While a new year in many cases brings new tax updates, some years bring more changes than others. Many Americans have been especially watchful of 2026, when 2017’s Tax Cuts and Jobs Act (TCJA) provisions were set to expire.

If that had happened, tax rates would have increased while the standard deduction would have been slashed. New legislation was passed in summer 2025, though, locking in the savings many taxpayers had grown accustomed to – and introducing some new changes as well.

Read on to learn more about some of the key tax changes for 2026.

What changes are happening to the tax code in 2026?

The IRS makes annual inflation adjustments to more than 60 tax provisions, including tax bracket income thresholds, standard deductions and retirement contribution limits.¹ While these routine adjustments will occur as usual for tax year 2026, recently passed legislation will also introduce some additional changes.

The One Big Beautiful Bill Act and its impact on the 2026 tax code

Passed in July 2025, the One Big Beautiful Bill Act (OBBBA) made sweeping updates to the U.S. tax code. The primary impact was the permanent extension of many TCJA provisions, including lower tax rates and higher standard deduction amounts. The OBBBA included other changes as well, such as new deductions for tips, overtime, car loan interest and charitable contributions. It also provided an increased deduction for state and local taxes (SALT).² Eligible Americans will be able to claim these starting in 2026.

The SECURE 2.0 Act and its impact on 2026 taxes

The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act is also worth noting. This federal law, enacted in 2022, included more than 90 provisions aimed at expanding retirement plan coverage. Two of those changes will affect 2026 taxes: the addition of increased catch-up contribution limits for individuals ages 60–63 and requirements that catch-up contributions for designated high earners be made on an after-tax Roth basis.³

How much will the standard tax deduction and tax brackets change in 2026?

The TCJA nearly doubled the standard deduction and lowered tax rates across the seven-bracket structure.⁴ Thanks to the OBBBA, both of these provisions will continue into 2026, albeit with the following adjustments for inflation.

Standard tax deduction amounts by filing status

The standard deduction amounts for 2026 are as follows:

• Single: $16,100, up from $15,750 in 2025.
• Married filing separately: $16,100, up from $15,750 in 2025.
• Married filing jointly: $32,200, up from $31,500 in 2025.
• Surviving spouses: $32,200, up from $31,500 in 2025.
• Heads of household: $24,150, up from $23,625 in 2025.⁵

Furthermore, taxpayers age 65 and over may qualify for an additional deduction of up to $6,000 in 2026; however, these individuals must meet specific income and filing status requirements.⁶

Tax brackets by income group

While the 2026 tax rates aren’t changing from tax year 2025, the income thresholds for each tax bracket will be adjusted as follows.⁷

What’s new for retirement contributions, tax deductions and tax credits in 2026?

Beyond adjustments to tax brackets and standard deductions, here are some other key changes you should know about for tax year 2026.

401(k) catch-up contribution rules have changed

As mentioned, the SECURE 2.0 Act made several changes to 401(k) catch-up contributions that will impact certain taxpayer segments in the coming year. First, the IRS now allows 401(k) plan holders ages 60 to 63 to make “super” catch-up contributions. In 2026, the regular catch-up contribution limit is $8,000, while the higher catch-up limit available to individuals 60–63 is $11,250.⁸ Contributing more to your 401(k) on a pre-tax basis can help reduce your taxable income for the year, so plan participants who are eligible for the super catch-up limit could stand to benefit not only from boosted contributions but also from a lower tax bill. Plan providers are not required to offer the higher limit, however, so availability of the super catch-up limit will vary by plan.

Additionally, 401(k) plan participants with annual incomes over a newly set threshold will be able to make catch-up contributions on a Roth basis only. Because these high earners will no longer qualify for pre-tax catch-up contributions, which help lower one’s taxable income for the year, their taxable income could effectively increase. The benefit for high earners contributing their catch-up to their 401(k) only on a Roth basis, then, is that qualified withdrawals of their Roth assets in retirement will be tax-free. The current income limit for pre-tax catch-up contributions is set at $145,000 of prior year FICA (Federal Insurance Contributions Act) wages from the employer sponsoring the retirement plan.⁹

New tax deductions for 2026

The OBBBA also brought about several new deductions that will apply in 2026, including the following:

