From 2025
A bigger standard deduction
$15,750 single · $31,500 married filing jointly · $23,625 head of household
Most people take the standard deduction, and it went up for 2025, so more of your income is tax-free.
Updated for 2025 returns
2025 tax law changes, explained
The tax law signed on July 4, 2025 changed several things on the return you file in 2026. Here is what is new, in plain English, and who it helps.
Need the 2026 version? View it here
2025 to 2028
New deduction for seniors
Up to $6,000 for each person 65 or older
An extra deduction on top of the standard deduction, for you and your spouse if you are both 65+. It shrinks above $75,000 of income ($150,000 joint) and you do not need to itemize.
2025 to 2028
No tax on tips
Deduct up to $25,000 of qualified tips
For people in jobs where tips are customary. It shrinks above $150,000 of income ($300,000 joint), and you can claim it whether or not you itemize.
2025 to 2028
No tax on overtime
Deduct up to $12,500 of overtime premium ($25,000 joint)
Covers the extra "half" of time-and-a-half pay required by law. The same income limits as tips apply.
2025 to 2028
Car loan interest deduction
Deduct up to $10,000 of interest a year
For a loan on a new car, SUV, van or truck assembled in the U.S. and bought after 2024 for personal use. It shrinks above $100,000 of income ($200,000 joint).
From 2025
A larger child tax credit
$2,200 per child under 17, up to $1,700 refundable
Up from $2,000. The child, and at least one parent, need a Social Security number.
2025 to 2029
Higher limit on state and local taxes (SALT)
Deduct up to $40,000 ($20,000 married filing separately)
Up from $10,000 for people who itemize property and state income or sales taxes. The limit shrinks for incomes above $500,000.
Permanent
Tax brackets made permanent
The 10% to 37% brackets stay, adjusted for inflation
The lower rates that were due to expire after 2025 are now permanent.
Last year: 2025
Energy and electric vehicle credits are ending
Electric vehicles: bought by September 30, 2025 · Home energy: installed by December 31, 2025
You can still claim these on your 2025 return if you qualify, so keep the dealer's report and your installation receipts.
From 2026
Coming in 2026: charity without itemizing
Up to $1,000 single · $2,000 married filing jointly
From your 2026 return, you can deduct cash gifts to charity even if you take the standard deduction.
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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