Disclaimer: This article is for educational purposes only and is not tax, legal, or financial advice. Tax rules change periodically, always check current IRS guidance or consult a qualified tax professional.
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Quick Answer: How Much Is Tax-Free in 2026?
The amount you can earn tax-free in 2026 depends on your filing status. At minimum, the standard deduction shields this much income from federal tax:
- Single: $16,100
- Married Filing Jointly: $32,200
- Head of Household: $24,150
Seniors 65+ can shield even more. A single senior could protect up to $24,150 by combining the standard deduction ($16,100) + the age-65 addition ($2,050) + the new OBBBA senior bonus deduction ($6,000). Add 0% capital gains brackets and tax-free account withdrawals, and the total climbs higher still.
Key Takeaways
- The standard deduction is your baseline. Every filer gets $16,100 (single), $32,200 (married filing jointly), or $24,150 (head of household) in tax-free income before the first bracket applies.
- Seniors get a triple benefit. Taxpayers 65+ can stack the standard deduction, the additional senior deduction ($2,050 single / $1,650 per spouse), and the new $6,000 OBBBA bonus deduction for a combined tax-free floor of up to $24,150 (single) or $47,500 (married filing jointly).
- Long-term capital gains can be 100% tax-free. The 0% capital gains bracket covers taxable income up to $49,450 (single) or $98,900 (married filing jointly), so investment profits may owe zero federal tax.
- Social Security benefits may be untaxed. If your combined income stays below $25,000 (single) or $32,000 (married filing jointly), your Social Security benefits are entirely tax-free.
- Tax-free accounts add up. Roth IRA withdrawals, HSA distributions for medical expenses, and municipal bond interest are all federally tax-free with no income cap.
- Filing threshold differs from tax-free threshold. You may not need to file a return at all if your gross income is below $16,100 (single under 65), but filing can still be worthwhile if you qualify for refundable credits.
What Does "Tax-Free" Income Actually Mean?
"Tax-free income" can mean three different things, and mixing them up leads to confusion:
- Income below the filing threshold. You earned so little that the IRS doesn't require a return. You owe nothing and don't need to file (though you still can).
- Income sheltered by deductions. You file a return, but the standard deduction wipes out your taxable income, so your federal tax bill is $0.
- Income types excluded from tax by law. Roth IRA withdrawals, HSA distributions for medical expenses, and municipal bond interest are exempt from federal income tax regardless of how much you earn.
This guide covers all three categories. The standard deduction sets your baseline tax-free floor. Investment rules and tax-advantaged accounts expand it. Filing thresholds tell you whether you even need to interact with the IRS.
An important caveat: we're talking about federal income tax only. State income taxes have their own rules, and payroll taxes (Social Security and Medicare) apply to earned income starting from dollar one. Use the Tax Calculator US app to see how federal and state taxes combine for your situation.
2026 Standard Deduction: Your Baseline Tax-Free Income
The standard deduction is the biggest source of tax-free income for most Americans. It's subtracted from your gross income before the tax brackets apply. For 2026, per IRS Revenue Procedure 2025-32:
| Filing Status | Standard Deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Head of Household | $24,150 |
| Married Filing Separately | $16,100 |
If you're a single filer under 65 with $16,100 or less in gross income, your taxable income is $0 after applying the standard deduction. You owe nothing in federal income tax.
Additional deduction for seniors (65+) and blind filers
Taxpayers who are 65 or older, or who are legally blind, get an additional standard deduction on top of the base amount:
- Single or Head of Household: $2,050 additional
- Married (per qualifying spouse): $1,650 additional
A single filer who is both 65+ and blind qualifies for $2,050 twice ($4,100 additional).
The new OBBBA senior bonus deduction
The One Big Beautiful Bill Act introduced a new deduction for taxpayers 65 and older: up to $6,000 per qualifying taxpayer ($12,000 for a joint return where both spouses are 65+). This stacks on top of the regular and additional standard deductions.
The bonus phases out once modified AGI exceeds $75,000 (single) or $150,000 (joint). Below those thresholds, you get the full amount.
Combined tax-free floor for seniors
| Filing Status | Standard Deduction | Age 65+ Addition | OBBBA Bonus | Total Tax-Free |
|---|---|---|---|---|
| Single, 65+ | $16,100 | $2,050 | $6,000 | $24,150 |
| MFJ, both 65+ | $32,200 | $3,300 | $12,000 | $47,500 |
| HoH, 65+ | $24,150 | $2,050 | $6,000 | $32,200 |
A married couple where both spouses are 65+ and earning below $150,000 can shield $47,500 from federal tax through deductions alone, before any other strategies.
0% Capital Gains: Tax-Free Investment Income
Long-term capital gains (profits on assets held over one year) and qualified dividends have their own tax rates, separate from ordinary income. The lowest rate is 0%:
| Filing Status | 0% Rate Applies Up To (Taxable Income) |
|---|---|
| Single | $49,450 |
| Married Filing Jointly | $98,900 |
| Head of Household | $66,200 |
These thresholds apply to taxable income (after the standard deduction). Combining the standard deduction with the 0% bracket, a single filer could have up to roughly $65,550 in gross income ($16,100 + $49,450) and pay zero federal tax on long-term gains.
