The Tax Cuts and Jobs Act of 2017 brought sweeping changes to the U.S. tax code β€” most of them favorable to individual taxpayers. But many of those provisions sunset on December 31, 2025, which means 2026 will bring significant tax changes for nearly every American household.

Individual tax brackets

Lower brackets revert to pre-TCJA levels. The top rate moves from 37% back to 39.6%, and most middle-income brackets see 2–3 percentage point increases.

Standard deduction

The standard deduction roughly doubles under TCJA. Post-sunset, it returns to pre-2018 levels (approximately half) β€” making itemized deductions more attractive again for many filers.

SALT cap

The $10,000 state and local tax deduction cap expires, restoring the unlimited SALT deduction.

Estate tax exemption

The federal estate tax exemption (currently roughly $13.6M per individual) is set to roughly halve. Families with estates above the new threshold should consider gifting strategies in 2025.

What to do now

Talk to a tax attorney before year-end about Roth conversions, accelerating income, gifting strategies, and revisiting your estate plan.