---
title: Tax Brackets and Other Changes Under the One, Big Beautiful Bill
description: Several tax provisions are set to change in 2026, including rates, deductions and exclusions that shape how income is taxed.
---

[Tax Law Blog ](https://www.fedortax.com/blog)

# [Tax Brackets and Other Changes Under the One, Big Beautiful Bill](https://www.fedortax.com/blog/tax-brackets-and-other-changes-under-the-one-big-beautiful-bill)

 Written by [on behalf of Robert J. Fedor, Esq., L.L.C.](https://www.fedortax.com/blog/author/on-behalf-of-robert-j-fedor-esq-llc) | Feb 3, 2026 4:00:00 PM

The [2025 tax season](https://www.fedortax.com/blog/dates-and-details-for-2025-tax-filing-season) has just begun and it is good to keep in mind tax brackets and other tips about what to expect in 2026 under the [One Big Beautiful Bill Act (OBBB)](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors).

 

## Consider these tax changes

**Standard deductions:** The [OBBB](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions) raised the standard deduction for tax season 2025. For married couples filing jointly, the standard deduction is $31,500. For taxpayers filing single, the standard deduction is $15,750. The standard deduction for head-of-household is $23,625. Looking ahead to 2026, the standard deduction for married couples filing jointly increases to $32,200, while those filing single see an increase to $16,100, with the head of household standard deduction rising to $24,150.

 

**Marginal tax rates:** High earners will continue to see a top marginal rate of 37 percent in 2026, applying to incomes over $640,600, or $768,700 for married couples filing jointly. The next bracket drops to 35 percent for incomes over $256,225, or $403,550 for joint filers. For single filers, income over $201,775 is taxed at 32 percent, with the rate decreasing to 24 percent at the next bracket beginning at $105,770.

 

**Estate tax exclusions:** The federal estate tax exclusion continues to rise, increasing from $13,990,000 in 2025 to $15,000,000 per taxpayer in 2026. This higher threshold allows for the transfer of additional wealth without triggering federal estate tax. Married couples may shield up to $30,000,000 combined.

 

**Senior deduction:** Changes to the [senior deduction take effect in 2026](https://www.cnbc.com/2026/01/18/big-beautiful-bill-senior-deduction.html), when the OBBB sunsets the provision for taxpayers 65 and older with modified gross income above $75,000, or $150,000 for joint filers. An additional deduction of $6,000 remains available from 2025 through 2028 and applies in addition to the standard deduction.

 

**Foreign earned income exclusion:** [Taxpayers living or working abroad](https://www.fedortax.com/blog/help-for-taxpayers-abroad-information-and-tax-resources-for-expats) will see a modest increase in the [foreign earned income exclusion](https://www.fedortax.com/practice-area-overview/offshore-tax-issues), which rises from $130,000 in 2025 to $132,900 in 2026. The [exclusion](https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion) applies to U.S. citizens and resident aliens who meet the eligibility requirements.

 

These are just some of the provisions affecting the 2025 and 2026 tax seasons. As we [previously discussed](https://www.fedortax.com/blog/more-tax-breaks-for-high-asset-earners), the OBBB includes several measures designed to adjust tax brackets, increase deductions and reduce administrative burdens.

 

## Strategic guidance with offshore tax compliance or IRS audit questions

Taxpayers should take advantage of available opportunities while maintaining compliance. Questions about portfolio planning or [audit exposure](https://www.fedortax.com/download-the-tutorial-on-irs-audits) should be directed to a qualified tax professional. Additional insight about ways to avoid attention from the IRS and a possible [tax audit](https://www.fedortax.com/blog/what-can-trigger-a-tax-audit) is available in our on-target resource, "[Guide to Five Ways to Avoid a Tax Audit](https://www.fedortax.com/download-the-five-ways-to-avoid-a-tax-audit-ebook)."

 

When [tax controversies](https://www.fedortax.com/tax-controversy-and-tax-litigation) arise, our experienced legal counsel can assist with identifying and resolving challenges with the IRS. To [schedule a consultation](https://www.fedortax.com/contact), call 440-250-9709. We serve clients across the U.S. and internationally from offices in Cleveland and Chicago. 

 

[View full post](https://www.fedortax.com/blog/tax-brackets-and-other-changes-under-the-one-big-beautiful-bill)

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