How this works in practice
A single filer with $20,000 in wages and $30,000 in long-term capital gains has $50,000 in gross income. After the $16,100 standard deduction, taxable income is $33,900, well within the $49,450 threshold. All capital gains are taxed at 0%.
One caveat: capital gains stack on top of ordinary income. If your ordinary taxable income is near the threshold, adding gains could push some into the 15% bracket.
Tax-gain harvesting
Investors in the 0% bracket can use tax-gain harvesting: selling appreciated investments to realize gains at 0%, then repurchasing immediately (there's no wash-sale rule for gains). This resets your cost basis higher, reducing future taxable gains.
Other Tax-Free Income Sources in 2026
Beyond deductions and capital gains brackets, several types of income are federally tax-free by law.
Social Security benefits
Your Social Security benefits are completely tax-free if your combined income stays below these thresholds:
- Single: $25,000
- Married Filing Jointly: $32,000
Combined income = AGI + nontaxable interest + 50% of your Social Security benefits. Above these thresholds, up to 50% of benefits become taxable. Above $34,000 (single) or $44,000 (MFJ), up to 85% are taxable. These thresholds haven't been adjusted for inflation since 1993, so more retirees cross them each year.
Roth IRA withdrawals
Qualified Roth IRA distributions are 100% tax-free, including investment gains. To qualify, you must be at least 59-1/2 and the account must have been open for five years. The 2026 contribution limit is $7,500 ($8,600 if 50+). No required minimum distributions apply during the owner's lifetime.
HSA withdrawals for medical expenses
HSA distributions for qualified medical expenses are tax-free at any age. HSAs offer a triple tax advantage: deductible contributions, tax-free growth, and tax-free medical withdrawals. The 2026 limits:
- Self-only coverage: $4,400
- Family coverage: $8,750
- Catch-up (age 55+): additional $1,000
Municipal bond interest
Interest from municipal bonds is generally exempt from federal income tax. Bonds issued by your own state are often exempt from state tax too.
Gifts and inheritances
Money received as a gift is not taxable income to the recipient. The annual gift exclusion for 2026 is $19,000 per recipient per year (no gift tax return required). The lifetime estate and gift exemption is $15 million per individual. Inheritances are also tax-free to the heir (though the estate may owe estate tax above the exemption).
Foreign earned income exclusion
U.S. citizens living abroad can exclude up to $132,900 of foreign earned income from federal tax in 2026 if they meet the bona fide residence or physical presence test.
Minimum Income to File Taxes in 2026
The filing threshold is the income level below which you don't need to file a federal return. It's related to your tax-free income amount but not identical.
2026 filing thresholds (for tax year 2025 returns filed in 2026)
| Filing Status | Age | Filing Threshold |
|---|---|---|
| Single | Under 65 | $15,750 |
| Single | 65+ | $17,750 |
| Married Filing Jointly | Both under 65 | $31,500 |
| Married Filing Jointly | One spouse 65+ | $33,100 |
| Head of Household | Under 65 | $23,625 |
| Head of Household | 65+ | $25,625 |
Self-employment exception
If you are self-employed, you must file a return if your net self-employment earnings exceed $400, regardless of your total income. Self-employment tax (Social Security and Medicare) applies from that threshold.
When filing below the threshold makes sense
Even below the threshold, filing can put money back in your pocket:
- Federal taxes were withheld from your paycheck. Filing is the only way to get that money refunded.
- You qualify for the Earned Income Tax Credit. The maximum EITC for 2026 is $8,231 (three or more children). It's refundable, so the IRS sends you money even if you owe no tax.
- You qualify for the Child Tax Credit. At $2,200 per child with a refundable portion, low-income families can receive a check.
- You qualify for education credits or the premium tax credit. Both can result in a refund.
The filing threshold tells you when you must file. Your actual tax-free income (determined by deductions and credits) may be higher or lower.
How to Calculate Your Tax-Free Income
Your personal tax-free income total depends on your filing status, age, and the types of income you receive. Work through it in this order:
- Start with your standard deduction (or itemized deductions if higher). This is your guaranteed tax-free floor for ordinary income.
- Add age-related deductions if you're 65+: the additional standard deduction plus the OBBBA senior bonus deduction (if your income is below the phase-out).
- Check the 0% capital gains bracket if you have investment income. Any long-term gains that fit within the threshold after subtracting ordinary taxable income are tax-free.
- Add tax-exempt income sources: qualified Roth IRA withdrawals, HSA distributions for medical expenses, municipal bond interest, and gifts received.
- Check Social Security thresholds if you receive benefits. Keep your combined income below $25,000 (single) or $32,000 (MFJ) to keep benefits entirely tax-free.
The total adds up fast. A retired married couple (both 65+, income under $150,000) could combine $47,500 in deduction-shielded income with the 0% capital gains bracket, tax-free Social Security, and unlimited Roth withdrawals. The exact number depends on how these pieces interact, since capital gains stack on top of ordinary income.