• Tip deduction: Taxpayers who work in occupations that customarily receive tips can deduct up to $25,000 in qualified tips per year. Deduction phaseouts apply once single filers earn $150,000 and joint filers earn $300,000.
• Overtime deduction: Taxpayers who receive qualified overtime compensation can deduct up to $12,500 in overtime pay ($25,000 for joint filers). Deduction phaseouts apply once single filers earn $150,000 and joint filers earn $300,000.
• Car loan interest deduction: Taxpayers can deduct up to $10,000 of interest paid on a loan for a qualifying vehicle. Deduction phaseouts apply once single filers earn $100,000 and joint filers earn $200,000.¹⁰
• Charity deduction: Taxpayers who take the standard deduction can now take an above-the-line deduction for charitable contributions of up to $1,000 for single filers and $2,000 for joint filers.¹¹
• SALT deduction cap: The SALT deduction cap in 2026 is $40,400 ($20,200 for filers who are married and filing separately). Deduction phaseouts begin once single filers earn $505,000 and married individuals filing separately earn $252,500.¹²

Other credits, caps and exclusions for 2026

Lastly, tax year 2026 will see changes to various other credits, including the following:

• Earned Income Tax Credit (EITC): The maximum EITC in 2026 is $8,231, up from $8,046 in 2025.
• Lifetime gift and estate tax credits: The exemption amount increases to $15 million in 2026, up from $13.99 million in 2025.
• Adoption credits: The maximum credit for adoption expenses is increasing to $17,670 from $17,280 in 2025; $5,120 is refundable.
• Alternative Minimum Tax exemption amounts: The exemption amount is $90,100 for unmarried filers and $140,200 for married couples filing jointly.
• Foreign earned income exclusion: The maximum exclusion amount on foreign earned income is increasing to $132,900 in 2026, up from $130,000 in 2025.
• Gift exclusions to noncitizen spouses: Individuals can gift up to $194,000 to a spouse who is not a U.S. citizen in 2026, up from $190,000 in 2025.¹³
• Qualified charitable distributions (QCDs): For those with traditional (taxable) IRAs (individual retirement accounts), QCDs up to a certain amount can effectively replace required minimum distributions (RMDs). This type of giving strategy may be an option for account holders who don’t rely on RMDs to fund their lifestyle in retirement. For 2026, the total QCD amount that can be excluded from income is $111,000, up from $108,000 in 2025.¹⁴

Will the 2026 tax code changes affect your income taxes?

The changes outlined above will likely affect your federal income taxes in one way or another. Nearly 90% of tax filers claim the standard deduction, so the higher deduction amounts will have widespread impacts.¹⁵ Additionally, the tax bracket income threshold increases have the potential to impact the tax rates of many filers.

That said, the overall impact of the 2026 tax changes will depend on the deductions, credits, limits and exclusions that apply to you. For example, if you’re 60 years old and plan on making 401(k) catch-up contributions, you may be able to make more pre-tax contributions in 2026, which lowers your taxable income. Further, if you’re working a job where you earn both tips and overtime, you may now qualify for up to $37,500 in additional deductions.

To understand the true impact, though, you’ll need to review each of the changes to determine if and to what degree it applies to your unique financial situation.

How to get more information or help when it comes to your taxes

The U.S. tax code is complicated and ever-changing. If you’d like to learn more, the following resources can help:

• IRS.gov: The official website of the IRS is full of reliable information. You can find notices of changes, guidance, official forms, calculators, tools and more. The Interactive Tax Assistant is a good place to start.
• IRS phone support: For general tax questions, you can also call the IRS directly at 1-800-829-1040.
• Volunteer Income Tax Assistance (VITA): VITA, an IRS-sponsored initiative, offers free basic tax preparation for those who make $67,000 or less, have a disability or speak limited English.
• Tax Counseling for the Elderly (TCE): TCE, an IRS initiative providing free tax help for taxpayers 60 and older, specializes in questions on pensions and retirement.
• MilTax: Offered through the Department of Defense, MilTax is a free tax resource for members of the armed forces.
• Taxpayer Advocate Service (TAS): TAS, an independent organization within the IRS, helps resolve tax issues that can’t be resolved through regular IRS channels.

For personalized guidance, you should also consider speaking with a qualified tax professional, who can ensure you understand the 2026 changes and are well-prepared for the new tax year.

The bottom line

For 2026, the tax rates and standard deduction amounts will be in line with where they’ve been for the past eight years, while many new deductions and higher credits will be available. Employees nearing retirement may also be able to contribute a bit more to their 401(k) plans, although high earners will be restricted to Roth catch-up contributions. Whatever your situation, now is a good time to review the upcoming changes carefully so you can ensure they’re accounted for in your 2026 financial plan.