Cut through the noise. See your money clearly.
The numbers we use in every meeting — now in one place
Federal tax brackets, retirement contribution limits, capital-gains rates, and a century of tax history — organized to be easier to read than the source documents, and cited so you can verify every figure. Below are the current 2026 figures (reflecting the One Big Beautiful Bill Act). Last reviewed June 2026.
2026 Federal Income Tax Brackets
Each marginal rate applies only to income within that range (taxable income, after deductions).
Married Filing Jointly
| Rate | Taxable income over | Up to |
|---|---|---|
| 10% | $0 | $24,800 |
| 12% | $24,800 | $100,800 |
| 22% | $100,800 | $211,400 |
| 24% | $211,400 | $403,550 |
| 32% | $403,550 | $512,450 |
| 35% | $512,450 | $768,700 |
| 37% | $768,700 | and up |
Single
| Rate | Taxable income over | Up to |
|---|---|---|
| 10% | $0 | $12,400 |
| 12% | $12,400 | $50,400 |
| 22% | $50,400 | $105,700 |
| 24% | $105,700 | $201,775 |
| 32% | $201,775 | $256,225 |
| 35% | $256,225 | $640,600 |
| 37% | $640,600 | and up |
Head of Household
| Rate | Taxable income over | Up to |
|---|---|---|
| 10% | $0 | $17,700 |
| 12% | $17,700 | $67,450 |
| 22% | $67,450 | $105,700 |
| 24% | $105,700 | $201,775 |
| 32% | $201,775 | $256,200 |
| 35% | $256,200 | $640,600 |
| 37% | $640,600 | and up |
2026 Standard Deduction & Capital Gains
| Filing status | Standard deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Head of Household | $24,150 |
Long-term capital-gains breakpoints (the taxable income above which each rate begins):
| Rate | Single | Married / Joint |
|---|---|---|
| 0% | $0 | $0 |
| 15% | $49,450 | $98,900 |
| 20% | $545,500 | $613,700 |
2026 Contribution Limits
| Account | 2026 limit |
|---|---|
| 401(k) / 403(b) / 457 elective deferral | $24,500 |
| Catch-up, age 50+ | $8,000 |
| Super catch-up, ages 60–63 (SECURE 2.0) | $11,250 |
| Traditional & Roth IRA | $7,500 |
| IRA catch-up, age 50+ | $1,100 |
| SEP / defined-contribution cap | $72,000 |
| SIMPLE plan deferral | $17,000 |
| HSA — self-only | $4,400 |
| HSA — family | $8,750 |
| HSA catch-up, age 55+ | $1,000 |
A Century of the Top Tax Rate: 1913–2026
The federal income tax began in 1913 with a top rate of 7%. It climbed above 90% during World War II and the 1950s, and has fallen in steps to 37% today.
| Year | Top rate | Context |
|---|---|---|
| 1913 | 7% | First federal income tax (16th Amendment) |
| 1944–45 | 94% | World War II peak |
| 1954–63 | 91% | 1950s plateau |
| 1964 | 77% | Kennedy-era cut |
| 1981 | 70% | Pre-ERTA |
| 1988 | 28% | Tax Reform Act low |
| 2013 | 39.6% | ATRA increase |
| 2018–2026 | 37% | TCJA rate, made permanent by OBBBA |
Top statutory marginal individual income tax rate. Source: Tax Foundation & Tax Policy Center historical tables.
Why “the same income” used to be taxed far more
Because brackets were not indexed to inflation until 1985, a middle-class income decades ago landed in a much higher marginal bracket than the same purchasing power does today. A single filer with $150,000 of taxable income today, compared across the decades:
| Tax year | Equivalent income | Marginal bracket | Top rate that year |
|---|---|---|---|
| 2026 (today) | $150,000 | 24% | 37% |
| 1980 | ≈ $37,400 | 49% | 70% |
| 1965 | ≈ $14,300 | 39% | 70% |
| 1955 | ≈ $12,200 | 43% | 91% |
Put another way: in 1950, a single filer reached the 51% bracket at just $16,000 of taxable income — about $219,000 in today’s dollars. That same income now sits in the 32% bracket, with a top rate of 37% instead of 91%. See also Joe Nocera, “Hollywood Stars Didn’t Pay 90 Percent Tax; They Created Loopholes” (Los Angeles Times, Jan. 29, 2019), on how those high headline rates coexisted with loopholes. Bracket figures verified against the 1950 IRS rate schedule and updated to current dollars.
Reading we cite in meetings
Two sources shaped how we talk about guaranteed retirement income — one from the financial press, one from academia:
- Jonathan Clements, “Getting Going” column, The Wall Street Journal (1994–2008) — the long-running personal-finance column that repeatedly made the case for immediate fixed annuities to make a nest egg last.
- Babbel & Merrill, “Investing Your Lump Sum at Retirement,” Wharton Financial Institutions Center (2007) — landmark research concluding retirees should use a large share of “excess” wealth to buy guaranteed lifetime income. Read the study »
Sources & Information
- IRS — 2026 inflation adjustments (Rev. Proc. 2025-32)
- IRS — 2026 retirement plan limits
- Tax Foundation — 2026 Tax Brackets
- Tax Foundation — Historical Income Tax Rates, 1862–2025
- U.S. Bureau of Labor Statistics — CPI Inflation Calculator
This page is provided by Brayshaw Financial Group for general educational purposes and reflects our understanding of federal tax rules as of June 2026. It is not tax, legal, or investment advice and does not account for your individual circumstances or applicable state taxes. Tax laws change and figures are adjusted annually — verify against current IRS guidance and consult a qualified professional before making decisions.