updated tax laws 2025

2026 Tax Law Changes (Quick Overview)

Starting in tax year 2026, several major tax rules shift for individuals, families, and small businesses:

• Higher Standard Deduction
• $16,100 for single filers and $32,200 for married filing jointly.
• Updated Tax Brackets
• Inflation-adjusted brackets; top rate remains 37%.
• Child Tax Credit
• Maximum credit increases to $2,200 per child.
• Earned Income Tax Credit
• Up to $8,231 for families with 3+ qualifying children.
• QBI/199A Deduction Made Permanent
• 20% deduction for pass-through business owners stays in place.
• Estate & Gift Tax
• Lifetime exemption set at $15 million.
• Education Credits & Deductions
• Student loan interest deduction begins income-based phase-outs.
• New Car Loan Interest Deduction
• Up to $10,000 in deductible interest for qualifying auto loans (2025–2028).
• Senior Deduction
• Taxpayers 65+ may claim a new $6,000 deduction, subject to income limits.