Every year the IRS and the states change dozens of numbers. This guide puts the 2026 ones in one place, for individuals, businesses and trusts in New York, New Jersey and Connecticut.
Download the 2026 Tax Guide (PDF)
What changed for 2026
The 2025 tax law (the One, Big, Beautiful Bill Act, or OBBBA) made the lower TCJA brackets permanent and added new deductions. These are the items most people ask me about.
- Standard deduction went up to $16,100 single, $32,200 joint.
- The SALT cap is $40,400 for 2026 (it was $10,000 before 2025).
- New deductions for tips, overtime, car loan interest and people 65 and older run from 2025 through 2028.
- Non-itemizers can deduct up to $1,000 of cash gifts to charity ($2,000 joint), starting in 2026.
- Federal estate and gift exemption is $15,000,000 per person.
- The IRS raised the business mileage rate mid-year, from 72.5 to 76 cents on July 1, 2026.
Federal income tax brackets (2026)
These rates apply to taxable income, meaning income after your deductions. Each rate applies only to the part of income inside that band.
| Rate | Single | Married filing jointly | Head of household | Married filing separately |
|---|---|---|---|---|
| 10% | $0 | $0 | $0 | $0 |
| 12% | $12,400 | $24,800 | $17,700 | $12,400 |
| 22% | $50,400 | $100,800 | $67,450 | $50,400 |
| 24% | $105,700 | $211,400 | $105,700 | $105,700 |
| 32% | $201,775 | $403,550 | $201,750 | $201,775 |
| 35% | $256,225 | $512,450 | $256,200 | $256,225 |
| 37% | $640,600 | $768,700 | $640,600 | $384,350 |
Standard deduction
Most households take the standard deduction. You itemize only if your itemized total is higher.
| Filing status | Amount |
|---|---|
| Single or married filing separately | $16,100 |
| Married filing jointly | $32,200 |
| Head of household | $24,150 |
| Extra if 65+ or blind (married, per person) | $1,650 |
| Extra if 65+ or blind (unmarried) | $2,050 |
| Dependent's minimum | $1,350 |
OBBBA deductions and credits
These are newer rules. Each has income limits and paperwork rules, so ask before you count on one.
| Item | Limit | Phase-out starts (MAGI) | Years |
|---|---|---|---|
| SALT itemized deduction | $40,400 ($20,200 MFS) | $505,000 (floor $10,000) | 2025 to 2029 |
| Qualified tips deduction | $25,000 | $150,000 single, $300,000 joint | 2025 to 2028 |
| Qualified overtime deduction | $12,500 single, $25,000 joint | $150,000 single, $300,000 joint | 2025 to 2028 |
| Senior deduction (65+) | $6,000 per person | $75,000 single, $150,000 joint | 2025 to 2028 |
| Car loan interest (new US-assembled car) | $10,000 | $100,000 single, $200,000 joint | 2025 to 2028 |
| Charity, non-itemizers (cash) | $1,000 single, $2,000 joint | None | 2026 on |
| Child Tax Credit (under 17) | $2,200 per child ($1,700 refundable) | $200,000 single, $400,000 joint | Permanent |
| Earned Income Credit, max (3+ kids) | $8,231 | Varies | Annual |
- High earners in the 37% bracket get a smaller benefit from itemized deductions starting in 2026.
- Itemized charity gifts now have a floor of 0.5% of AGI before they count.
Capital gains and investment income
Long-term gains (assets held over a year) and qualified dividends get lower rates. Short-term gains are taxed like wages.
| Rate | Single | Married filing jointly | Head of household | Married filing separately |
|---|---|---|---|---|
| 0% | $49,450 | $98,900 | $66,200 | $49,450 |
| 15% | $545,500 | $613,700 | $579,600 | $306,850 |
| 20% | Above 15% cap | Above 15% cap | Above 15% cap | Above 15% cap |
| Item | 2026 |
|---|---|
| Net investment income tax | 3.8% over $200,000 single, $250,000 joint (not indexed) |
| Trusts and estates: 0% gains up to | $3,300 |
| Trusts and estates: 37% bracket starts | $16,000 |
Retirement and HSA limits
Limits are per person. Your plan's own rules can be stricter.
| Account | Limit | Catch-up |
|---|---|---|
| 401(k), 403(b), most 457(b), TSP | $24,500 | $8,000 at 50+; $11,250 at ages 60 to 63 |
| SIMPLE IRA / SIMPLE 401(k) | $17,000 | Varies by plan |
| Total defined contribution (incl. employer) | $72,000 | |
| Traditional or Roth IRA | $7,500 | $1,100 at 50+ |
| HSA, self-only coverage | $4,400 | $1,000 at 55+ |
| HSA, family coverage | $8,750 | $1,000 at 55+ |
| Health FSA | $3,400 |
| Rule | Single | Married filing jointly |
|---|---|---|
| Roth IRA phase-out | $153,000 to $168,000 | $242,000 to $252,000 |
| Traditional IRA deduction, covered by work plan | $81,000 to $91,000 | $129,000 to $149,000 |
- Starting in 2026, bronze and catastrophic health plans count as HSA-compatible.
