The IRS has released the federal tax numbers for the 2026 tax year — the return you'll file in early 2027 — and there's good news for most families: higher standard deductions, higher tax brackets, and several brand-new deductions created by the One Big Beautiful Bill (the IRS calls them the "Working Families Tax Cuts").

The standard deduction goes up again

- Married filing jointly: $32,200 (up from $31,500)

- Single: $16,100 (up from $15,750)

- Head of household: $24,150 (up from $23,625)

Tax brackets also shifted up about 2.5% for inflation, while the rates themselves (10%–37%) stay the same.

New deductions you can take even if you don't itemize

These are new for 2025–2026 and run through 2028. Income limits apply, but many of our clients will qualify:

- Tips: deduct up to $25,000 of qualified tip income

- Overtime: deduct up to $12,500 ($25,000 joint) of the premium portion of overtime pay

- Seniors 65+: an extra $6,000 deduction per person

- Car loan interest: up to $10,000 on a new, U.S.-assembled vehicle

- Charitable cash gifts: non-itemizers can now deduct $1,000 ($2,000 joint) — this one is permanent

Other 2026 numbers worth knowing

- Child Tax Credit: up to $2,200 per child (up to $1,700 refundable)

- Adoption credit: up to $17,670, with up to $5,120 refundable

- Educator expense deduction: $350

- Estate tax exclusion: $15 million

What this means for you: if you earn tips or overtime, are 65 or older, bought a new car, or give to charity, your 2026 return has new money on the table — but only if your records are in order. Keep pay stubs, tip logs, and donation receipts.

Questions about how the new rules apply to your family or business? Call us at 860-440-2669 — we prepare taxes in English and Spanish, and the first conversation is about understanding your situation, not selling you anything.

General information only — not tax advice for your specific situation.