However, the 2026 tax year is seeing some additional adjustments not just for inflation, but to reflect changes under the One Big Beautiful Bill Act (OBBBA) as well.
Although these changes won't go into effect until the 2026 tax year, it's never too early to start thinking and planning ahead. So, what kinds of changes can taxpayers expect to see?
Perhaps the most notable change we'll see beginning with the 2026 tax year is an adjustment to the standard deduction, which taxpayers can take when they choose not to itemize. For 2026, the standard deduction for married couples filing jointly will jump to $32,200, while the deduction for single taxpayers will also increase, to $16,100. This is an increase of $700 for married couples filing jointly and $350 for single filers, respectively.
In addition to inflation adjustments for the standard deduction, the IRS has also announced that the top marginal tax rate for individual taxpayers will remain stable at 37%, with the lowest rates set at 10% for households making $24,800 or less per year.
Additional changes based on inflation and provisions of OBBBA include:
Aside from the notable updates above, some additional tax provisions may be affected by indexing in 2026. This includes:
As you can see, many tax provisions and benefits are changing for the 2026 tax year. These changes account not only for inflation, but for updates under OBBBA as well.
With so much change, you might be wondering, “Is there anything that will stay the same in the coming tax year?”
Yes. In fact, there are a number of tax provisions that were already indexed for inflation in previous tax years and thus will not be changing for 2026. This includes, perhaps most notably, the personal exemption for taxpayers. For 2026, personal exemptions will remain at 0 as a continued provision of the Tax Cuts and Jobs Act of 2017 that was made permanent under OBBBA.
Likewise, those who choose to itemize their deductions rather than take the standard deduction will not be impacted by any changes. Under OBBBA, the limitation on itemized deductions was permanently eliminated, with an exception for those in the highest tax bracket.
Finally, the Lifetime Learning Credit has not changed for the 2026 tax year. As with previous years, it begins to phase out for single taxpayers making between $80,000 and $90,000 per year.
With so many changes coming in the 2026 tax year, now is a good time to start planning ahead and strategizing so you can maximize your credits and deductions.
Some of these changes may take some time and planning to acclimate to, and it might even be worth scheduling a meeting with your tax advisor to discuss how your tax planning may need to change moving forward.
By taking full advantage of the credits and deductions available to you, you may be able to minimize your taxes owed and keep more of your hard-earned money in your pocket when it comes time to file.