Earlier this month, Trump’s “big, beautiful bill” was approved by Congress and is set to be signed into law by the president on July 18. While that bill addresses numerous topics, one of the topics that most people want to know about is tax law. How will tax rates change under the bill? What will your taxes look like next year, with this bill in place? Here’s what we know about the bill’s tax provisions, and how the changes within it might impact you.

According to an analysis performed by the Tax Policy Center, the majority of American households should get a tax cut in 2026—about 85% of them, to be exact. Of course, not all of these cuts would be permanent. For example, the bill initiates a new deduction for senior citizens that is only intended to last a few years. So, by 2030, the percentage of homes continuing to see a tax break would be about 70% instead of 85%. More than half of these tax benefits will be given to homes in the top 20% of annual household incomes; these are homes that earn about $217,000 per year or more.

Now, let’s dive a little deeper into just how much of a tax break you might see in 2026. Of course, keep in mind that these are only estimates. The exact percentages saved in each tax bracket are not set in stone, and your final tax bill will be based on far more factors than the provisions in this new bill.

Estimated Tax Savings by Income

While estimates on tax savings vary depending on which analysis you’re looking at, most analysts largely agree that the tax breaks increase with household income. So, let’s start at the top and work our way down:

• Over $1.1 million: These earners represent the top 1% of annual incomes, and would see their after-tax income increase by roughly 3.5%.
• $460,000 to $1.1 million: This bracket of Americans would see the biggest tax break, with an after-tax income increase of 4.4%, which amounts to about $21,000.
• $318,000 to $460,000: Households in this income range would likely see their after-tax income increase by $8,900, or 3.1%.
• $217,000 to $318,000: Still considered high-income earners, this group rounds out the top 20% of household incomes. Those in this group can expect a 3.1% increase in after-tax income, or about $8,900 a year.
• $50,000 to $217,000: Tax breaks below $217,000 decrease significantly, with most taxpayers in this range seeing between 2.3% and 2.5% more after-tax income, or $3,000 annually.
• $34,600 to $50,000: This group, considered “low-income” households, would see after-tax boosts between 1.5% and 1.9%, or around $630 per year.
• Under $34,600: The lowest-income households would see the least benefit from the tax breaks, with the bottom 20% of taxpayers seeing their taxes decrease by about $150 a year, or 0.8%.

Other New Tax Cuts

Tax brackets are not the only thing that would change under the “big, beautiful bill.” A number of other tax deductions will start this year—some temporary, some permanent—and will apply on your next tax return. These changes include:

• A permanent increase in the child tax credit to $2,200.
• A permanent increase of $750 in the standard deduction.
• A $6,000 deduction for seniors over 65, which will expire in 2029.
• A $25,000 deduction designed to eliminate taxes on tips, which also lasts three years.
• A $12,500 deduction to cut taxes on overtime, also lasting through 2028.
• An increase in the SALT cap (amount deductible for state and local taxes) from $10,000 to $40,000.

Get Help with Your Tax Planning

We understand that changes to tax law can be stressful and confusing. If you’d like to get a more personalized estimate on how these changes will impact your tax return, we encourage you to reach out to The Accounting Guys. Our professional tax planners in Provo, UT, can help you with adjusting your current tax plan, if needed, and provide you with more information about what you can expect on your next tax return. Contact The Accounting Guys today to schedule a tax planning meeting with an experienced CPA.