Currently, the Tax Cuts and Jobs Act (TCJA) is expected to expire at the end of 2025 and many tax saving changes may be revert to pre-TCJA levels beginning in 2026. This includes a lower standard deduction, more strict tax brackets or rates, decreased Child Tax Credit, removal of the Credit for Other Dependents, increased SALT deduction, and more.
Below, find estimated income tax brackets for tax year 2026 unless Congress changes them. In addition to business tax cuts and changes to the United States tax system, the 2017 Tax Cuts and Jobs Act overhauled the individual income tax code, cutting taxes for the majority of all income groups. These cuts are set to expire starting for tax year 2026 unless some or all of them are extended. This 2026 tax estimator is based on the assumption that Congress changes the tax code.
The above rates are subject to change; these are based on the pre-TCJA rates.
One other popular item that will be changing is the standard deduction which was increased across the board to help taxpayers save money. This change is expected to revert these to pre-TCJA amounts as shown below; the table includes the 2024 standard deduction rates for comparison.
Single
$8,300, down from $14,600 in 2024
Married
$16,600, down from $29,200 in 2024
Head of Household
$9,350, down from $21,900 in 2024
The above amounts are subject to change; these are based on the pre-TCJA rates.
The Tax Cuts and Jobs Act provided tax savings for individuals through increased deductions and credits that made it easy for those without extensive tax knowledge to claim. Some additional changes can be found summarized in the table below. These are changes that are expected to be reverted beginning in 2026 unless Congress extends the TCJA or updates it. These are not guaranteed as nothing has been signed into law.
Tax Brackets (shown in detail above)
Rates which your income may fall into and be taxed at accordingly
Seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%
Seven brackets: 10%, 15%, 25%, 28%, 33%, 35%, 39.6%
Standard DeductionA set amount that taxpayers can deduct from their income
Single: $14,600
Married: $29,200
Head of Household: $21,900
Single: $8,300
Married $16,600
Head of Household: $9,350
Personal ExemptionsA claim an individual can make for their self, spouse, and dependents which can reduce their taxes
None, $0
$5,300
Child Tax CreditA federal tax credit that can offset some of the costs of raising a child
$2,000 per child under 17 years old, partially refundable, total amount begins phasing out for those earning $200,000 per year or $400,000 for married couples
$1,000 per child under 17 years old, fully refundable, total amount begins phasing out for those earning $75,000 per year or $110,000 for married couples
Credit for Other DependentsA smaller credit for dependents, but applies to dependents of all ages
$500 per dependent that does not qualify for the CTC, nonrefundable
No credit available
SALT DeductionAllows individuals to deduct state and local taxes from their income if they paid a significant amount of them
Limited to $10,000
No limit
Mortgage Interest DeductionAllows individuals to deduct mortgage interest they paid
Limited to interest paid on mortgage debt up to $750,000
Limited to interest paid on mortgage debt up to $1,000,000
Itemized DeductionsA list of expenses that you can deduct from your income if you had enough
Limited certain, less common itemized deductions; eliminated miscellaneous employee expense deduction; no overall limit
Less limits on most deductions, higher income earned may be reduced by 3%
AlimonyPayments made from one ex-spouse to another based on an official divorce decree
Not deductible for the payer, nontaxable for the payee
Deductible for the payer, taxable for the payee
Moving Expense DeductionAllows individuals to get back some money from an expensive move
Only available to members of the U.S. Armed Forces
Available to qualifying individuals
ABLE Account LimitsTax-favored accounts for certain individuals
Increased limit for contributions for employed individuals, allowed more to qualify for the
Saver's Tax Credit and roll over
tax-free 529 plan savingsLimits are equal to annual gift tax exemption; not eligible for Saver's Credit, 529 rollovers become taxable
Health Insurance Premium Tax Credit (PTC)A tax credit which can pay for some or all of your health insurance premiums, geared towards low-income taxpayers
Full coverage for those within 150% of federal poverty line; no income limit
Credit is not available above 400% of the federal poverty line; higher premium contribution percentages
Alternative Minimum Tax (AMT)Applies to wealthier individuals as a "fair share" tax
Exemption phaseout begins at $85,700 for singles and $133,300 for married filing jointly; taxpayers may owe the AMT if they earn at least $603,350 for singles or $1,218,700 for married couples
Exemption phaseout begins at $54,300 for singles and $84,500 for married filing jointly; taxpayers may owe the AMT if they earn at least $120,700 for singles or $160,900 for married couple
DepreciationFor business (small or any size), assets or investments can be deducted over time as they lose value
For 2022, claim a 100% bonus deduction, phasing out 20% each year (60% in 2024) - ironically, the depreciation deduction is depreciating
20% depreciation deduction in first year, 0% for each year following
Pass-Through DeductionBusinesses can deduct personal business taxes or self-employment taxes to save a very significant amount of money in taxes
Deduct 20% of qualifying business income
No deduction
Estate and Gift TaxInheritances and gifts are generally taxed at income with some exclusions
$13.61 million per person is excluded from income
$7.15 million per person is excluded from income
In addition to the above changes, there are several other changes which affect larger businesses, not discussed here as to focus on individual income taxes that apply to you.