The One Big Beautiful Bill Act, signed in July 2025, changed a lot. Here is what matters most for your 2026 taxes.
For individuals and families
| Item | 2026 |
|---|---|
| Standard deduction | $16,100 single · $32,200 married filing jointly · $24,150 head of household |
| State and local tax (SALT) deduction cap | $40,400, reduced for higher incomes (starting around $500,000) |
| Child tax credit | $2,200 per child under 17, up to $1,700 refundable |
| Charitable deduction for non-itemizers | Up to $1,000 single · $2,000 joint (cash gifts) |
New deductions (2025 through 2028)
- Tips: up to $25,000 of qualified tips, phasing out above $150,000 of income ($300,000 joint).
- Overtime: up to $12,500 of qualified overtime premium ($25,000 joint), with the same income phase-out.
- Seniors: an extra $6,000 per person age 65 or older, phasing out above $75,000 ($150,000 joint).
- Car loan interest: up to $10,000 of interest on a loan for a new vehicle assembled in the United States.
These are available whether or not you itemize, but each has eligibility rules, so ask before you count on one.
Other changes
- Trump accounts: a new savings account for children, with a $1,000 government deposit for eligible children born 2025 through 2028.
- Itemized charitable gifts now have a 0.5%-of-income floor. See our charitable giving article.
- Home energy credits for things like solar panels, heat pumps and new windows ended after 2025.
- Retirement limits went up, and high earners' 401(k) catch-ups must now be Roth. See 2026 limits.
For business owners
- 100% bonus depreciation is permanent for qualifying property acquired after January 19, 2025.
- Section 179 expensing is up to $2,560,000 for 2026. See year-end deductions.
- The 20% qualified business income deduction is now permanent.
- 1099-NEC and 1099-MISC thresholds rose to $2,000 for 2026 payments. See 1099 changes.
- Domestic research and development costs can again be deducted right away instead of spread over five years.
- Employers now report tips and overtime on W-2s so employees can claim the new deductions.
What to do now
Check your withholding, review whether you qualify for the new deductions, and book a year-end planning conversation. Our 2026 year-end checklist is a good place to start.
This article is general information, current as of September 2026, and is not tax, legal or financial advice for your situation. Tax rules change often. Talk with us before acting on anything here.