OBBB 2026 vs 2025 Tax Comparison Calculator
Compare your federal income tax under the One Big Beautiful Bill Act (OBBB) 2026 rates versus 2025 tax law. See the exact dollar difference in tax owed, effective rates, and bracket-by-bracket breakdown. Based on IRS data and P.L. 119-21.
Bracket-by-Bracket Comparison
| Rate | 2025 Range | 2025 Tax | 2026 Range | 2026 Tax |
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What Changed Under OBBB for 2026?
The One Big Beautiful Bill Act (OBBB) 2026 vs 2025 tax comparison calculator shows the real dollar impact of P.L. 119-21, signed into law on July 4, 2025. This landmark legislation made permanent the individual income tax provisions originally enacted under the Tax Cuts and Jobs Act (TCJA) of 2017, which were set to expire after December 31, 2025. Without OBBB, the 2026 tax year would have reverted to pre-2017 rates with higher brackets and smaller standard deductions. Source: IRS.gov.
The key changes under OBBB include inflation-adjusted bracket thresholds for 2026, a slightly higher standard deduction ($15,350 single / $30,700 MFJ versus $15,000 / $30,000 in 2025), a permanent $10,000 SALT deduction cap, and the $2,000 per-child Child Tax Credit locked in permanently. The estate tax exemption was raised to approximately $15 million, removing a major concern for high-net-worth families who feared it would be halved.
OBBB 2026 Tax Brackets vs 2025
Both 2025 and 2026 use the same seven marginal tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The difference lies in where the bracket thresholds fall. For single filers, the 2026 10% bracket extends to $12,150 (up from $11,925 in 2025), meaning more income is taxed at the lowest rate. Similarly, the 22% bracket starts at $49,476 in 2026 versus $48,476 in 2025. These adjustments follow the chained CPI inflation indexing method mandated by P.L. 119-21.
For married filing jointly, thresholds are generally double the single amounts through the 32% bracket. The 35% bracket runs from $255,751 to $639,750 for single filers in 2026 (versus $250,526 to $626,350 in 2025), and the 37% rate applies above those amounts. These wider brackets reduce your effective tax rate compared to what would have applied under pre-TCJA law.
Key OBBB Provisions Made Permanent
Beyond bracket adjustments, OBBB permanently locked in several taxpayer-friendly provisions. The standard deduction roughly doubled compared to pre-2017 levels remains in place, benefiting the approximately 90% of filers who do not itemize. The Child Tax Credit stays at $2,000 per qualifying child under age 17, with up to $1,700 refundable. The SALT deduction cap at $10,000 ($5,000 for married filing separately) is now permanent, which continues to affect taxpayers in high-tax states like California, New York, and New Jersey. The qualified business income (QBI) deduction under Section 199A for pass-through entities also continues indefinitely.
Filing Season 2027 — When to File 2026 Returns
Tax returns for the 2026 tax year will be filed during the 2027 filing season. The IRS typically opens e-filing in late January 2027, with the standard filing deadline of April 15, 2027. If you expect to owe additional tax under either year's rules, consider adjusting your W-4 withholding or making estimated quarterly payments. Use this calculator to project your 2026 liability early so you can plan accordingly. For the latest filing dates and form updates, visit IRS.gov/filing. Last updated: April 2026.
Frequently Asked Questions
What is the One Big Beautiful Bill Act (OBBB)?
The One Big Beautiful Bill Act (P.L. 119-21) was signed into law on July 4, 2025. It made permanent the individual income tax provisions from the Tax Cuts and Jobs Act of 2017 that were set to expire after 2025, including the seven-bracket rate structure (10% to 37%), the nearly doubled standard deduction, and the $2,000 Child Tax Credit.
How do 2026 tax brackets differ from 2025?
The 2026 brackets use the same seven rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) but with inflation-adjusted thresholds. For single filers, the 10% bracket extends to $12,150 (up from $11,925 in 2025), and all other brackets shift slightly higher, meaning more income is taxed at lower rates.
Did the standard deduction change for 2026?
Yes. Under OBBB, the 2026 standard deduction is $15,350 for single filers and $30,700 for married filing jointly, up from $15,000 and $30,000 respectively in 2025. These increases reflect chained CPI inflation adjustments mandated by P.L. 119-21.
Is the SALT deduction cap still $10,000?
Yes. The OBBB made the $10,000 SALT (state and local tax) deduction cap permanent. For married filing separately, the cap is $5,000. This continues to impact taxpayers in high-tax states such as California, New York, New Jersey, and Connecticut.
What happened to the Child Tax Credit under OBBB?
The Child Tax Credit remains at $2,000 per qualifying child under age 17, made permanent by OBBB. Up to $1,700 of the credit is refundable for eligible taxpayers. The credit phases out for single filers with AGI above $200,000 and married filing jointly above $400,000.
Would my taxes have been higher without OBBB?
Most likely, yes. Without OBBB, the 2026 tax year would have reverted to pre-2017 rates: the lowest bracket would have been 15% instead of 12%, the standard deduction would have been roughly halved, and personal exemptions would have returned. For a single filer earning $75,000, the difference could exceed $2,000 per year. Source: Congressional Budget Office.
When can I file my 2026 tax return?
The IRS typically opens e-filing for the prior tax year in late January. For 2026 returns, expect the filing season to begin in late January 2027, with a standard deadline of April 15, 2027. Extensions push the deadline to October 15, 2027.