Federal Brackets in 2026 — What OBBBA Locked In

OBBBA § 70401 made permanent the seven TCJA brackets (10/12/22/24/32/35/37). Per Rev. Proc. 2025-32, the 2026 single-filer thresholds are:

• 10% — up to $12,400
• 12% — $12,400 to $50,400
• 22% — $50,400 to $107,400
• 24% — $107,400 to $204,950
• 32% — $204,950 to $260,250
• 35% — $260,250 to $650,950
• 37% — above $650,950

The 2026 standard deduction is $15,750 single/MFS, $31,500 MFJ/QSS, $23,625 HoH. For a single Miami filer earning $250,000, the 2026 federal tax is roughly $54,500 — close to what they paid in 2025. There’s no sunset-driven jump.

Why Miami Filers Still Come Out Ahead

The federal bracket math now applies the same way in every state. The Miami advantage is that no state income tax piles on. Compare a $250,000 single earner:

• Miami: ~$54,500 total income tax (federal only)
• NYC: ~$54,500 federal + ~$15,200 state + ~$8,700 city = ~$78,400
• LA: ~$54,500 federal + ~$18,900 state = ~$73,400

That’s still a $19,000–$24,000 annual advantage from the state-tax gap. Compounded over a decade with investment returns on the savings, the difference is huge.

Domicile Rules — Getting It Right

Florida’s no-income-tax status pulls people from high-tax states. Their old states won’t let go easily. New York, California, and others audit former residents who claim Florida domicile. The documentation burden falls on you.

• Florida driver’s license and voter registration — get these immediately upon moving.
• Primary bank accounts transferred to a Florida branch.
• Professional affiliations (doctors, lawyers, accountants, gym memberships) based in Florida.
• Days-count log: New York’s 183-day rule is the obvious trap, but they also look at whether you maintain a “permanent place of abode” in NY. Keeping your Upper East Side apartment while claiming Miami domicile is a red flag.
• Declaration of Domicile: File this with the Miami-Dade County Clerk under Florida Statute 222.17. Simple form, official evidence.

California uses a broader “closest connections” test. Buying a condo in Brickell and spending January through March there won’t cut it if your kids are in school in Palo Alto.

Planning Strategies for 2026

• Max retirement contributions: Without state-tax savings to offset, reducing federal AGI matters more. The 2026 401(k) employee deferral limit is $24,500 ($31,000 if 50+).
• QBI deduction is permanent. OBBBA § 70401 made the 20% Section 199A deduction permanent. SSTB phase-in for 2025: $197,300 single / $394,600 MFJ; 2026 figures are indexed in Rev. Proc. 2025-32. Pass-through business owners in real estate, finance, and consulting should plan accordingly.
• SALT cap raised. OBBBA § 70410 raised the SALT cap to $40,000 (2025–2029) with a phase-down above $500,000 MAGI. Florida residents typically have low SALT to begin with (no state income tax, just property tax), but this still expands deductibility for high-property-tax areas like Coral Gables and Key Biscayne.
• Estate exemption $15M, permanent. OBBBA § 70411 set the federal estate and gift exemption at $15M per person (indexed) for decedents dying after Dec 31, 2025, made permanent. The 2025 figure was $13.99M; 2026 is $15M. No more pre-sunset urgency. Florida still has no state estate tax.
• Tips deduction (new). OBBBA § 70402 added an above-the-line deduction for qualified tip income up to $25,000/year for 2025–2028. Servers, valets, and salon staff across South Florida should make sure their W-2 captures tips so they can claim it.
• Bonus depreciation 100%. OBBBA § 70401 restored 100% bonus depreciation under IRC § 168(k) for property placed in service after Jan 19, 2025. Useful for short-term rental owners and small-business buyers of equipment or qualifying improvements.

Sources & References

• IRS — Tax Inflation Adjustments for Tax Year 2026 (Rev. Proc. 2025-32)
• 26 U.S.C. § 1 — Federal Income Tax Rates
• 26 U.S.C. § 164 — SALT Deduction (OBBBA § 70410)
• 26 U.S.C. § 199A — QBI Deduction (OBBBA § 70401)
• 26 U.S.C. § 2010 — Estate Exemption (OBBBA § 70411)
• 26 U.S.C. § 168 — Bonus Depreciation
• Florida Statute 222.17 — Declaration of Domicile
• NY DTF — Nonresident and Part-Year Resident FAQs
• California FTB — Personal Income Tax Rates
• Florida DOR — Corporate Income Tax (confirming no personal income tax)