New 2026 Tax Deductions You Must Claim Now
Published by FinRise Pro USA |
The US tax landscape is constantly shifting, and 2026 is poised to bring some of the most significant changes since the Tax Cuts and Jobs Act (TCJA) of 2017. While the specifics of tax law often involve technical jargon, proactive planning around **new deductions and expiring provisions** is essential for maximizing your tax savings.
This guide highlights the key tax deductions and credits for the 2026 tax year that US taxpayers need to be aware of and start planning for immediately.
The Sunset of TCJA Provisions: Preparing for 2026
The biggest factor driving the 2026 tax year changes is the **scheduled expiration ("sunset") of many provisions of the TCJA**. This is not a "new deduction" but a return to older tax laws, which changes the value of every dollar you earn and deduct.
1. Changes to Individual Income Tax Rates
The current lower income tax rates are scheduled to revert to the higher, pre-2018 levels. While the bracket structure will remain similar, the percentages applied to your income will increase, making deductions even more valuable.
| Tax Rate Category | 2025 (TCJA) Rate | 2026 (Post-Sunset) Rate |
|---|---|---|
| Low Bracket (e.g., 10%) | Stays 10% | Stays 10% |
| Middle Bracket (e.g., 22%) | 22% | 25% |
| High Bracket (e.g., 32%) | 32% | 33% |
Action Item: Maximize tax-deferred savings (401(k), traditional IRA) now, while tax rates are lower, to push taxable income into the expected higher-rate environment of retirement.
New/Returning Deductions to Prioritize Now
2. The Return of the Miscellaneous Itemized Deduction
The TCJA eliminated the deduction for **miscellaneous itemized deductions subject to the 2% floor** (e.g., unreimbursed employee expenses, investment expenses). This deduction is scheduled to return in 2026. If it returns, employees with significant work-related costs (that aren't reimbursed by their employer) may finally be able to deduct these expenses again, provided they exceed 2% of their Adjusted Gross Income (AGI).
3. Significant Change to the Standard Deduction
The TCJA dramatically increased the standard deduction, leading many US taxpayers to stop itemizing. In 2026, the standard deduction is scheduled to revert to its lower, pre-2018 level (adjusted for inflation). **This reversion means itemizing deductions will become beneficial for many more taxpayers.**
- Strategy: Start tracking all itemized expenses (especially state and local taxes, mortgage interest, and medical expenses) now. You may need to shift back to itemizing to get the biggest tax benefit.
Learn how to properly track deductible expenses in our guide: The Ultimate Guide to Tax-Proof Expense Tracking.
4. Estate and Gift Tax Exemption Reduction
While not a deduction for most, the federal estate and gift tax exemption is scheduled to revert from its current high level (over $13 million per person) back down to a pre-TCJA level (approximately $6.8 million per person, adjusted for inflation). While only affecting the wealthy, anyone with a high net worth must plan now to utilize the higher 2025 exemption before the reduction takes effect in 2026.
Specialized Claim: Residential Energy Credits
While often not strictly "new," deductions related to residential energy efficiency (like the Nonbusiness Energy Property Credit) and electric vehicle credits continue to be modified and are highly valuable. Ensure all receipts for energy-efficient home improvements made in 2025 are saved, as these credits remain a powerful tool for reducing your **tax liability dollar-for-dollar**.
Check the latest IRS guidance on the clean energy credits here: Update on Residential Clean Energy Tax Credits.
Disclaimer: FinRise Pro USA is for informational purposes only. Tax laws are complex and subject to political change. The sunset of TCJA provisions is currently scheduled but Congress may extend or modify them. Always consult a Certified Public Accountant (CPA) or licensed tax professional for advice specific to your financial situation.