For tax year 2026, the standard deduction increases to $16,100 for single filers and $32,200 for married couples filing jointly. Federal income tax brackets are adjusted upward for inflation, and the maximum Child Tax Credit is set at $2,200 per qualifying child. [1, 2, 3, 4]

These specific IRS parameters and new tax updates include the following:

 

Standard Deduction & Tax Brackets

• Standard Deduction: Rises to $16,100 for single taxpayers and $32,200 for married couples filing jointly.

• Income Brackets: Adjusted for inflation. The top 37% marginal rate applies to incomes over $640,600 for singles and $768,700 for married couples filing jointly.

• No Personal Exemptions: Eliminated for tax year 2026. [1, 2, 3, 4]

 

Credits & Deductions

• Child Tax Credit (CTC): The maximum CTC remains at $2,200 per qualifying child, with the refundable portion at $1,700.

• Senior Deduction: Taxpayers 65 and older may be eligible to claim an additional deduction up to $6,000 per person (phases out for Adjusted Gross Income over $75,000 for singles, $150,000 for joint filers).

• Education & Labor: New deductions apply for certain tipped workers and overtime pay.

• SALT Cap: The limit on State and Local Tax (SALT) itemized deductions is adjusted to $40,400. [1, 2, 3, 4, 5]

 

Investment & Estates

• Gift and Estate Tax: The lifetime estate tax exemption is $15,000,000. The annual gift tax exclusion remains at $19,000 for most individuals. [1, 2]

 

Specialized Programs

• Trump Savings Accounts: Parents and guardians can open these retirement accounts for eligible children, with a pilot government-funded initial deposit available for children born between 2025 and 2028.