Upcoming Tax Changes for 2026
Tax season is right around the corner. If you are a small business owner, freelancer, entrepreneur, or individual with more complicated returns, now is the time to start preparing and becoming aware of next year's tax laws.
For tax year 2026, federal income tax brackets and the higher standard deductions from the Tax Cuts and Jobs Act have been made permanent alongside new provisions from the One Big Beautiful Bill Act (OBBBA).
Standard Deductions & Brackets
Single filers: Standard deduction rises to $16,100.
Married filing jointly: Standard deduction rises to $32,200.
Head of household: Standard deduction rises to $24,150.
Marginal rates: Rates remain 10% to 37%, with the top 37% rate starting at $640,600 for singles and $768,700 for joint filers.
New and Enhanced Deductions
Seniors 65+: Qualify for an additional $6,000 deduction.
Tipped workers: Deduct up to $25,000 in qualified tips.
Overtime pay: Deduct up to $12,500 individually or $25,000 jointly.
Vehicle loans: Deduct up to $10,000 in passenger vehicle loan interest.
Family and Tax Credits
Child Tax Credit: Maximum credit increases to $2,200 per child (with a $1,700 refundable portion).
Gift exclusion: Annual exclusion is $19,000 per person.
Estate tax exclusion: Rises to $15,000,000.
Not all tax credits and deductions will apply to everyone. Speak with a tax professional to figure out what changes will affect your tax situation, and how. I'm offering free consults and am accepting new clients for tax season. Book a consult to see if we're a good fit!
Comments