The end of the year is a natural time to look ahead, and in the world of taxes, 2026 is already on the horizon with some significant changes. New tax legislation has been enacted that permanently alters key provisions, and for individuals and families, understanding these shifts now is crucial for proactive tax planning. At Lightening the Load, we believe in staying ahead of the curve so you can face the future with confidence.
Here’s a breakdown of the biggest tax changes from the new bill and how they could impact you in 2026 and beyond.
Goodbye to Personal Exemptions
A major change that was originally scheduled to return in 2026 was the personal exemption. However, the new law permanently repeals this, continuing the system introduced in the 2017 Tax Cuts and Jobs Act (TCJA). Instead, the standard deduction remains high, which benefits many taxpayers. This is a key detail that can affect your overall taxable income.
A New, Higher Standard Deduction
The new legislation makes the increased standard deduction permanent. For 2026, the standard deduction for singles will increase to $16,550 and for married couples filing jointly to $33,100. This higher deduction means fewer taxpayers will need to itemize to see a tax benefit.
An Additional Senior Deduction
The new bill also creates a temporary additional standard deduction for taxpayers age 65 and older. This “senior bonus” is $6,000 for single taxpayers and $12,000 for married couples where both qualify. This deduction is available even if you itemize, offering a welcome tax break for seniors.
A Higher SALT Cap, for Now
The State and Local Tax (SALT) deduction cap, which has limited deductions to $10,000, has been a major point of discussion for years. The new bill provides temporary relief, raising the SALT deduction cap to $40,000 for taxpayers with incomes under $500,000. This is a significant change, but it is temporary and will phase down for higher-income earners.
Permanent Tax Brackets and Rates
The new law makes the seven individual income tax rates permanent. While the brackets themselves will still be adjusted for inflation, the actual rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37% are here to stay. This provides a level of certainty that was previously missing from the tax code.
New Rules for Businesses
For small business owners, there are also some key changes to be aware of:
- Permanent 20% Qualified Business Income Deduction (QBID): The new law makes the 20% deduction for qualified business income permanent, providing long-term certainty for many business owners.
- Return of 100% Bonus Depreciation: Businesses can once again deduct the entire cost of qualified property in the year it is placed in service, offering a powerful tool for businesses looking to invest in new assets.
The 2026 tax landscape is already changing. Stay ahead of the curve by partnering with Lightening the Load for proactive tax planning.
