Tax changes for 2026 include a larger standard deduction, a new Trump Accounts savings program for children, increased child tax credits, and higher earned income credits, reflecting permanent extensions of the One Big Beautiful Bill signed into law in July 2025.
The Internal Revenue Service announced that for tax year 2026, the standard deduction rises to $32,200 for married couples filing jointly, $16,100 for single filers, and $24,150 for heads of household, according to the IRS. These increases represent an adjustment of approximately 2.2% from 2025 levels and are part of permanent tax changes enacted under the One Big Beautiful Bill.
Trump Accounts, a historic new savings tool created under the One Big Beautiful Bill, allow parents and guardians to establish retirement accounts for children who have not yet turned 18. The program features a federal seed deposit of $1,000 for children born between January 1, 2025, and December 31, 2028, and parents can contribute up to $5,000 annually, according to the IRS. These accounts offer tax-deferred growth potential and are designed to give children a financial head start.
The Child Tax Credit increased to $2,200 per qualifying child for 2026, up from $2,000 previously, according to the Institute on Taxation and Economic Policy. The maximum refundable portion of this credit is $1,700. Congress and President Trump made the $2,200 amount permanent and indexed it to inflation for subsequent years under the One Big Beautiful Bill.
Families with lower incomes also benefit from expanded credits. The Earned Income Tax Credit reaches $8,231 for qualifying taxpayers with three or more children in 2026, up from $8,046 in 2025, according to the IRS. For families with one child, the maximum credit is $4,427. The EITC is a refundable credit designed to support working families with low to moderate incomes.
The One Big Beautiful Bill extended key provisions of the 2017 Tax Cuts and Jobs Act that were set to expire at the end of 2025, making them permanent. Beyond the standard deduction and credits, the law increased the state and local tax (SALT) deduction cap to $40,400 for 2026, made the expanded employer-provided childcare tax credit permanent at up to $500,000 (or $600,000 for eligible small businesses), and indexed several tax benefits to inflation going forward.
Tax professionals recommend that individuals and families review these changes when planning their 2026 tax filings. Those with children may benefit from opening Trump Accounts, while families qualifying for the Earned Income Tax Credit should ensure they claim the credit when filing returns in 2027.
Sources
- Internal Revenue Service — 2026 standard deduction amounts, Trump Accounts program details, Child Tax Credit amounts, and Earned Income Tax Credit maximums
- Institute on Taxation and Economic Policy — Child Tax Credit increase to $2,200 and indexing to inflation
- Bipartisan Policy Center — Overview of One Big Beautiful Bill Act tax changes and Trump Accounts
