WASHINGTON D.C. — As 2026 approaches, American taxpayers are set to encounter a wave of significant financial shifts. From adjusted tax brackets that may boost take-home pay to a new generation of savings accounts for children, the landscape of personal finance is being reshaped by the “One Big Beautiful Bill” (OBBB) Act and annual inflation adjustments.
Paycheck Boost: Inflation-Adjusted Brackets
The most immediate change for many will be a slight increase in take-home pay starting in January. This isn’t necessarily a traditional raise, but a result of the IRS adjusting federal income tax brackets and the standard deduction by approximately 2.2% to 2.7% to prevent “bracket creep.”
- Standard Deduction: For single filers, the deduction rises to $16,100. For married couples filing jointly, it increases to $32,200.
- The Goal: These adjustments ensure that as wages rise to meet inflation, taxpayers aren’t pushed into higher tax brackets that would effectively decrease their buying power.
| 2026 Tax Rate | Single Filers | Married Filing Jointly |
| 10% | Up to $12,400 | Up to $24,800 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 |
“Trump Accounts” for Kids
A cornerstone of the 2025 OBBBA legislation, Trump Accounts (Section 530A) officially become available for establishment on July 4, 2026.
- Initial Seed: The federal government will provide a one-time $1,000 contribution for eligible children born between 2025 and 2028.
- Growth Potential: Parents and employers can contribute up to $5,000 annually. Employer contributions of up to $2,500 are excluded from the employee’s taxable income.
- Long-term Goal: These accounts act as IRAs for minors, intended to provide a significant financial foundation by the time the child reaches age 18.
Retirement Age and Social Security
The Full Retirement Age (FRA) is continuing its gradual climb. For those turning 62 in 2026, the NRA will begin increasing by one month every two years (or more aggressively under certain solvency provisions) until it reaches 69. This is part of a long-term effort to ensure the solvency of the Social Security system as life expectancy increases.
Potential “Tariff Dividends”
One of the most debated changes is the proposed $2,000 Tariff Dividend. While President Trump has promised “the largest tax refund season ever” using revenue from reciprocal tariffs, this remains a developing story.
- The Proposal: Direct checks to low- and middle-income Americans funded by import duties.
- The Hurdle: Fiscal experts and members of Congress remain divided on whether tariff revenue—currently estimated at roughly $300 billion annually—can cover the $600 billion price tag for universal checks.
Important Tax Credits to Watch
The IRS has also raised limits for several key credits for 2026:
Seniors’ Deduction: Taxpayers age 65+ can claim an additional $6,000 deduction (phased out for high earners).
Adoption Credit: Increases to a maximum of $17,670.
Earned Income Tax Credit (EITC): The maximum for taxpayers with three or more children rises to $8,231.
