For 2026
A bigger standard deduction
$16,100 single · $32,200 married filing jointly · $24,150 head of household
Most people take the standard deduction. It rises with inflation for 2026, so more of your income is tax-free.
Updated for 2026 returns
2026 tax law changes, explained
The yearly inflation updates and the One Big Beautiful Bill changes that start in 2026 shape the return you file in 2027. Here is what is new, in plain English, and who it helps.
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New for 2026
Deduct gifts to charity without itemizing
Up to $1,000 in cash gifts ($2,000 married filing jointly)
Cash donations to qualified charities now lower your tax even if you take the standard deduction. Gifts to donor-advised funds do not count. If you itemize, gifts count above 0.5% of your income.
New for 2026
A bigger child and dependent care credit
Up to 50% of care costs: $1,500 for one child, $3,000 for two or more
Families with income up to $15,000 get the full 50%. It steps down to 35%, then to 20% at higher incomes. Workplace dependent care accounts can now hold up to $7,500.
For 2026
Child tax credit
$2,200 per child under 17, up to $1,700 refundable
The child, and at least one parent, need a Social Security number. It phases out above $200,000 of income ($400,000 married filing jointly).
2025 to 2028
No tax on tips and overtime
Up to $25,000 of tips · up to $12,500 of overtime premium ($25,000 joint)
Your W-2 now shows qualified tips and overtime, so these deductions are easier to claim. Both shrink above $150,000 of income ($300,000 joint).
2025 to 2028
Senior deduction and car loan interest
Up to $6,000 for each person 65 or older · up to $10,000 of car loan interest
Both come on top of the standard deduction. The car must be new, assembled in the U.S., and bought with a loan taken out after 2024.
2025 to 2029
State and local taxes (SALT)
Deduct up to $40,400 ($20,200 married filing separately)
For people who itemize property and state income or sales taxes. The limit shrinks for incomes above $505,000, but never below $10,000.
New for 2026
Changes if you itemize
Mortgage insurance is deductible again · a new limit in the top bracket
Private mortgage insurance (PMI) counts as mortgage interest again. In the 37% bracket, itemized deductions are worth up to 35 cents per dollar, and gambling losses count at 90%, up to your winnings.
Ended
Home energy and electric vehicle credits have ended
Not available on 2026 returns
The credits for home energy improvements and solar ended after 2025, and the electric vehicle credits ended for vehicles bought after September 30, 2025.
For 2026
New 1099 reporting limits
1099-NEC and 1099-MISC: $2,000 · 1099-K: over $20,000 and 200 sales
You may get fewer 1099 forms, but the income is still taxable, so keep your own records of what you were paid.
New for 2026
Trump accounts for children
Savings accounts for kids, with a $1,000 starter deposit for babies born 2025 to 2028
Families can add up to $5,000 a year from July 4, 2026, and employers can contribute too. We can help you open one and claim the starter deposit.
A summary for general information, not tax advice. Each rule has limits and conditions; your tax pro applies them to your situation.
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