The annual Bloomberg “Projected U.S. Tax Rates Report” aims to provide good news this year due to the potential tax savings that could be realized due to increases in deduction limitations, upward adjustments to tax brackets, and increases to numerous other key thresholds as well as adjustments made under the One Big Beautiful Bill Act (OBBBA). Now is the time to start strategizing and optimizing your tax planning, both for end of year 2025, and looking ahead to 2026.
Of particular note:
- For individuals, the report figures in different income tax rates with steeper adjustments for lower tax brackets. In addition, the report includes an adjustment to the child tax credit, which has never before been adjusted for inflation but is now under the OBBBA.
- For corporate taxpayers, modified phaseout amounts for the alternative minimum tax imposed under Section 55 of the Tax Code are included.
- For pass-through entities, there is an adjustment to the new minimum deduction for active qualified business income under Section 199A.
See the charts and comparisons of the current 2025 amounts and 2026 projections below –
Individual Income Tax Rate Brackets
| Married Filing Jointly And Surviving Spouses | |
| 2025 tax rate bracket income ranges | Projected 2026 tax rate bracket income ranges |
| 10% – $0 to $23,850 | 10% – $0 to $24,800 |
| 12% – Over $23,850 to $96,950 | 12% – Over $24,800 to $100,800 |
| 22% – Over $96,950 to $206,700 | 22% – Over $100,800 to $211,100 |
| 24% – Over $206,700 to $394,600 | 24% – Over $211,400 to $403,550 |
| 32% – Over $394,600 to $501,050 | 32% – Over $403,550 to $512,450 |
| 35% – Over $501,050 to $751,600 | 35% – Over $512,450 to $768,700 |
| 37% – Over $751,600 | 37% – Over $768,700 |
| Unmarried Individuals (other than surviving spouses and heads of households) | |
| 2025 Tax Rate Bracket Income Ranges | Projected 2026 Tax Rate Bracket Income Ranges |
| 10% – $0 to $11,925 | 10% – $0 to $12,400 |
| 12% – Over $11,925 to $48,475 | 12% – Over $12,4000 to $50,400 |
| 22% – Over $48,475 to $103,350 | 22% – Over $50,400 to $105,700 |
| 24% – Over $103,350 to $197,300 | 24% – Over $105,700 to $201,775 |
| 32% – Over $197,300 to $250,525 | 32% – Over $201,775 to $256,225 |
| 35% – Over $250,525 to $626,350 | 35% – Over $256,225 to $640,600 |
| 37% – Over $626,350 | 37% – Over $640,600 |
Standard Deduction
| Filing Status | 2025 Standard Deduction | Projected 2026 |
| Married filing jointly/surviving spouses | $30,000 | $32,200 |
| Heads of household | $22,500 | $24,175 |
| All other taxpayers | $15,000 | $16,100 |
Alternative Minimum Tax
| Filing status | 2025 AMT Exemption | Projected 2026 |
| Married filing jointly/surviving spouses | $137,000 | $140,200 |
| Unmarried individuals
(other than surviving spouses) |
$88,100 | $90,100 |
| Married filing separately | $68,500 | $70,100 |
| Estates and trusts | $30,700 | $31,400 |
Reach out to us: It’s time to “take a bite out of your tax bill” with a proactive, year end tax planning that can maximize tax savings. In the final months of the year, both individuals and business owners should focus on adjusting income, accelerating deductions, and optimizing tax-advantaged accounts. Need help before it’s too late in the year? Contact your TFG Accounting professionals toll free at 855-542-7537 or CPA@fuoco.com.
