Overview
- The parameters apply to 2026 income and will govern returns filed in 2027, with the seven-bracket system retained and the top 37% rate starting above $320,300 for singles and $640,600 for joint filers.
- Standard deductions rise to $16,100 for single filers, $24,150 for heads of household, and $32,200 for married couples filing jointly.
- Family-focused provisions include an Earned Income Tax Credit maximum of $8,231 for eligible taxpayers with three children and a Child Tax Credit of $2,200 per child with at least $1,700 refundable under this year's law.
- Long-term capital gains thresholds increase so the 0% rate applies up to $49,450 for single filers and $98,900 for joint filers, with 15% up to $545,500 single and $613,700 joint, and 20% above those levels.
- Targeted updates include a temporary $6,000 additional deduction for taxpayers aged 65 or older from 2025 through 2028 subject to income limits, a $340 monthly commuter cap, a $3,400 FSA limit, updated HSA ranges, and a foreign earned income exclusion of $132,900.