For years, taxpayers and financial planners have been eyeing 2026 with a mix of anticipation and dread. It was scheduled to be the year the Tax Cuts and Jobs Act (TCJA) of 2017 expired, sending individual tax rates back to their higher pre-2018 levels. However, the legislative landscape shifted dramatically with the passage of the One Big Beautiful Bill Act (OBBBA) in mid-2025.

Instead of a "sunset," we are seeing a new dawn for the tax code. The OBBBA has locked in many of the tax cuts that Americans have grown accustomed to, while also tweaking other areas to balance the books.

Here is a comprehensive guide to what is staying, what is returning, and what is new for your 2026 tax returns.

The "Permanents": What OBBBA Locked In

The biggest news for 2026 is that the "Great Expiration" has been largely canceled. The OBBBA effectively made the following TCJA provisions permanent:

1. Lower Individual Income Tax Rates

The TCJA reduced marginal tax rates across almost all income brackets (e.g., the top rate dropped from 39.6% to 37%). These lower rates are now here to stay. Without this change, most taxpayers would have seen an immediate tax hike in 2026.

2. The Standard Deduction

The nearly doubled standard deduction introduced in 2018 is also permanent. For 2026, inflation adjustments will likely push the standard deduction to approximately:

$15,000 for single filers
$30,000 for married couples filing jointly

This means millions of taxpayers will continue to find it more beneficial to take the standard deduction rather than itemizing.

3. The Child Tax Credit (CTC)

The CTC remains at the elevated level established by the TCJA (generally $2,000 per qualifying child), and the OBBBA solidified the higher income phase-out thresholds. This ensures that middle- and upper-middle-income families continue to qualify for the full credit.

4. Qualified Business Income (QBI) Deduction

The 20% deduction for pass-through businesses (Section 199A) has been made permanent. This is a massive win for small business owners, sole proprietors, and S-corp shareholders who were facing a potential 20% tax increase on their business income.

The "Returns": What Is Coming Back in 2026

Not everything from the TCJA made the cut. Some pre-2018 tax rules are making a comeback, which could affect how you file.

1. Miscellaneous Itemized Deductions

The OBBBA allowed the suspension of "miscellaneous itemized deductions" to expire. Starting in 2026, taxpayers who itemize can once again deduct certain expenses if they exceed 2% of their Adjusted Gross Income (AGI). Eligible expenses may include:

Unreimbursed employee expenses (e.g., uniforms, union dues)
Investment advisory fees
Tax preparation fees

2. Moving Expenses

The deduction for moving expenses, which was restricted to active-duty military personnel under the TCJA, is expected to broaden again, allowing more taxpayers moving for work-related reasons to claim it.

The "Adjustments": What Is Changing

The OBBBA also introduced some specific adjustments to address the deficit and modernized the code.

1. Estate and Gift Tax Exemptions

While the TCJA doubled the estate tax exemption, the OBBBA reached a compromise. For 2026, the exemption is set at $15 million per person ($30 million for a married couple), indexed for inflation. This is higher than the pre-TCJA levels but slightly modifies the trajectory set in 2017.

2. SALT Deduction Cap Uncertainty

The State and Local Tax (SALT) deduction cap of $10,000 was one of the most contentious parts of the TCJA. The OBBBA provides a temporary increase to the cap, raising it to $20,000 for joint filers for 2026, though its long-term future remains a subject of debate.

Planning for 2026

With these changes in mind, here are a few strategic moves to consider:

Review Your Itemizing Strategy: With the return of miscellaneous deductions, check if your total itemized deductions now exceed the standard deduction. Gather receipts for investment fees and work expenses.
Estate Planning Update: If you have a high net worth, the clarification on the estate tax exemption ($15M) provides a solid baseline for reviewing your trusts and gifting strategies.
Business Structure: If you own a business, the permanent QBI deduction makes pass-through entities (LLCs, S-Corps) continuously attractive compared to C-Corps for many scenarios.

Final Thoughts

The "One Big Beautiful Bill Act" effectively averted a tax cliff that would have impacted nearly every American household. By locking in lower rates and higher standard deductions, 2026 will look consistently stable for most taxpayers, rather than the chaotic reversion many feared. However, as with all things tax-related, the devil is in the details—so keep an eye on the final inflation adjustments later this year.

2026 Tax Updates: Key Changes You Need to Know