Unlock Your Biggest Tax Refund in 2026 with These Key Changes

What to Know About Upcoming Tax Changes and Your 2026 Refund

As the 2025 expiration date for key provisions of the Tax Cuts and Jobs Act approaches, financial experts are urging households to look ahead. The changes set to take effect in 2026 could mean smaller tax refunds for many Americans unless they start planning now.

The Looming Shift in Tax Brackets

Most significantly, the individual income tax brackets are poised to revert to their pre-2018 levels. This means higher tax rates could apply to a larger portion of a person's income. For example, the current 22% bracket is set to rise back to 25%, the 24% bracket to 28%, and the top rate could return to 39.6%. While the standard deduction—which nearly doubled under the current law—is also scheduled to drop, significantly increasing the taxable income for those who don't itemize.

Other Key Provisions Set to Change

Several other popular deductions and credits are on the chopping block. The state and local tax (SALT) deduction cap, a point of contention in high-tax states, is scheduled to disappear, potentially reinstating the full deduction. Conversely, the Child Tax Credit is slated to be cut in half, returning to $1,000 per child from its current $2,000. The 20% deduction for qualified business income (QBI) for pass-through entities is also set to expire.

Strategies to Maximize Your Financial Position

Proactive planning is essential. Experts suggest several moves to consider before the end of 2025. Accelerating income into 2024 or 2025, when rates are lower, could be beneficial for some, such as through Roth conversions or harvesting investment gains. Conversely, deferring certain itemized deductions, like charitable contributions or large medical expenses, to 2026 when they might offset income taxed at a higher rate, could be a smarter play. Reviewing retirement contributions and estate plans is also highly recommended.

“The window to act under the current favorable rules is closing,” a certified financial planner noted to BNN. “A review with a tax professional isn’t just advisable; it could be crucial for your family’s finances.”

What Do You Think?

• Should the expiring tax cuts be made permanent, or is a return to higher rates necessary to address the national debt?


• Is it fair that the Child Tax Credit is set to be reduced by 50%, impacting middle-class families the most?


• Does the potential return of the full SALT deduction unfairly benefit wealthier homeowners in coastal states?


• With these changes coming, is the traditional goal of a large tax refund a sign of poor financial planning?