The difference between the 12% and 22% federal tax bracket can mean thousands of dollars per year in retirement. Most seniors have more control over their taxable income than they realize — by understanding where bracket boundaries fall and how different income sources are counted.
2026 Federal Tax Brackets (Married Filing Jointly)
| Tax Rate | Taxable Income Range (MFJ) |
|---|---|
| 10% | $0 – $23,200 |
| 12% | $23,201 – $94,300 |
| 22% | $94,301 – $201,050 |
| 24% | $201,051 – $383,900 |
Taxable income = gross income minus standard deduction. Seniors 65+ receive an additional standard deduction ($1,550/person in 2026).
Three Strategies to Stay in a Lower Bracket
1. Spread Out RMDs and Withdrawals
Large single withdrawals are a common cause of unexpected bracket jumps. If you need $40,000 from your IRA, consider spreading it over two years instead of taking it all at once — especially if you're near a bracket boundary.
2. Use Roth Accounts for Excess Spending
Roth IRA withdrawals don't count as taxable income. If you need extra cash in a high-income year, draw from Roth instead of traditional accounts to stay below a bracket threshold.
3. Time Major Withdrawals with Your Income Calendar
If you have a year with unusually high income (large RMD, home sale, large distribution), consider strategies like bunching charitable deductions, making a QCD, or deferring other income to balance the impact.
Effective tax rates for most retirees are well below their marginal rate. A married couple with $80,000 of taxable income pays an effective rate of about 11–13% — not 22%. Focus on your effective rate, not just the marginal bracket, when evaluating income strategies.
Model Your Tax Bracket for 2026
See where you fall and test different income scenarios before the year ends.