Tax Law Changes for 2026
As you prepare to file your 2025 tax return in 2026, it's crucial to understand the key changes to tax laws, brackets, and deductions. This comprehensive guide covers everything you need to know about the 2026 filing season.
Inflation-Adjusted Tax Brackets
The IRS adjusts tax brackets annually for inflation. Here are the 2025 tax brackets (for filing in 2026):
Single Filers
| Tax Rate | Income Range |
|---|---|
| 10% | $0 to $11,600 |
| 12% | $11,600 to $47,150 |
| 22% | $47,150 to $100,525 |
| 24% | $100,525 to $191,950 |
| 32% | $191,950 to $243,725 |
| 35% | $243,725 to $609,350 |
| 37% | $609,350+ |
Married Filing Jointly
| Tax Rate | Income Range |
|---|---|
| 10% | $0 to $23,200 |
| 12% | $23,200 to $94,300 |
| 22% | $94,300 to $201,050 |
| 24% | $201,050 to $383,900 |
| 32% | $383,900 to $487,450 |
| 35% | $487,450 to $731,200 |
| 37% | $731,200+ |
Advertisement
Updated Standard Deductions
Standard deductions have increased for 2025:
- Single: $15,750 (up from $14,600 in 2024)
- Married Filing Jointly: $31,500 (up from $29,200 in 2024)
- Head of Household: $23,650 (up from $21,900 in 2024)
Child Tax Credit Remains Strong
The Child Tax Credit remains at $2,000 per qualifying child under age 17, with up to $1,700 refundable.
This credit provides significant relief for families and can substantially increase your refund.
Retirement Contribution Limits
Contribution limits for retirement accounts have increased:
- 401(k), 403(b), 457 plans: $23,000 ($30,500 if age 50+)
- IRA (Traditional & Roth): $7,000 ($8,000 if age 50+)
- HSA (Single): $4,300
- HSA (Family): $8,550
SALT Deduction Cap Remains
The State and Local Tax (SALT) deduction cap remains at $10,000 for 2025. This limit affects taxpayers in high-tax states who itemize deductions.
Earned Income Tax Credit (EITC)
The EITC has been adjusted for inflation. Maximum credits for 2025:
- No children: Up to $600
- One child: Up to $3,995
- Two children: Up to $6,604
- Three+ children: Up to $7,430
Electric Vehicle Credit Updates
The clean vehicle credit continues with some modifications:
- New EVs may qualify for up to $7,500
- Used EVs may qualify for up to $4,000
- Stricter domestic assembly and battery component requirements apply
- Income limits: $300,000 (married), $225,000 (head of household), $150,000 (single)
Key Dates for 2026 Filing Season
- January 27, 2026: IRS begins accepting 2025 tax returns
- April 15, 2026: Tax filing deadline (extended to April 17 if weekend)
- October 15, 2026: Extended filing deadline (if extension filed)
What This Means for You
With inflation adjustments across the board, many taxpayers will see slightly lower tax bills or higher refunds compared to previous years, even with the same income levels.
The increased standard deduction is particularly beneficial, meaning fewer taxpayers will need to itemize, simplifying the filing process.
Use our free tax calculator with all the latest 2025 tax brackets and deductions.
Start Calculator