The Tax Calculator US app lets you enter your income, filing status, and deductions to calculate your federal tax liability. It's free and runs entirely on your device.
Tax-Free Income Examples for 2026
These examples show how different taxpayers can combine deductions, brackets, and tax-free income sources. Your own numbers will differ depending on your specific income mix and filing status.
- Gross income: $16,100 (part-time wages)
- Standard deduction: $16,100
- Taxable income: $0
- Federal income tax: $0
Every dollar of this filer's income is covered by the standard deduction. They still owe payroll taxes (Social Security and Medicare) on wages, but their federal income tax bill is zero. If their employer withheld any federal income tax, they get it all back by filing a return.
- Social Security benefits: $36,000 combined
- Pension income: $10,000
- Long-term capital gains: $15,000
- Combined income for SS test: $10,000 (pension) + $18,000 (half of SS) + $15,000 (gains) = $43,000
Since their combined income exceeds $32,000, up to 85% of their Social Security benefits may be taxable. Let's assume $20,000 of Social Security is taxable.
- Adjusted gross income: $20,000 (taxable SS) + $10,000 (pension) + $15,000 (gains) = $45,000
- Standard deduction: $32,200 + $3,300 (both 65+) + $12,000 (OBBBA bonus) = $47,500
- Taxable income: $0 (deductions exceed AGI)
- Federal income tax: $0
Despite $61,000 in total income, this couple owes zero federal income tax. The stacked senior deductions wipe out their entire taxable income.
- Wage income: $10,000 (part-time)
- Long-term capital gains: $50,000
- Gross income: $60,000
- Standard deduction: $16,100
- Taxable income: $43,900
Taxable income of $43,900 falls below the $49,450 single-filer threshold for the 0% capital gains rate. Since all income fits within the threshold, the entire $50,000 in capital gains is taxed at 0%.
- Tax on ordinary income ($10,000 - $16,100 = $0 taxable): $0
- Tax on capital gains (0% rate): $0
- Federal income tax: $0
This filer earned $60,000 and owes no federal income tax. The standard deduction covered wages, and the 0% bracket covered investment profits. That's exactly the scenario where tax-gain harvesting pays off: selling appreciated stock while your income is low enough to pay 0%.
- Wage income: $14,000
- Roth IRA withdrawal: $8,000 (qualified)
- HSA withdrawal: $3,000 (medical expenses)
- Total cash received: $25,000
Roth IRA and HSA distributions don't count as gross income. Only the $14,000 in wages appears on the tax return.
- Gross income: $14,000
- Standard deduction: $16,100
- Taxable income: $0
- Federal income tax: $0
This filer received $25,000 in cash but owes zero federal income tax. The Roth and HSA withdrawals are invisible for income tax purposes, and wages are fully covered by the standard deduction.
Frequently Asked Questions
Tips to Maximize Your Tax-Free Income
- Know your standard deduction cold. About 90% of filers take the standard deduction. It's your guaranteed tax-free floor, and planning around it is the simplest way to cut your tax bill.
- Stack senior deductions if you qualify. If you're 65+ with income below the OBBBA phase-out, you get three layers of deduction: base standard deduction + age addition + senior bonus. Make sure your tax software or preparer applies all three.
- Harvest capital gains in low-income years. If your taxable income is below the 0% capital gains threshold, consider selling appreciated investments to lock in gains at a 0% rate and reset your cost basis higher.
- Keep Social Security combined income below the threshold. For retirees, managing withdrawals from traditional IRAs and taxable accounts to stay below $25,000 (single) or $32,000 (joint) in combined income keeps Social Security benefits entirely tax-free.
- Prioritize Roth and HSA withdrawals when possible. These distributions don't count as gross income, which keeps your AGI lower and may help you qualify for other tax breaks like the 0% capital gains rate or tax-free Social Security.
- File even when you don't have to. If you earned below the filing threshold but had taxes withheld from a paycheck, filing is the only way to get that money back. Check for refundable credits like the EITC, which can pay you even if your tax liability is zero.
References
- IRS Revenue Procedure 2025-32 (2026 Inflation Adjustments) — Official IRS inflation adjustments for tax year 2026, including standard deductions, bracket thresholds, and contribution limits.
- Tax Foundation — 2026 Tax Brackets and Federal Income Tax Rates — Analysis of 2026 tax brackets, standard deductions, and additional deductions for seniors.
- CNBC — New $6,000 Tax Deduction for Seniors — Coverage of the OBBBA senior bonus deduction, including phase-out thresholds and eligibility rules.
- CNBC — Capital Gains Tax Rates for 2026 — 2026 long-term capital gains thresholds and the 0% rate bracket by filing status.
- SSA — Benefits Planner: Income Taxes and Your Social Security Benefits — Social Security Administration guidance on when benefits become taxable based on combined income.
- IRS — Check If You Need to File a Tax Return — IRS tool and guidance on minimum income filing thresholds by filing status and age.