The Trump tax code as it stands for 2026 is the 2017 Tax Cuts and Jobs Act, kept alive and modified by the One Big Beautiful Bill Act signed on July 4, 2025. That second law made nearly every individual provision of the 2017 overhaul permanent, bumped the child tax credit, temporarily raised the state and local tax deduction cap, and locked in 100 percent bonus depreciation for businesses. The scheduled end-of-2025 sunset is off the table for almost everything.
Income Tax Brackets for 2026
The seven-bracket structure introduced in 2018 is now permanent, with a top rate of 37 percent. The IRS has released the following inflation-adjusted brackets for single filers in 2026:1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
- 10%: up to $12,400
- 12%: $12,401 to $50,400
- 22%: $50,401 to $105,700
- 24%: $105,701 to $201,775
- 32%: $201,776 to $256,225
- 35%: $256,226 to $640,600
- 37%: $640,601 and above
Married couples filing jointly hit the same rates at roughly double those thresholds, with the 37 percent bracket starting at $768,701. Head-of-household filers cross into the top bracket at $640,601, though the lower brackets are wider than for single filers.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
Standard Deduction and the End of the Personal Exemption
The standard deduction is now the default for most households, and the 2018 near-doubling has been made permanent with continued inflation indexing. For 2026:1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
- Single filers: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
The tradeoff is that the personal exemption is permanently gone. You cannot deduct a per-person amount for yourself, your spouse, or your dependents. Larger families lean on the child tax credit and other targeted provisions to close the gap.
Child Tax Credit and Credit for Other Dependents
The child tax credit is $2,200 per qualifying child under 17 for 2025 and is indexed for inflation going forward. Up to $1,700 of the 2026 credit is refundable, so families who owe little or no federal income tax can still receive that amount back. To claim the refundable portion, you need earned income above $2,500, and the refund phases in gradually based on earnings.
The credit begins to phase out at $200,000 in modified adjusted gross income for single filers and $400,000 for joint filers, so most middle-income households qualify in full.2Internal Revenue Service. Parents: Check Eligibility for the Credit for Other Dependents
A separate $500 nonrefundable credit for other dependents covers children 17 and older, elderly parents you support, and other qualifying relatives. The same income thresholds apply.2Internal Revenue Service. Parents: Check Eligibility for the Credit for Other Dependents
What Itemizers Can and Can’t Deduct
If your itemized deductions beat the standard deduction, several rules from the 2017 law still shape what counts.
State and Local Taxes
The SALT deduction, which combines property taxes with either state income or sales taxes, was capped at $10,000 starting in 2018. For 2025 through 2029, the cap is raised to $40,000 for taxpayers with modified adjusted gross income below $500,000. Above that income level, the higher cap gradually shrinks back toward $10,000. Both the cap and the income threshold increase 1 percent per year during that window. This is temporary. Absent further congressional action, the cap returns to $10,000 after 2029.
Mortgage Interest
For mortgages taken out after December 15, 2017, interest is deductible only on the first $750,000 of acquisition debt. Loans originated on or before that date remain under the older $1,000,000 cap. Both rules are now permanent. Home equity loan interest is deductible only if the borrowed funds were used to buy, build, or substantially improve the home securing the loan. Starting in 2026, private mortgage insurance premiums count as deductible mortgage interest, which helps buyers who put less than 20 percent down.
Charitable Contributions
Starting in 2026, taxpayers who take the standard deduction can also claim an above-the-line deduction of up to $1,000 for cash charitable contributions, or $2,000 for married couples filing jointly. The deduction applies only to cash gifts made directly to qualifying public charities. Donations to donor-advised funds, private foundations, and noncash gifts such as clothing or stock do not qualify, and there is no carryforward of unused amounts.
Miscellaneous Deductions That Are Gone
The 2 percent floor category of miscellaneous itemized deductions is permanently eliminated. Unreimbursed employee expenses, tax preparation fees, and investment advisory fees can no longer be deducted on your federal return.
