OBBBA Tax Calculator 2026
The One Big Beautiful Bill Act (OBBBA) made sweeping changes to the federal tax code starting in 2026. Use our free calculator below to see exactly how the new law affects your 2026 tax bill compared to what you would have paid without it — no sign-up required.
Key OBBBA Tax Changes for 2026
New $40,400 Cap
The state and local tax (SALT) deduction cap rises from $10,000 to $40,400 for most taxpayers. High earners face a phaseout back to $10,000.
Doubled & Inflation-Indexed
The child tax credit is doubled compared to pre-TCJA law and indexed to inflation. Personal and dependent exemptions are zeroed out.
New Temporary Deduction
Qualifying tipped income becomes partially deductible. This is a temporary provision set to expire in future years.
New Temporary Deduction
Qualifying overtime pay becomes partially deductible. Like the tip deduction, this is a temporary provision.
New for Seniors
A new additional deduction for seniors is introduced, providing extra tax relief for older Americans.
New Deduction
Interest paid on qualifying auto loans becomes partially deductible, providing relief for car owners.
Average Tax Impact of OBBBA in 2026
On average, the OBBBA increases after-tax income by approximately 5.4% in 2026 compared to letting the TCJA expire. The impact varies significantly by income group:
Source: Tax Foundation analysis of OBBBA provisions, 2025. Actual impact varies based on individual circumstances including filing status, dependents, deductions, and state of residence.
Calculate Your OBBBA Tax Impact
Enter your details below to see exactly how the One Big Beautiful Bill Act changes your 2026 federal income tax compared to what you would have paid without it. All calculations update instantly — no sign-up, no email required.
OBBBA Tax Comparison Calculator
Compare your 2026 federal taxes under OBBBA vs. prior law
Affects Child Tax Credit ($2,200 per child under OBBBA)
State income tax + property tax + sales tax
OBBBA-Specific Deductions (new in 2026)
Tips from traditionally tipped jobs
Time-and-a-half beyond 40 hrs/week
U.S.-assembled vehicles only
Your OBBBA Tax Comparison
Comparing your 2026 federal income tax under OBBBA vs. what you'd pay if TCJA had expired
Under OBBBA (2026)
- Gross income
- $75,000
- Standard deduction
- $16,100
- SALT deduction (cap: $40,400)
- $5,000
- Taxable income
- $58,900
- Tax before credits
- $7,945
- Child Tax Credit
- -$0
- Total federal tax
- $7,945
- Effective rate
- 10.6%
- After-tax income
- $67,056
Without OBBBA (Pre-TCJA)
What you'd pay if TCJA had expired in 2025
- Gross income
- $75,000
- Standard deduction
- $8,000
- Personal exemptions
- $5,300
- SALT deduction (no cap)
- $5,000
- Taxable income
- $61,700
- Tax before credits
- $10,405
- Child Tax Credit
- -$0
- Total federal tax
- $10,405
- Effective rate
- 13.9%
- After-tax income
- $64,595
Calculation Disclaimer
This calculator provides estimates for educational purposes only. The OBBBA comparison uses simplified assumptions (e.g., standard deduction vs. itemizing decision is simplified; personal exemption phaseout is not modeled). For tax advice specific to your situation, consult a licensed CPA or tax professional. Actual savings may vary based on individual circumstances including itemized deductions, AMT, and other factors not captured in this simplified model.
Additional Resources
Take-Home Pay Calculator (2026)
Get your full paycheck breakdown including federal, FICA, and state taxes with the OBBBA-updated 2026 brackets.
Open calculator2026 Federal Tax Brackets
View the complete 2026 federal income tax brackets and standard deduction amounts as updated by OBBBA.
View bracketsWhat Is the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act (OBBBA) is a comprehensive federal tax law passed in 2025 that permanently extends and modifies the individual tax provisions originally established by the Tax Cuts and Jobs Act (TCJA) of 2017. Without OBBBA, the TCJA's individual tax cuts were scheduled to expire at the end of 2025, which would have resulted in tax increases for approximately 62% of taxpayers.
