What’s New with Federal Taxes 2026 Guide – The 2026 tax year brings important updates for American taxpayers, including inflation-adjusted brackets and deductions, plus major permanent changes from the One Big Beautiful Bill Act (OBBBA) signed in July 2025. These affect both your 2025 return (filed in 2026) and your 2026 taxes (filed in 2027). This guide covers the latest federal tax changes from trusted IRS sources, helping you plan, maximize credits and deductions, and avoid surprises. All figures are for tax year 2026 unless noted.
Overview of the 2026 Tax Filing Season and Key Deadlines
The IRS opened the 2026 filing season in late January 2026 for 2025 tax returns, with the standard deadline of April 15, 2026. Many OBBBA provisions apply retroactively to 2025 income, potentially leading to larger refunds for millions of taxpayers through higher standard deductions, an expanded Child Tax Credit, and brand-new deductions.
For tax year 2026 income (filed in 2027), the IRS released inflation adjustments in Revenue Procedure 2025-32, incorporating OBBBA amendments that make most Tax Cuts and Jobs Act (TCJA) individual provisions permanent.
Pro Tip: Use IRS Free File, Direct File (where available), or professional software. Direct deposit speeds up refunds, and paper checks are being phased out.
Major Legislative Changes from the One Big Beautiful Bill Act
The OBBBA, enacted July 4, 2025, permanently extends key TCJA provisions set to expire after 2025, including:
- The seven-bracket tax rate structure.
- Doubled standard deduction (with further inflation boosts).
- Elimination of personal exemptions (remains $0).
- 20% Qualified Business Income (QBI) deduction under Section 199A.
- Higher estate tax exemption.
It also introduces temporary enhancements (2025–2028) like new above-the-line deductions and boosts the Child Tax Credit. Additional changes include a higher SALT deduction cap and expanded employer childcare credits.
These reforms aim to reduce bracket creep and provide targeted relief for workers, families, and seniors.
2026 Standard Deduction Amounts
The standard deduction rises again for tax year 2026 thanks to inflation adjustments and OBBBA enhancements:
| Filing Status | 2026 Standard Deduction |
|---|---|
| Single / Married Filing Separately | $16,100 |
| Married Filing Jointly / Qualifying Surviving Spouse | $32,200 |
| Head of Household | $24,150 |
Additional for Seniors (65+ or blind): The regular extra standard deduction applies (about $2,000 single / $1,600 per spouse on joint returns, adjusted annually), plus a new OBBBA-enhanced senior deduction of $6,000 per qualifying person ($12,000 if both spouses on a joint return). This is available whether you itemize or take the standard deduction and phases out above $75,000 modified AGI (single) or $150,000 (joint).
Most taxpayers benefit more from the standard deduction than itemizing.
2026 Federal Income Tax Brackets
The OBBBA makes the TCJA’s seven marginal rates permanent, with inflation adjustments (extra boost to the bottom two brackets). Here are the 2026 brackets:
Single Filers
- 10%: $0 – $12,400
- 12%: $12,401 – $50,400
- 22%: $50,401 – $105,700
- 24%: $105,701 – $201,775
- 32%: $201,776 – $256,225
- 35%: $256,226 – $640,600
- 37%: Over $640,600
Married Filing Jointly
- 10%: $0 – $24,800
- 12%: $24,801 – $100,800
- 22%: $100,801 – $211,400
- 24%: $211,401 – $403,550
- 32%: $403,551 – $512,450
- 35%: $512,451 – $768,700
- 37%: Over $768,700
Head of Household
- 10%: $0 – $17,700
- 12%: $17,701 – $67,450
- 22%: $67,451 – $105,700 (note: narrower range than prior years)
- 24%: $105,701 – $201,775
- 32%: $201,776 – $256,200
- 35%: $256,201 – $640,600
- 37%: Over $640,600
Married filing separately mirrors single brackets.
New and Enhanced Individual Deductions (2025–2028)
OBBBA adds four new above-the-line deductions claimable on new Schedule 1-A (available to both standard deduction and itemizers):
- Qualified Tips: Up to $25,000 deduction for eligible tipped income.
- Qualified Overtime: Up to $12,500 (single) or $25,000 (joint) for overtime pay.
- Qualified Passenger Vehicle Loan Interest: Up to $10,000.
- Seniors Deduction: The $6,000 per person (detailed above).
These phase out at higher income levels. Check IRS guidance or tax software for exact qualified amounts and documentation.
Child Tax Credit and Family Benefits
The Child Tax Credit increases to $2,200 per qualifying child under 17 (up from $2,000), with inflation indexing starting in 2026. The refundable portion remains $1,700 for 2026. OBBBA made the expanded credit permanent.
Other family credits (Adoption Credit, Earned Income Tax Credit) also see inflation adjustments. Maximum EITC for three or more qualifying children rises to $8,231.
Other Notable 2026 Changes
- Alternative Minimum Tax (AMT): Exemptions rise to $90,100 (single, phases out at $500,000) and $140,200 (joint, phases out at $1,000,000).
- Estate Tax Exemption: Permanently raised to $15 million per person (inflation-adjusted going forward).
- Retirement & Savings: Contribution limits for IRAs, 401(k)s, and HSAs increase (consult IRS for exact 2026 figures). New “Trump Accounts” pilot for children under 18 offers $1,000 seed contributions for eligible kids.
- SALT Deduction: Cap increased under OBBBA (previously $10,000).
- QBI Deduction: Phase-in ranges widened for easier access.
How to Prepare and File Your 2026 Taxes?
- Gather new forms (including Schedule 1-A for extra deductions).
- Track qualified tips, overtime, and loan interest throughout the year.
- Use IRS tools or a tax professional—especially if claiming new deductions or if you’re 65+.
- Check IRS.gov for Publication 17, Form 1040 instructions, and Revenue Procedure 2025-32.
Tax laws can change, and individual situations vary. Always verify the latest details on IRS.gov or consult a qualified tax advisor. This guide reflects official IRS announcements as of early 2026.
Stay informed and file accurately to maximize your 2026 federal tax benefits! For the most current forms and instructions, visit the official IRS website.