Business Owners and the Corporate Rate
The corporate income tax remains a flat 21 percent, unchanged since 2018 and never scheduled to sunset.
Qualified Business Income Deduction
Owners of sole proprietorships, partnerships, and S corporations can deduct up to 20 percent of their qualified business income under Section 199A. The deduction is now permanent, and the law adds a $400 minimum deduction for taxpayers with at least $1,000 of active qualified business income.3Office of the Law Revision Counsel. 26 U.S. Code 199A – Qualified Business Income
For 2026, the full 20 percent deduction is available without limitation to single filers with taxable income below roughly $201,750, or about $403,500 for joint filers. Above those thresholds, the deduction is restricted based on the type of business and W-2 wages paid. Service businesses such as law firms, medical practices, and consulting operations face the tightest limits.4Internal Revenue Service. Qualified Business Income Deduction
Income earned through a C corporation or as a W-2 employee does not qualify. Not every state follows the federal QBI deduction, so your state return may look different.
Bonus Depreciation and Section 179
100 percent bonus depreciation is permanently restored for qualifying property acquired after January 19, 2025. Businesses can immediately write off the full cost of eligible equipment and property in the year it is placed in service.5Internal Revenue Service. Treasury, IRS Issue Guidance on the Additional First Year Depreciation Deduction Amended as Part of the One, Big, Beautiful Bill
Section 179 provides a separate immediate-expensing option often used by small and mid-sized businesses. For 2026, eligible businesses can deduct up to $2,560,000 of qualifying equipment purchases, with a dollar-for-dollar phaseout beginning once total qualifying purchases exceed $4,090,000.
Estate and Gift Tax
The federal estate and gift tax exemption is $15,000,000 per individual for 2026, meaning a married couple can shield up to $30,000,000 from federal estate and gift taxes. The exemption is permanent and indexed for inflation.6Internal Revenue Service. Whats New – Estate and Gift Tax
The top federal estate tax rate is 40 percent on amounts above the exemption. Some states impose their own estate or inheritance taxes with much lower exemption thresholds, so an estate can owe state tax even when it falls well below the federal line.
Alternative Minimum Tax Changes for 2026
The AMT still exists, but higher exemptions have kept most filers out of it since 2018. Those exemption amounts are preserved, and for 2026 they are:
- Single filers: $90,100 exemption, phaseout begins at $500,000
- Married filing jointly: $140,200 exemption, phaseout begins at $1,000,000
- Married filing separately: $70,100 exemption, phaseout begins at $500,000
One thing did change. The rate at which the exemption phases out doubled, from 25 percent to 50 percent, starting in 2026. The exemption now disappears twice as fast once income crosses the threshold. A single filer earning $680,000 would see the entire exemption wiped out, whereas under the old 25 percent phaseout they would have kept a partial exemption. Taxpayers in the roughly $500,000 to $700,000 range who have not owed AMT in years should run the numbers again for 2026.
What’s Permanent and What Still Sunsets
The original 2017 law set most individual provisions to expire after December 31, 2025. The 2025 legislation closed nearly all of those exits. The following are now permanent:
- The seven-bracket rate structure with a 37 percent top rate
- The larger standard deduction, indexed for inflation
- The elimination of the personal exemption
- The $2,200 child tax credit, indexed for inflation
- The 20 percent QBI deduction for pass-through business income
- The $15 million estate tax exemption, indexed for inflation
- 100 percent bonus depreciation for qualifying property acquired after January 19, 2025
- The $750,000 mortgage interest cap for loans originated after December 15, 2017
The raised SALT deduction cap of $40,000 is the notable exception. It runs only through 2029, after which the cap reverts to $10,000 unless Congress acts again. If you rely on the larger SALT deduction, keep that expiration date in view when planning multi-year moves like property tax prepayments or a change of residence.