Tax Law Changes to Watch for the 2026 Tax Year
Inflation adjustments, contribution limits, and credit changes shift every year. Here's how to keep your office current for the 2026 tax year — and where to verify the official numbers.
TaxWallet Newsroom
August 28, 2026
Every year, the numbers move
The IRS adjusts dozens of figures for inflation each year — standard deductions, tax brackets, retirement contribution limits, and more. Preparing accurate returns means knowing the current-year numbers cold.
What typically changes each year
- Standard deduction amounts rise with inflation for every filing status.
- Tax bracket thresholds shift, so the same income can land in a different bracket.
- Retirement contribution limits (401(k), IRA) are commonly adjusted.
- Credit and phaseout ranges — EITC, Child Tax Credit, education and energy credits — move year to year.
- Mileage rates and certain deduction caps update annually.
How to stay accurate
- Rely on official IRS releases (the annual Revenue Procedure and IRS news releases) for exact figures — don't work from memory or last year's numbers.
- Use software that's updated for the current tax year so brackets and limits are applied automatically.
- Watch for mid-season legislation that can change the rules after the season opens.
Let your software carry the load
TaxWallet's engine is updated for the current tax year, so brackets, deductions, and credit limits apply automatically as you prepare. Your job is to know the client — the math stays current for you.
Bookmark IRS.gov's “Tax Inflation Adjustments” page and confirm the official figures before you file the first return of the season.