The OBBBA makes the TCJA's individual income tax brackets and standard deduction amounts permanent, preventing the scheduled reversion to higher pre-2018 rates. It also introduces several new deductions — including temporary deductions for tipped income, overtime pay, and auto loan interest — and significantly raises the SALT deduction cap from $10,000 to $40,400 for most taxpayers.
The child tax credit is doubled under OBBBA and indexed to inflation, providing increased benefits for families with qualifying children. However, personal and dependent exemptions remain at zero, continuing the TCJA's elimination of these exemptions.
Detailed OBBBA Provisions for 2026
1. SALT Deduction Cap Increased
The state and local tax (SALT) deduction cap, which limits the total amount of state income, property, and sales taxes that can be deducted on a federal return, is raised from $10,000 to $40,400 for most taxpayers. However, single filers with modified adjusted gross income (MAGI) above $500,000 and married filing jointly filers with MAGI above $1,000,000 face a phaseout that gradually reduces their cap back to $10,000.
2. Child Tax Credit Doubled
The maximum child tax credit is doubled compared to pre-TCJA law and is now indexed to inflation. The credit remains partially refundable as the additional child tax credit (ACTC). The phaseout thresholds are also adjusted for inflation, allowing more middle-income families to claim the full credit amount.
3. New Tip Income Deduction (Temporary)
Qualifying tipped income earned in certain traditionally tipped occupations becomes partially deductible. This deduction is temporary and scheduled to expire after a set period. Workers in industries like restaurants, hospitality, and personal services may benefit from this new provision.
4. New Overtime Pay Deduction (Temporary)
Qualifying overtime pay — paid at time-and-a-half for hours worked beyond 40 in a week — becomes partially deductible. Like the tip deduction, this is a temporary provision. This can provide meaningful tax relief for hourly workers who regularly earn overtime.
5. New Senior Additional Deduction
Taxpayers aged 65 and older can claim a new additional deduction on top of the standard deduction. This provides extra tax relief for seniors on fixed incomes and supplements the existing additional standard deduction for elderly taxpayers.
6. New Auto Loan Interest Deduction
Interest paid on qualifying auto loans becomes partially deductible, capped at a specific amount per year. This deduction applies to loans for vehicles assembled in the United States, providing both tax relief and an incentive to purchase domestically manufactured vehicles.
OBBBA Tax Calculator FAQ
What is the One Big Beautiful Bill Act (OBBBA)?
The OBBBA is a 2025 federal tax law that made the TCJA individual tax cuts permanent, doubled the child tax credit, raised the SALT deduction cap to $40,400 for most filers in 2026, and added new temporary deductions for tipped income, overtime pay, seniors, and auto loan interest.
What is the new SALT cap under OBBBA in 2026?
Under OBBBA, the state and local tax (SALT) deduction cap rises to $40,400 for most taxpayers in 2026, up from the $10,000 cap in place from 2018 to 2025. The highest-earning taxpayers face a phaseout that brings them back down to a $10,000 cap.
How much does the OBBBA lower my taxes?
On average, OBBBA increases after-tax income by about 5.4% in 2026 compared to letting the TCJA expire. The boost ranges from roughly 2.6% for the bottom 20% of earners to about 6.3% for those in the 60th to 80th percentile.
Does OBBBA change the child tax credit?
Yes. OBBBA doubles the child tax credit compared to pre-TCJA law and indexes the maximum amount to inflation. It also zeroes out personal and dependent exemptions.
Are the new tip and overtime deductions permanent?
No. The OBBBA deductions for qualifying tipped income and overtime income are temporary and set to expire. Seniors and auto loan interest deductions are also newly introduced under the law.
When do the OBBBA tax changes take effect?
Most OBBBA provisions take effect starting in the 2026 tax year (taxes filed in early 2027). Some provisions are retroactive to 2025, while the temporary tip and overtime deductions begin in 2026.
Is the OBBBA tax calculator free to use?
Yes. The TheTaxCalc OBBBA tax calculator is 100% free, requires no sign-up, no email, and no personal information. You can use it as many times as you like without creating an account.
Tax Disclaimer
This calculator and the information on this page are provided for educational purposes only and do not constitute tax, legal, or financial advice. While we strive to keep our calculations accurate and up-to-date with the latest IRS guidance, tax laws change frequently. For advice specific to your situation, consult a licensed CPA or tax professional.