2026 and Permanent Provisions

Provisions Effective in 2026 or Made Permanent

• Individual income tax rates remain at lower TCJA levels.
• Standard deduction permanently increased.
• Personal exemption deduction permanently eliminated.
• Miscellaneous itemized deductions subject to 2% AGI threshold permanently ended (except educator expenses).
• Mortgage interest deduction limit ($750,000) made permanent.
• Disallowance of home-equity debt interest (if not used to buy, build, or improve home) made permanent.
• Mortgage insurance premiums remain deductible.
• Casualty loss limitation made permanent and expanded to certain state-declared disasters.
• New overall itemized deduction limit for taxpayers in the 37% bracket.
• Charitable contribution deduction limit for itemizers retained; $1,000 ($2,000 MFJ) allowed for non-itemizers.
• Moving expense deduction permanently eliminated (except Armed Forces).
• Wagering losses limited to 90% of winnings.
• Qualified Business Income (QBI) deduction made permanent and expanded.
• Alternative Minimum Tax (AMT) higher exemption and phase-out thresholds made permanent; phase-out rate increased to 50%.
• Form 1099 reporting threshold increased from $600 to $2,000.
• Alternative Fuel Vehicle Refueling Credit ends for property placed in service after June 30, 2026.
• New Energy Efficient Home Credit ends for homes acquired after June 30, 2026.
• Energy Efficient Commercial Building deduction ends for construction beginning after June 30, 2026.
• Trump Accounts: Available beginning July 4, 2026 for individuals under 18; earnings grow tax-deferred, contributions not deductible.
• Trump Account Pilot Program: IRS contributes $1,000 to eligible children born 2025–2028.