Chapter 1 of the 2027 Tax Guide
What’s New: The Five Changes Most Likely to Affect Your 2027 Plan
Every year brings changes to the rates, thresholds, and rules that shape your tax picture. 2025 brought significant changes for taxpayers with the passage of the One Big Beautiful Bill Act (OBBBA). 2026, in contrast, did not see significant tax legislation pass through Congress. For the 2026 tax year, the changes are narrower. Here’s what to watch:
- Cost-of-living adjustments to deductions, exemptions, and tax brackets
- New limits on itemized and charitable deductions
- New benefits for parents, including accounts under IRC Sec. 530 and 529 plan distributions for secondary education
- Temporary exclusions of tips and overtime from income for those who qualify
- A temporary increased deduction for seniors
- A temporary increase in the state and local tax (SALT) deduction cap to $40,400 ($40,800 in 2027)
- State-level changes to property, income, and sales taxes
