Important Tax Changes to Know Before You File in 2026

Tax rules rarely stay the same, with exemptions, deductions and thresholds often changing from year to year. This year is no exception, as several updates apply to 2025 taxes filed by April 2026. Before gathering documents and preparing your return, it’s important to review the current tax rules to ensure you remain compliant and take advantage of any applicable changes.

Do you have questions about tax planning? Speak with a financial advisor who serves your area today.

Deadlines for Filing Returns and Extensions

Tax filing day in 2026 falls on Wednesday, April 15.

If you file for a tax extension, the deadline for both individual and self-employed filers is October 15. However, an extension gives you more time to file, not more time to pay. You’ll still need to make at least an estimated tax payment by April 15 or face significant penalties.

‘Tax Season’ vs. ‘Tax Year’: What’s the Difference?

What’s called “tax season” is the time of year for preparing and filing your return for the previous calendar year. This typically runs from early January to April 15. Now is when you’ll also receive W2s, 1099s and other income statements needed for filing your return.

On the other hand, the “tax year” is the calendar year in which you earn your taxable income, despite the fact that you file it the following year. In turn, tax year 2025 would be paid by April 15, 2026. This will involve any income earned and other financial transactions during the tax year covered in the return you file during the “tax season.”

Inflation-Adjusted Tax Brackets

The IRS automatically adjusts tax brackets each year to account for inflation. Otherwise, you’d be paying an increasingly higher marginal tax rate every year. In 1978, for example, a married couple making $11,200 found themselves in the 22% bracket, while they’d need to earn $89,450 to hit that rate for 2023.

Here’s a breakdown of the brackets for the 2025 tax year.

2025 Federal Tax Brackets

Rate	Single	Married, Filing Jointly	Married, Filing Separately	Head of Household
10%	$0 – $11,925	$0 – $23,850	$0 – $11,925	$0 – $17,000
12%	$11,925 – $48,475	$23,850 – $96,950	$11,925 – $48,475	$17,000 – $64,850
22%	$48,475 – $103,350	$96,950 – $206,700	$48,475 – $103,350	$64,850 – $103,350
24%	$103,350 – $197,300	$206,700 – $394,600	$103,350 – $197,300	$103,350 – $197,300
32%	$197,300 – $250,525	$394,600 – $501,050	$197,300 – $250,525	$197,300 – $250,500
35%	$250,525 – $626,350	$501,050 – $751,600	$250,525 – $375,800	$250,500 – $626,350
37%	$626,350+	$751,600+	$375,800+	$626,350+

Inflation-Adjusted Standard Deductions

The standard deduction recently saw a big increase, which makes itemizing deductions unnecessary for many filers. For the 2025 tax year, the adjusted standard deductions are as follows:

Single or Married Filing Separately: $15,750
Married Filing Jointly or Qualifying Surviving Spouse: $31,500
Head of Household: $23,625

Taxes for Restarted Student Loan Payments

A young woman prepares to file her taxes.

The interest on most student loans is tax-deductible, so if you resumed making loan payments after the pandemic pause ended, remember to total the amount of interest you paid up until Dec. 31, 2023.

Up to $2,500 of student loan interest is deductible every year and you don’t have to itemize to claim it. Instead, the deduction is taken as an income adjustment on Schedule 1. Those adjustments result in a dollar-for-dollar cut to your tax bill, which could be very valuable depending on how much you paid.

Electric Vehicle Credits

Automakers call EVs the car of the future. If you purchased an EV in the past 12 months, you can claim a federal tax credit of up to $7,500 for a new electric vehicle, or up to $4,000 for a used EV. Because it’s free money – like the student loan interest deduction – that reduces your total tax bill, there are restrictions of course.

First, your modified adjusted gross income (MAGI, for short) must be below the following thresholds:

$300,000 for married couples filing jointly
$225,000 for heads of household
$150,000 for all other filing statuses

The individual vehicle also must qualify for the deduction, which you can check here.

Tips for Filing Your Taxes

If you want to get the most benefit out of planning your taxes, consider working with a professional. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
During the months in between tax time, use SmartAsset’s paycheck calculator to get an idea of how much taxes will eat into your pay. Knowing this can help you build a budget and a financial plan.