Tax Changes To Note For 2026

With the One, Big, Beautiful Bill, there are some notable changes to how tax returns will be filed. Depending on how much you make and how you plan for the future, your 2026 taxes may be affected. Check out these top tax inflation adjustments for tax year 2026.

Standard Deduction

There are two types of deductions when it comes to your taxes: standard and itemized. Itemized deductions are a list of eligible, taxable expenses, such as mortgage interest, state taxes, and medical expenses. Each of these expenses require recordkeeping and additional forms. The rules for itemized deductions remain the same for 2026.

A standard deduction is a fixed amount set by the IRS. This can be subtracted from your taxable income to reduce your tax bill. For 2026, the standard deduction has increased.

  • For single taxpayers and married individuals filing separately = $16,100 (a $1,100 increase from last year)
  • For married couples filing jointly = $32,200 (a $2,200 increase from last year)
  • For heads of households = $23,625 (a $1,125 increase from last year)

Marginal Rates

Everyone gets taxed their “fair share” based on their income. For 2026, the new rates are:

  • 37%+ for incomes over $540,600 ($768,700 for married couple filing jointly)
  • 35% for incomes over $256,225 ($512,450 for married couples filing jointly)
  • 32% for incomes over $201,775 ($403,550 for married couples filing jointly)
  • 24% for incomes over $105,700 ($211,400 for married couples filing jointly)
  • 22% for incomes over $50,400 ($100,800 for married couples filing jointly)
  • 12% for incomes over $12,400 ($24,800 for married couples filing jointly)
  • 10% for incomes $12,400 or less ($24,800 for married couple filing jointly)

Medical Savings Accounts

Do you have a medical savings account as part of your insurance plan? This account can help reduce your overall tax bill if it meets certain requirements. For self-only coverage, the annual deductible on your insurance must not be less than $2,900 (up $50 from the 2025 tax year), but no more than $4,400 (an increase of $100 from the 2025 tax year). In addition, the maximum out-of-pocket expense amount is $5,850.

For family coverage, the annual deductible cannot be less than $5,850 (up $150 from the 2025 tax year), but no more than $8,750 (up $200 from the 2025 tax year). In addition, the maximum out-of-pocket expense amount is $10,700.

Earned Income Tax Credits

How many children do you have? Check the IRS qualifying standards. You may be eligible for an earned income tax credit up to $8,231. There are certain procedures in place to get the maximum credit.

Adoption Credits

The maximum credit allowed for qualified adoption expenses has increased from 2025. Now, you can get up to $17,670. Plus, for tax year 2026, the amount of the credit may be refundable is $5,120.

These are just some of the tax rules adjusted for 2026. If you want to learn about more adjustments, visit the IRS website here.