12/12/2025
Key tax changes from Big Beautiful Bill Act for 2026
📈 1. Standard Deduction Increased
• The standard deduction is higher in 2026 — $16,100 (single) / $32,200 (married filing jointly) — meaning more income is shielded from tax. 
👨👩👧 2. Child Tax Credit Boost
• The Child Tax Credit increases — roughly to about $2,200 per child and indexed for inflation — helping families keep more money. 
💰 3. Expanded SALT Deduction
• The State and Local Tax (SALT) deduction cap rises to ~$40,400 (and grows slightly each year), letting many taxpayers in high-tax states deduct more on their federal return. 
👵 4. New Additional Deduction for Seniors
• Taxpayers 65+ can claim an extra $6,000 deduction (up to $12,000 for married couples) for 2025–2028, which can significantly reduce taxable income for older Americans. 
💵 5. New Deductions for Tips & Overtime (Temporary)
• From 2025–2028, taxpayers may deduct up to $25,000 of qualified tips and up to $12,500 of qualified overtime pay, even if they don’t itemize — lowering taxable income. 
🎁 6. New Charitable Deduction for Non-Itemizers
• Starting January 1, 2026, those who don’t itemize can deduct cash donations up to $1,000 (single) / $2,000 (married) — giving a tax break for charitable giving. 
🔒 7. Prevents Major Tax Increases
• Instead of reverting to higher pre-2017 tax rates in 2026, the bill keeps current lower rate brackets permanent, meaning most taxpayers avoid higher taxes they would have faced otherwise. 
💼 8. Other Notable Items
• Capital gains rates and major brackets stay unchanged — beneficial for investors. 
• Employer-provided childcare and adoption credits increase, helping families with child-related costs.