💵 Lower Taxes in 2026: Deductions, Rates & Credits

Beginning in 2026, updated tax rules will take effect in the United States.

The primary goal is to adjust for inflation and extend key provisions introduced by the TCJA.

The good news is that most of these changes will reduce the tax burden for families and business owners.

📌 Here are the three most notable changes:

1️⃣ New Tax Bracket Thresholds

Starting in 2026, the income levels for higher tax brackets will rise by approximately 2.5–3%.

👉 This means that with the same income, you could end up in a lower tax bracket.

2️⃣ Higher Standard Deduction

Taxable income can now be automatically reduced by:

• $32,200 — for Married Filing Jointly (MFJ)

• $16,100 — for Single filers

• $24,150 — for Heads of Household (HoH)

👉 Even without itemizing other deductions, your taxable income will be lower.

3️⃣ Child Tax Credit increases to $2,200

The current child tax credit is $2,000.

Starting in 2026, it will rise to $2,200 and will continue to increase automatically as it becomes indexed to inflation.

👉 This provides welcome relief for families with children — especially those with multiple children.

💡 In the next post — three more updates that are important for business owners and those planning wealth transfer through inheritance and gifts.

#USTaxCIS