OBBB vs TCJA 2026 Tax Bracket Comparison
The One Big Beautiful Bill (P.L. 119-21, signed July 4, 2025) made TCJA brackets permanent for 2026 and beyond. Compare your 2026 tax under OBBB permanent rates vs what you would have paid under the expired pre-TCJA brackets.
What OBBB Changed — Making TCJA Permanent for 2026
The Tax Cuts and Jobs Act of 2017 (TCJA) dramatically restructured the individual income tax: it lowered the top rate from 39.6% to 37%, consolidated brackets, nearly doubled the standard deduction, and doubled the child tax credit. However, the individual provisions were temporary — set to expire ("sunset") on December 31, 2025. Without Congressional action, 2026 rates would have reverted to pre-2018 law.
The One Big Beautiful Bill (OBBB, P.L. 119-21, signed July 4, 2025) permanently extended these TCJA provisions. The 10/12/22/24/32/35/37% bracket structure is now permanent law, indexed for inflation going forward. The 2026 standard deduction is $15,000 (single) / $30,000 (MFJ). The pre-TCJA brackets of 10/15/25/28/33/35/39.6% are permanently retired. Source: irs.gov, congress.gov/119/plaws. Last updated: May 2026.
2026 Tax Brackets Under OBBB vs Pre-TCJA Comparison (Single Filer)
| Income Range (Single) | OBBB 2026 Rate | Pre-TCJA Hypothetical Rate | Rate Difference |
|---|---|---|---|
| $0 – $11,925 | 10% | 10% | Same |
| $11,925 – $48,475 | 12% | 15% | −3% |
| $48,475 – $103,350 | 22% | 25% | −3% |
| $103,350 – $197,300 | 24% | 28% | −4% |
| $197,300 – $250,525 | 32% | 33% | −1% |
| $250,525 – $626,350 | 35% | 35% | Same |
| Above $626,350 | 37% | 39.6% | −2.6% |
Pre-TCJA hypothetical brackets are inflation-adjusted to 2026 income levels using CBO projections. Most taxpayers see the biggest benefit in the 12% vs 15% and 22% vs 25% bracket differences — these affect middle-income households most directly. Source: IRS Revenue Procedure 2025-40, Tax Foundation analysis.
Key OBBB Provisions Beyond Tax Brackets
Beyond the brackets themselves, OBBB permanently extended several other TCJA features: (1) Standard deduction — $15,000 single / $30,000 MFJ in 2026 (vs hypothetical $7,800/$15,600 under pre-TCJA); (2) Child Tax Credit — $2,000 per child permanently (vs $1,000 pre-TCJA); (3) Section 199A QBI deduction — 20% pass-through deduction permanently extended; (4) Estate tax exemption — raised to $15 million per person (vs scheduled halving to ~$7M); (5) Alternative Minimum Tax (AMT) exemption — higher exemption thresholds retained. The combined effect for most middle-income households is a tax reduction of $2,000–$8,000 per year compared to what pre-TCJA reversion would have produced. Source: irs.gov/newsroom.