2026 tax rates & key figures
A quick reference to the main U.S. federal and Mississippi tax rates, brackets and limits for the 2026 tax year.
Please note
These figures are a summary for general guidance only, based on IRS inflation adjustments and the 2025 federal tax law. Rules change and many items phase out at higher incomes — always check current IRS and Mississippi DOR guidance or talk to us before acting.
Federal income tax brackets (2026)
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 |
| 37% | Over $640,600 | Over $768,700 |
Brackets apply to taxable income (after deductions). Head of household and married filing separately brackets differ — ask us for details.
Standard deduction (2026)
| Filing status | Amount |
|---|---|
| Single / married filing separately | $16,100 |
| Married filing jointly | $32,200 |
| Head of household | $24,150 |
| Additional senior deduction (age 65+, 2025–2028) | $6,000 per person |
Long-term capital gains & qualified dividends (2026)
| Rate | Single | Married filing jointly |
|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 |
| 20% | Over $545,500 | Over $613,700 |
- Net investment income tax: 3.8% above $200,000 MAGI (single) / $250,000 (joint).
- Short-term gains (held one year or less) are taxed at ordinary income rates.
- Home sale exclusion: up to $250,000 (single) / $500,000 (joint) if ownership and use tests are met.
Key credits & deductions
| Item | 2026 |
|---|---|
| Child tax credit (per qualifying child) | $2,200 |
| State and local tax (SALT) deduction cap | $40,400 |
| Qualified business income (QBI) deduction | Up to 20% |
| Qualified tips deduction (2025–2028) | Up to $25,000 |
| Qualified overtime deduction (2025–2028) | Up to $12,500 / $25,000 joint |
Many of these phase out at higher incomes.
Payroll & self-employment tax (2026)
| Tax | Employee | Employer |
|---|---|---|
| Social Security (wages up to $184,500) | 6.2% | 6.2% |
| Medicare (all wages) | 1.45% | 1.45% |
| Additional Medicare (wages over $200,000) | 0.9% | — |
| Federal unemployment (FUTA, first $7,000) | — | 0.6% net |
Self-employment tax is 15.3% on 92.35% of net self-employment earnings (12.4% Social Security up to the wage base plus 2.9% Medicare). Half is deductible.
Federal minimum wage: $7.25 per hour. Mississippi has no separate state minimum wage.
Retirement & HSA limits (2026)
| Plan | Limit |
|---|---|
| 401(k) / 403(b) employee deferral | $24,500 |
| 401(k) catch-up (age 50+) | $8,000 |
| 401(k) super catch-up (age 60–63) | $11,250 |
| IRA / Roth IRA contribution | $7,500 |
| IRA catch-up (age 50+) | $1,100 |
| SEP-IRA / total defined contribution limit | $72,000 |
| HSA — self-only / family coverage | $4,400 / $8,750 |
Business taxes
| Item | 2026 |
|---|---|
| C-corporation federal income tax rate | 21% |
| Section 179 expensing limit | $2,560,000 |
| Section 179 phase-out threshold | $4,090,000 |
| Bonus depreciation (property acquired after Jan. 19, 2025) | 100% |
| Form 1099-NEC / 1099-MISC reporting threshold (payments in 2026) | $2,000 |
| Business meals (most) | 50% deductible |
Estate & gift tax (2026)
| Item | 2026 |
|---|---|
| Basic exclusion amount (per person) | $15,000,000 |
| Annual gift exclusion (per recipient) | $19,000 |
| Top estate & gift tax rate | 40% |
| Mississippi estate or inheritance tax | None |
IRS standard mileage rates (2026)
| Purpose | Rate per mile |
|---|---|
| Business | 72.5¢ |
| Medical & qualified moving | 20.5¢ |
| Charitable | 14¢ |
Mississippi taxes (2026)
| Item | Rate |
|---|---|
| Individual income tax — first $10,000 of taxable income | 0% |
| Individual income tax — income over $10,000 | 4.0% |
| State sales tax (general rate) | 7% |
| Retirement income (Social Security, qualified pensions, IRAs) | Generally exempt |
Mississippi is phasing its individual income tax rate down in future years. Local sales tax additions apply in some cities and counties.
Need help applying these figures?
Tax rates are only the start — what matters is how they apply to you. Book a free consultation and we’ll work through your situation.