What's new for 2026

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Higher Standard Deduction

• $16,100 for      Single
• $32,200 for      Married Filing Jointly
• $24,150 for      Head of Household

SALT Deduction Increase

The state and local tax deduction cap rises to $40,400. 

These amounts reflect the 2026 inflation adjustments. 

Tax brackets have shifted upward due to inflation adjustments. The top tax rate remains 37%, with higher income thresholds across all filing statuses.

Single Filers

• 10%: $0 – $12,400
• 12%: $12,400 _ $50,400
• 22%: $50,400 – $105,700
• 24%: $105,700 – $201,775

Married Filing Jointly

• 10%: $0 – $24,800
• 12%: $24,800 – $100,800
• 22%: $100,800 – $211,400
• 24%: $211,400 –$403,550

Head of Household

• 10%: $0 –$17,700
• 12%: $17,700 –$67,450
• 22%: $67,450 –$105,700
• 24%: $105,700 – $201,775

All bracket thresholds were increased for inflation. 

One of the biggest legislative changes is that many provisions originally scheduled to expire after 2025 are now permanent, including:

• Current individual tax rates 
• Larger standard deduction 
• Increased AMT exemption 
• Qualified Business Income (QBI) deduction (with legislative modifications) 
• Higher estate and gift tax exemption 

This significantly changes long-term tax planning. 

Eligible taxpayers age 65 or older may qualify for a new additional deduction (subject to statutory rules and income limitations). This is separate from the regular age-based standard deduction increase that already existed. 

• ✔ Qualified Tip Income 
• ✔ Qualified Overtime Compensation 
• ✔ Qualified Auto Loan Interest 
• ✔ Additional Deduction for Eligible Seniors 

 Documentation and eligibility requirements apply. 

These have detailed eligibility rules and documentation requirements, making them an important area for client interviews. 

• Annual Gift Tax Exclusion: $20,000 per recipient 
• Lifetime Estate & Gift Exemption: $15,000,000 per individual (indexed) 

Enhanced Affordable Care Act Premium Tax Credit rules expired after 2025.

For many marketplace insurance clients:

• Lower credits 
• Higher monthly premiums 
• More taxpayers required to reconcile Form 8962 
• Greater risk of excess advance credit repayment 

This is likely to be an area requiring additional client education. 

 Retirement Contribution Opportunities for 2026
Retirement contributions are one of the most effective ways to reduce taxable income and build long‑term financial security. Several limits have increased for 2026.

IRA Contributions

• Traditional  & Roth IRA limit: $7,500 (you can contribute up to April 15,2027)
• Age 50+ catch‑up: Additional      $1,100 (total $8,600)

401(k), 403(b), and 457 Plans

• Base  contribution limit: $24,500
• Age 50+ catch‑up: $8,000
• Special age  60–63 catch‑up: $11,250

SIMPLE IRA Plans

• Base  contribution limit: $17,000
• Age 50+ catch‑up: $4,000
• Special age  60–63 catch‑up: $5,250

Coverage 2026 Self-Only $4,400

Family $8,750 Catch-Up (55+) $1,000