What's Changing in 2026
From updated tax bracket thresholds and a higher standard deduction to unresolved TCJA expiration questions, here's what every taxpayer should know heading into 2026 — with an interactive calculator to see your personal impact.
Key Changes for 2026
Tax Bracket Thresholds Increase
Lower taxesAll seven federal tax bracket thresholds rise with inflation — the 10% and 12% brackets get an extra OBBBA bump.
The IRS adjusts bracket thresholds annually for inflation. For 2026, the 22% bracket for single filers starts at $50,400 (up from $48,475 in 2025) — a bigger jump than a pure inflation adjustment would produce, because OBBBA gave the 10% and 12% brackets an extra year of inflation indexing before the 22% bracket kicks in. This means slightly more income is taxed at lower rates. The 10/12/22/24/32/35/37% TCJA rate schedule is permanent under OBBBA.
Standard Deduction Increases
Lower taxesSingle: $16,100 (up from $15,750). Married filing jointly: $32,200 (up from $31,500).
The standard deduction rises with inflation, reducing taxable income for most filers. OBBBA made the TCJA doubled standard deduction permanent.
OBBBA Made Key TCJA Provisions Permanent
Lower taxesNo sunset — lower individual rates, doubled standard deduction, $2,200 child tax credit, QBI, higher estate exemption are all permanent.
The One Big Beautiful Bill Act, signed July 2025, permanently extended the TCJA individual provisions that were set to expire after 2025. The 10/12/22/24/32/35/37% rate schedule, doubled standard deduction, Section 199A qualified business income deduction, and increased estate/gift exemption (now $15 million base for 2026) are all permanent. The child tax credit was permanently raised to $2,200 for 2025.
Child Tax Credit: $2,200 (Permanent)
Lower taxesOBBBA permanently raised the child tax credit to $2,200 per qualifying child.
OBBBA made the enhanced child tax credit permanent and raised it to $2,200 per qualifying child for 2025, up from the $2,000 TCJA level. The credit is indexed for inflation going forward.
SALT Deduction Cap: $40,400 with Phaseout
Lower taxesOBBBA raised the SALT cap to $40,400 ($20,200 MFS), with a phaseout above $505,000 AGI.
Effective for 2025 and later, OBBBA raised the state and local tax (SALT) deduction cap from $10,000 to $40,400 ($20,200 for MFS). The cap phases down $1-for-$1 for every dollar of AGI above $505,000 ($252,500 MFS), reverting toward the $10,000 floor ($5,000 MFS) for high earners. This mainly helps middle-income itemizers in high-tax states like California, New York, and New Jersey.
QBI (Section 199A) Deduction Permanent
Lower taxesOBBBA made the 20% qualified business income deduction permanent.
The Section 199A qualified business income deduction — which lets pass-through business owners deduct up to 20% of qualified business income — was set to expire after 2025 under TCJA. OBBBA made it permanent. Income phaseouts and SSTB limitations continue to apply.
2025 vs 2026 Contribution Limits
Retirement and health savings account limits for the upcoming year.
| Account | 2025 Limit | 2026 Limit |
|---|---|---|
| 401(k) / 403(b) | $23,500 | $24,500 +$1,000 |
| IRA (Traditional & Roth) | $7,000 | $7,500 +$500 |
| HSA (Self-only) | $4,300 | $4,400 +$100 |
| HSA (Family) | $8,550 | $8,750 +$200 |
Your Personal 2026 Tax Impact
Tax Difference
−$279
Less tax in 2026
Deduction Change
+$350
Standard deduction increase
Effective Rate Change
-0.37%
10.60% → 10.23%
What to Do Now
Take advantage of 2026 changes with these planning steps.
Max Out Your 401(k)
The 2026 limit rises to $24,500. Increasing contributions lowers your taxable income.
Review Your Withholding
New brackets mean your W-4 may need updating to avoid over- or under-withholding.
Calculate Your SALT Deduction
OBBBA raised the SALT cap to $40,400 in 2026. See how much of your state and local taxes you can deduct.
Compare Standard vs Itemized
With a higher standard deduction and raised SALT cap, check whether itemizing still makes sense.
Check Your State Tax Impact
Federal changes interact with your state tax. See how your total burden shifts.
Frequently asked questions
What are the 2026 federal tax brackets?
The seven federal tax rates stay the same for 2026 — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — permanently under OBBBA. The income thresholds rise for inflation: the 22% bracket for single filers now starts at $50,400, and the top 37% bracket starts at $640,600 for single filers or $768,700 for married filing jointly.
What is the standard deduction for 2026?
The 2026 standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. OBBBA made the TCJA-doubled standard deduction permanent, so it keeps rising with inflation each year instead of reverting to pre-2018 levels.
What is the SALT deduction cap in 2026?
The state and local tax (SALT) deduction cap is $40,400 for 2026 ($20,200 for married filing separately). Above $505,000 of AGI, the cap phases down $1-for-$1 as income rises, reverting toward the $10,000 floor for the highest earners.
How much is the Child Tax Credit worth in 2026?
The Child Tax Credit is $2,200 per qualifying child under 17, permanently set by OBBBA and indexed for inflation going forward. Up to $1,700 of that amount is refundable as the Additional Child Tax Credit, meaning families can receive it even if they owe no federal income tax.
What new OBBBA provisions start specifically in 2026?
Two OBBBA provisions begin with 2026: a charitable deduction for people who take the standard deduction (up to $1,000 for single filers, $2,000 for married filing jointly), and a 0.5%-of-AGI floor on itemized charitable deductions, which trims that first slice of AGI off itemizers' charitable write-offs. Provisions that started with 2025 returns — the tips deduction (up to $25,000), the overtime deduction ($12,500 single / $25,000 MFJ, phasing out above $150,000 / $300,000 income), and the $6,000-per-person senior bonus deduction — continue unchanged through 2028.
What tax break expired going into 2026?
The IRA-enhanced ACA premium tax credit subsidies expired December 31, 2025, and Congress did not extend them. 2026 marketplace premiums revert to the pre-ARPA subsidy schedule, including the 400%-of-federal-poverty-line income cliff that cuts off subsidies entirely above that threshold. Our ACA premium tax credit calculator shows how this changes your 2026 premiums.
What are the 2026 retirement account contribution limits?
The 401(k)/403(b) employee deferral limit rises to $24,500 for 2026, and the IRA contribution limit rises to $7,500. HSA contribution limits rise to $4,400 for self-only coverage and $8,750 for family coverage.
When do the 2026 tax rules actually affect my paycheck or my refund?
The 2026 brackets, standard deduction, and withholding tables apply to income you earn and paychecks you receive during calendar year 2026 — your employer should update your withholding to match. The tax return that uses these 2026 figures is the one you file in early 2027, due by April 15, 2027.
Sources
Related Calculators
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