The One Big Beautiful Bill Takes Full Effect in 2026
The One Big Beautiful Bill Act (OBBB) was signed in 2025, but most of its federal tax provisions phase in for tax year 2026. For New Yorkers — who face some of the highest combined state and local rates in the country — the federal changes are a meaningful offset. The numbers below come from IRS Rev. Proc. 2025-32 (IR-2025-103).
Higher Standard Deductions
| Filing Status | 2025 Standard Deduction | 2026 Standard Deduction |
|---|---|---|
| Single | $15,000 | $16,100 |
| Married filing jointly | $30,000 | $32,200 |
| Head of household | $22,500 | $24,150 |
| Married filing separately | $15,000 | $16,100 |
For a single filer, the extra $1,100 deduction is worth roughly $240 in federal tax at the 22% marginal rate — on top of the bracket changes below.
Wider, Lower Brackets
The 2026 federal brackets (single) are 12,400 / 50,400 / 105,700 / 201,775 / 256,225 / 640,600 — every threshold moved up from 2025. Combined with the higher standard deduction, a $75,000 single filer in NYC pays about $7,670 in federal tax for 2026 (taxable income $58,900 after the $16,100 deduction), roughly $670 less than under the 2024 tables.
Child Tax Credit: $2,200 Per Child
For 2026 the Child Tax Credit is $2,200 per qualifying child (up from $2,000). The credit is refundable up to $1,700 per child for 2026. A family with two children claims $4,400 before phaseouts — worth more than the old credit at every income level. New York's own Empire State Child Credit stacks on top.
SALT Cap: $40,400 for 2026 ($20,200 Married Filing Separately)
The state and local tax (SALT) deduction cap was $10,000 a year from 2018 through 2024. Under OBBB it rose to $40,000 for 2025 and is indexed to $40,400 for 2026 ($20,200 for married filing separately) — the first SALT relief since 2017. Above $505,000 of modified adjusted gross income the cap phases down by 30 cents per dollar, but it never drops below $10,000. For NYC couples paying high city and state income taxes plus property tax, the higher ceiling puts itemizing back in reach. See our standard vs. itemized guide for the math.
What Does NOT Change for NY
OBBB is federal-only. New York State tax rates, brackets, and the NY standard deduction ($8,000 single / $16,050 married filing jointly) are set by Albany, not Washington. Your 2026 NY tax is computed from NY's own 2026 brackets — 3.9%–6.85% plus the flat 10.45% / 11.10% / 11.70% top bands — using the calculator's year-aware tables.
What NY Filers Should Do Now
The bottom line: 2026 is the first year OBBB's full federal package applies, and for most NY filers it means a smaller federal bill — with the state side unchanged.