Key Financial Data
FAQs - 2026 Federal Tax Changes
What are the new 2026 income-tax brackets?
The seven-bracket structure (10 %- 37 %) remains. For single filers, the top 37 % rate now begins at $609,350; for married couples filing jointly, $731,100.
All thresholds increased about 2 %-3 % from 2025, reducing the portion of income taxed at higher rates.
How much did the standard deduction increase?
2026 standard-deduction amounts are $16,100 (single), $32,200 (MFJ), and $24,150 (HOH) - each roughly $400–$800 higher than 2025.
Will the SALT deduction cap change in 2026?
Yes - the cap will change. For tax year 2026, the SALT cap increases from the longstanding $10,000 to $40,400 for most taxpayers (joint filers) under OBBBA. There is a phase-out for higher-income taxpayers (MAGI over about $505,000 in 2026) and the cap is scheduled to revert to $10,000 in 2030 unless further legislative change occurs.
Do the 2026 inflation adjustments affect Social Security or Medicare taxes?
Indirectly. Higher wage bases trigger larger payroll-tax withholding, but the income-tax bracket adjustments do not alter FICA rates.
What planning steps make sense before year-end 2025?
Consider accelerating deductions, finalizing Roth conversions, or completing charitable gifts before new thresholds reset in 2026. Review estimated-tax payments with your CPA.