Published October 12, 2026
On December 31, 2025, nothing happened. That's the story of the 2026 tax brackets. For eight years, every tax-planning conversation had the same shadow hanging over it: the 2017 Tax Cuts and Jobs Act was set to expire, and 2026 was supposed to be the year rates snapped back. Then the One Big Beautiful Bill Act, signed July 4, 2025, made the TCJA rate structure permanent. The cliff everyone planned around never arrived.
So what did the One Big Beautiful Bill do to tax brackets for 2026? Almost nothing you'd notice, and that's the point. The seven rates, 10% through 37%, are exactly the rates you paid in 2025. Only the income thresholds moved, up roughly 2 to 3% for inflation. For single filers in 2026: 10% on the first $12,400, 12% to $50,400, 22% to $105,700, 24% to $201,775, 32% to $256,225, 35% to $640,600, and 37% above that. The standard deduction kept its TCJA-era size and grew with inflation: $16,100 for single filers, up from $15,000, and $32,200 for married couples filing jointly, up from $30,000.
The counterfactual is worth a sentence, because it shows what was avoided. Without the new law, the top rate would have jumped from 37% back to 39.6%, the standard deduction would have been cut roughly in half, and the child tax credit would have dropped from $2,000 to $1,000 per child. Instead the credit went the other direction, to $2,200 per child, with the $1,400 refundable portion now permanent.
The real 2026 planning action sits in the new temporary provisions, not the brackets. The $6,000 senior deduction applies for 2025 through 2028 and phases out starting at $75,000 of MAGI for singles and $150,000 for joint filers. The SALT cap jumped to $40,000 for 2025 through 2029, with a small annual increase, before reverting to $10,000 in 2030 unless Congress acts again. And starting in 2026, people who take the standard deduction can claim a charitable deduction for the first time in years: up to $1,000 for single filers and $2,000 for joint filers. The estate and gift tax exemption lands at an inflation-adjusted $15 million per person in 2026.
My read: the boring brackets are a feature. For the first time in nearly a decade, the rate structure isn't the thing to plan around. The planning energy for 2026 belongs to the provisions with expiration dates, because temporary tax law is the only kind that bites.
Frequently asked questions
Did the One Big Beautiful Bill change tax rates for 2026?
No. The seven TCJA rates, 10% through 37%, were made permanent, so 2026 uses the same rates as 2025. Only the income thresholds moved, up about 2 to 3% for inflation.
What is the 2026 standard deduction?
$16,100 for single filers, up from $15,000 in 2025, and $32,200 for married couples filing jointly, up from $30,000. The TCJA-era higher amounts are now permanent and indexed for inflation.
What happened to the SALT deduction cap?
It rose to $40,000 for 2025 through 2029, with a 1% annual increase, and an income phase-out starting at $500,000. It reverts to $10,000 in 2030 unless Congress acts.
Is the $6,000 senior deduction permanent?
No. It's temporary for tax years 2025 through 2028. Taxpayers 65 and older can claim it on top of the standard deduction, subject to phase-outs starting at $75,000 MAGI single and $150,000 joint.
What would 2026 brackets have looked like without the new law?
Under the old scheduled law, the top rate would have risen from 37% to 39.6%, the standard deduction would have been cut roughly in half, and the child tax credit would have dropped from $2,000 to $1,000 per child.
This guide is general information, not tax advice. Tax law changes and individual situations vary, so check the current IRS guidance or a tax professional before you file.
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