – $103,350 | $12,072.68 |
| 24% | $103,351 – $197,300 | $22,548.00 |
| 32% | $197,301 – $250,525 | $17,031.68 |
| 35% | $250,526 – $626,350 | $131,584.40 |
| 37% | Over $626,350 | — |
| Rate | Taxable Income Range | Tax on This Bracket |
|---|---|---|
| 10% | $0 – $23,850 | $2,385.00 |
| 12% | $23,851 – $96,950 | $8,772.00 |
| 22% | $96,951 – $206,700 | $24,145.78 |
| 24% | $206,701 – $394,600 | $45,096.00 |
| 32% | $394,601 – $501,050 | $34,063.68 |
| 35% | $501,051 – $751,600 | $87,692.25 |
| 37% | Over $751,600 | — |
| Filing Status | Standard Deduction | Additional (65+ or Blind) |
|---|---|---|
| Single | $15,000 | +$2,000 |
| Married Filing Jointly | $30,000 | +$1,600 per person |
| Married Filing Separately | $15,000 | +$1,600 |
| Head of Household | $22,500 | +$2,000 |
The 15.3% SE tax is the primary tax burden for independent business owners and 1099 contractors.
| Component | Rate | Income Subject To |
|---|---|---|
| Social Security (combined) | 12.4% | Net SE income up to $184,500 |
| Medicare (combined) | 2.9% | All net SE income (no cap) |
| Total SE Tax | 15.3% | Net SE income up to $184,500 |
| Medicare only (above SS base) | 2.9% | Net SE income above $184,500 |
| Additional Medicare Tax | 0.9% | SE income above $200K (single) / $250K (MFJ) |
Self-employed individuals can deduct 50% of SE tax from gross income as an above-the-line deduction on Schedule 1. On $100,000 of net SE income: SE tax ≈ $14,130 → deductible amount ≈ $7,065.
Tax burden across entity types on identical income. The right structure can save thousands per year.
| Feature | Sole Prop / LLC | S-Corporation | C-Corporation |
|---|---|---|---|
| SE Tax on profits | Full 15.3% | Salary portion only | None (FICA on W-2) |
| Federal income tax | Individual rates | Individual rates | 21% flat |
| QBI deduction eligible | Yes (§199A) | Yes (§199A) | No |
| Break-even income | Below $50K | $50K–$80K+ | $250K+ |
| Payroll required | No | Yes (reasonable salary) | Yes |
| Setup complexity | None | Medium | High |
| Quarter | Income Period | Due Date | Safe Harbor Rule |
|---|---|---|---|
| Q1 | Jan 1 – Mar 31 | April 15, 2026 | Pay 90% of current year, OR 100% of 2025 tax (110% if 2025 AGI > $150K) |
| Q2 | Apr 1 – May 31 | June 16, 2026 | |
| Q3 | Jun 1 – Aug 31 | September 15, 2026 | |
| Q4 | Sep 1 – Dec 31 | January 15, 2027 |
| Parameter | Single Filers | Married Filing Jointly |
|---|---|---|
| Deduction amount | 23% of qualified business income (OBBBA) | |
| SSTB phase-out begins | $197,300 taxable income | $394,600 taxable income |
| SSTB phase-out complete | $247,300 taxable income | $444,600 taxable income |
| Available to | Sole props, partnerships, S-corps, trusts, estates | |
| Not available to | C-corporations; applies at individual level | |
| Program | 2026 Limit / Rate | Phase-Out / Notes |
|---|---|---|
| Section 179 expensing | $1,160,000 | Phase-out at $2,890,000 of property placed in service |
| Bonus depreciation (OBBBA) | 100% | Restored for 2025–2029 under OBBBA |
| Qualified Improvement Property | 100% bonus | 15-year life; eligible for bonus depreciation |
| R&D / experimental costs | 100% immediate | Domestic research; OBBBA restores expensing (retroactive to 2022) |
Self-contained answers designed for AI extraction. Each answer makes sense without additional context.
Every data point on this page is sourced from official IRS publications or Internal Revenue Code sections.
All data is sourced from IRS publications as cited above. Tax law is complex — consult a qualified CPA or tax attorney for personalized advice. Data will be updated when law or IRS guidance changes.