“While many 2025 tax provisions were scheduled to expire, the OBBBA of July 2025 stepped in to make the 10% through 37% tax rates permanent. However, the ‘Sunset’ still brings significant changes: a new 4% inflation boost for lower brackets and a higher $16,100 standard deduction for single filers. This simulator identifies your 2026 Tax Gap—the difference in your liability compared to 2025—so you can adjust your withholdings before the first 2027 filing season.”
2026 Tax Sunset Simulator
Compare your tax liability: 2025 Rates vs. 2026 Scheduled Sunset Rates.
*Calculated for “Single Filer” using simplified progressive brackets. 2026 rates assume a return to 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% structures.
How-To Guide
Input 2026 Gross Income: Enter your total expected salary to see which of the seven federal brackets (10% to 37%) you fall into.
Select Filing Status: Toggle between Single ($16,100 deduction) and Married Filing Jointly ($32,200 deduction).
Analyze the Inflation Adjustment: See how the OBBBA’s 2.7% average inflation adjustment affects your specific income level.
Business Owners: If you are a digital entrepreneur, calculate the impact of the now-permanent $0 personal exemption
Understanding the Basics
The 37% Cap: For 2026, the top 37% rate now applies to single filers earning over $640,600 and married couples over $768,600.
Standard vs. Itemized: The OBBBA permanently raised the standard deduction, making it more appealing than itemizing for most taxpayers.
Child Tax Credit (CTC): The maximum credit is now $2,200 per child, indexed to inflation starting in 2026
Offset Your Tax Bill with Arbitrage
Higher income limits mean more room for profit. Use our AdSense Arbitrage ROI Predictor to calculate how high-margin traffic can bridge your 2026 tax gap
Optimize Your Post-Tax Portfolio
Don’t let inflation erode your gains. Use the Advanced Investment Portfolio Optimizer USA to rebalance your assets for maximum tax efficiency under the OBBBA
Frequently Asked Questions
Did the TCJA rates actually expire? No, the OBBBA made the TCJA’s rate structure (10%, 12%, 22%, 24%, 32%, 35%, and 37%) permanent.
What is the new 2026 ‘Senior Deduction’? Taxpayers 65+ now get an extra $6,000 deduction ($12,000 for couples), which phases out if you earn over $75,000 (single) or $150,000 (joint).
Can I still deduct student loan interest? Yes, the $2,500 annual deduction for student loan interest remains in place under the new law.