Social Security and Medicare
Payroll taxes and benefit figures from the Social Security Administration.
| Item | Amount |
|---|---|
| Social Security wage base | $184,500 |
| Employee rate (Social Security + Medicare) | 7.65% |
| Self-employment rate | 15.3% |
| Additional Medicare tax | 0.9% over $200,000 single, $250,000 joint |
| Benefit cost-of-living raise | 2.8% |
| Earnings test, under full retirement age | $24,480 per year |
| Earnings test, year you reach full retirement age | $65,160 per year |
Business owners
Quick numbers for sole owners, S corps, partnerships and small companies.
| Item | 2026 |
|---|---|
| Section 179 expensing limit | $2,560,000 |
| Section 179 phase-out begins | $4,090,000 of property placed in service |
| Section 179 SUV cap | $32,000 |
| Bonus depreciation | 100% for property acquired after Jan. 19, 2025 (permanent) |
| QBI deduction | 20%, now permanent |
| QBI limits start (taxable income) | $201,750 ($403,500 joint) |
| Business mileage, Jan. 1 to June 30 | 72.5 cents per mile |
| Business mileage, July 1 to Dec. 31 | 76 cents per mile |
| Medical / military moving mileage | 20.5 cents, then 23.5 cents from July 1 |
| Charity mileage | 14 cents per mile |
| Employer child care credit, max | $500,000 ($600,000 small business) |
- Keep mileage logs split by the two periods, since the rate changed on July 1.
- Domestic research costs can be deducted right away again, starting with 2025 tax years.
Estate and gift tax
Federal rules are generous for most families. The states are where the surprises are.
| Item | 2026 |
|---|---|
| Federal estate and gift exemption | $15,000,000 per person |
| Annual gift exclusion | $19,000 per recipient |
| Gifts to a non-citizen spouse | $194,000 per year |
| Top federal estate and gift rate | 40% |
| New York estate tax exclusion | $7,350,000 (lost fully above $7,717,500) |
| New Jersey | No estate tax. Inheritance tax of 11% to 16% for some heirs |
| Connecticut estate and gift tax | $15,000,000 exemption, 12% above it |
- New York has no gift tax, but most gifts made within 3 years of death are added back.
- In New Jersey, spouses, children, parents and grandchildren pay no inheritance tax.
New York, New Jersey and Connecticut quick facts
State income tax rates for 2026. Each state has its own brackets by filing status.
| State | Income tax rates | Top rate starts | Sales tax (state) |
|---|---|---|---|
| New York | 3.9% to 10.9% | $25,000,000 (10.9%) | 4% plus local |
| New York City (residents) | 3.078% to 3.876% | Added to NY State tax | |
| New Jersey | 1.4% to 10.75% | $1,000,000 (10.75%) | 6.625% |
| Connecticut | 2% to 6.99% | $500,000 single (6.99%) | 6.35% |
- New York cut its five lowest rates by 0.1 point for 2026.
- New York's 9.65%, 10.3% and 10.9% rates are scheduled through 2027.
- Brooklyn, Queens, Bronx, Manhattan and Staten Island residents also pay NYC tax.
Key dates for your 2026 return
Federal dates below. New York, New Jersey and Connecticut personal returns are also due April 15, 2027.
| Date | What is due |
|---|---|
| Jan. 15, 2027 | 4th quarter 2026 estimated tax |
| Feb. 1, 2027 | W-2s and 1099-NEC to workers and the IRS |
| Mar. 15, 2027 | Partnership (1065) and S corp (1120-S) returns or extensions |
| Apr. 15, 2027 | Individual (1040), C corp, trust (1041) and gift (709) returns; 1st quarter 2027 estimate |
| June 15, 2027 | 2nd quarter 2027 estimated tax |
| Sept. 15, 2027 | Extended 1065 and 1120-S; 3rd quarter estimate |
| Oct. 15, 2027 | Extended individual returns |
- An extension gives more time to file, not more time to pay.
Questions to ask me
Bring these to a free call. I'll tell you which rules apply to you.
- Do I qualify for the tips, overtime or senior deduction, and what records do I need?
- Should I itemize now that the SALT cap is $40,400?
- Am I paying enough in estimated tax to avoid a penalty?
- Is my business set up the right way for QBI and payroll?
- Should I buy equipment this year or next?
- Is my estate near the New York cliff, or will my heirs owe New Jersey inheritance tax?
- Does my trust need to file, and is it paying the top rate too soon?
- I got an IRS or state letter. What do I do first?
Talk it through
Book a free 30-minute call about your 2026 taxes. For a quick question, call (718) 510-3166.
General info, not advice for your specific case. Figures are for tax year 2026 (returns filed in 2027) and were checked against IRS, SSA and state sources on Oct. 12, 2026. Laws can change.