Stay ahead of the 2026 tax changes with Boxelder Consulting. Learn what’s changing for capital gains, deductions, and credits.
As the new year approaches, the IRS has released its annual inflation adjustments, and the new list is full of 2026 tax changes that will affect almost every taxpayer. Between higher capital gains thresholds, adjusted standard deductions, and expanded credits under the One Big Beautiful Bill, there’s a lot for us to unpack.
Let’s break down who’s affected, what’s changing, and how you can prepare and how our team of tax professionals at Boxelder is here to help you.
Who Will Be Most Affected by the 2026 Tax Changes
While everyone filing taxes in 2027 (for the 2026 tax year) will see some differences, a few groups will feel the biggest impact:
- Investors: The income thresholds for long-term capital gains taxes are rising, meaning more of your investment profits may fall into the 0% or 15% bracket — especially if your income hasn’t increased significantly since 2025.
- Middle-income families: The standard deduction is rising again, reducing taxable income for most households.
- High earners and estate holders: Larger estate tax exclusions and adjustments to the top income brackets may open new planning opportunities.
- Employers and parents: Expanded childcare credits and adoption credits could offer significant new savings.
Key Changes Coming in 2026
Here are some of the most important tax updates to know:
1. Higher Standard Deductions
For 2026, the standard deduction increases to:
- $32,200 for married couples filing jointly
- $16,100 for single filers
- $24,150 for heads of household
These increases could lower taxable income for millions of Americans.
2. Capital Gains Brackets Are Expanding
The 0% long-term capital gains rate now applies up to:
- $49,450 for single filers
- $98,900 for married couples filing jointly
This means more investors can sell long-term assets, like stocks or property, without paying any federal capital gains tax on those gains, depending on their income level.
3. Estate and Gift Tax Exclusions Are Rising
The estate tax exemption increases to $15 million in 2026, up from $13.99 million in 2025. The annual gift tax exclusion remains at $19,000. These higher limits could make 2026 a strategic year for estate planning and wealth transfers.
4. Enhanced Credits for Families and Employers
- The Earned Income Tax Credit (EITC) rises to $8,231 for families with three or more children.
- The Employer-Provided Childcare Credit now allows small businesses to claim up to $600,000 — a major incentive for offering family-friendly benefits.
- The Adoption Credit increases slightly to $17,670.
Why These Changes Are Happening
Most of the 2026 adjustments stem from the One Big Beautiful Bill (OBBB), a broad tax reform package passed to simplify the tax code and align deductions, credits, and exclusions with ongoing inflation. The IRS updates these thresholds annually, but the OBBB introduced larger, structured adjustments.
How Boxelder Can Help You Prepare
At Boxelder, our team of tax attorneys, CPAs, and enrolled agents will help you stay ahead of updates so you don’t have to. Whether you’re optimizing your investment strategy, managing your business deductions, or planning your estate, we’ll help you:
- Identify new savings opportunities created by 2026 adjustments
- Plan ahead for how inflation indexing affects your long-term goals
- Avoid surprises when filing your 2026 return in 2027
Contact us today for a free consultation.
