UseCalcPro
Home
MathFinanceHealthConstructionAutoPetsGardenCraftsFood & BrewingToolsSportsMarineEducationTravel
Blog
  1. Home
  2. Finance

Tax Reform Calculator 2026 — OBBBA vs TCJA

See how much you save under the 2026 OBBBA tax reform compared to what your taxes would have been if the TCJA had expired

Annual Tax Savings

$3,359

OBBBA Tax

$7,872

If Expired

$11,231

Monthly

$280

$
0

children

Your Annual Tax Savings

$3,359

per year under OBBBA

OBBBA Tax

$7,872

If Expired

$11,231

Monthly

$280

Side-by-Side Comparison

OBBBA (Current)

If TCJA Expired

Standard Deduction$16,100$8,300
Taxable Income$58,900$66,700
Tax Before Credits$7,872$11,231
Final Tax Owed$7,872$11,231
Effective Rate10.5%15.0%

Tax Comparison

OBBBA Tax$7,872
If TCJA Expired$11,231
Your Savings$3,359

Key OBBBA Provisions

Standard deduction nearly doubled

$8,300 → $16,100

Lower bracket rates

12% vs 15%, 22% vs 25%, 24% vs 28%

Higher child tax credit

$2,000 vs $1,000 per child

Based on 2026 federal income tax brackets. Uses standard deduction only. Does not include state taxes, AMT, or phaseouts.

Frequently Asked Questions

Q

What is the OBBBA tax reform and how does it affect my 2026 taxes?

The One Big Beautiful Bill Act (OBBBA) made the 2017 Tax Cuts and Jobs Act (TCJA) provisions permanent. Without OBBBA, the TCJA would have expired after 2025, reverting tax rates to higher pre-2018 levels. The OBBBA keeps the lower 10/12/22/24/32/35/37% bracket structure, nearly doubled standard deduction ($16,100 single / $32,200 married), and $2,000 child tax credit.

  • TCJA provisions made permanent — no expiration date
  • Standard deduction: $16,100 single / $32,200 married (nearly doubled from pre-2018)
  • Tax bracket rates: 10/12/22/24/32/35/37% (lower than pre-TCJA rates)
  • Child tax credit: $2,000 per child (up from $1,000 pre-TCJA)
  • Without OBBBA, 62% of taxpayers would have faced a tax increase starting 2026
Q

How much does the average family save under OBBBA vs TCJA expiration?

Savings vary by income and filing status. A single filer earning $75,000 saves about $3,359/year. A married couple with 2 kids earning $150,000 saves about $8,719/year. The biggest savings come from the higher standard deduction (nearly doubled) and lower bracket rates. Families with children benefit additionally from the $2,000 child tax credit vs $1,000 under expired rates.

  • Single filer at $50K: saves ≈$2,200/year ($183/month)
  • Single filer at $75K: saves ≈$3,359/year ($280/month)
  • Married couple, no kids, $100K: saves ≈$4,500/year ($375/month)
  • Married couple, 2 kids, $150K: saves ≈$8,719/year ($727/month)
  • Head of household, 1 child, $50K: saves ≈$3,028/year ($252/month)
Filing Status & IncomeOBBBA TaxIf Expired TaxAnnual Savings
Single, $50K$4,348$6,548$2,200
Single, $75K$7,872$11,231$3,359
Married, $100K (no kids)$7,044$11,544$4,500
Married, $150K (2 kids)$11,744$20,463$8,719
Head of Household, $50K (1 child)$762$3,790$3,028
Q

What are the 2026 tax brackets under OBBBA?

The 2026 OBBBA tax brackets for single filers are: 10% ($0-$11,925), 12% ($11,925-$48,475), 22% ($48,475-$103,350), 24% ($103,350-$197,300), 32% ($197,300-$250,525), 35% ($250,525-$626,350), 37% ($626,350+). For married filing jointly, brackets are roughly doubled. These are the same TCJA rates, now permanent.

  • 10% bracket: $0–$11,925 (single) / $0–$23,850 (married)
  • 12% bracket: $11,925–$48,475 (single) / $23,850–$96,950 (married)
  • 22% bracket: $48,475–$103,350 (single) / $96,950–$206,700 (married)
  • 24% bracket: $103,350–$197,300 (single) / $206,700–$394,600 (married)
  • Top rate: 37% on income above $626,350 (single) / $751,600 (married)
RateOBBBA (2026)If Expired (Pre-TCJA)Rate Difference
Lowest10%10%0%
2nd bracket12%15%−3%
3rd bracket22%25%−3%
4th bracket24%28%−4%
5th bracket32%33%−1%
Top bracket37%39.6%−2.6%
Q

What would my taxes have been if TCJA had expired?

If TCJA expired, rates would have reverted to: 10/15/25/28/33/35/39.6% (vs current 10/12/22/24/32/35/37%). The standard deduction would have dropped from $16,100 to approximately $8,300 for single filers. The child tax credit would have halved from $2,000 to $1,000. Most taxpayers earning $50K-$500K would have paid $1,500-$8,000 more per year.

  • Standard deduction would drop: $16,100 → $8,300 (single), $32,200 → $16,600 (married)
  • Personal exemption would return at ≈$5,300 per person (partially offsetting deduction loss)
  • Child tax credit would halve from $2,000 to $1,000 per child
  • 2nd bracket jumps from 12% to 15% — affects income $11,925–$48,475
  • 4th bracket jumps from 24% to 28% — biggest rate increase for upper-middle income
Q

Who benefits most from the OBBBA tax reform?

Middle-income families with children see the largest percentage savings. A married couple with 2 kids earning $100K saves roughly $6,000/year (the doubled child credit alone saves $2,000). High earners save in absolute dollars due to lower rates on upper brackets. Single filers benefit primarily from the nearly doubled standard deduction — saving $2,000-5,000 depending on income.

  • Married with 2 kids at $100K: ≈$6,000/year savings (6% of income)
  • Doubled child credit ($1,000 → $2,000) saves $1,000 per child per year
  • Standard deduction increase saves $1,000–$2,500 depending on bracket
  • Single filers at $75K: effective rate drops from 15.0% to 10.5%
  • Top earners ($500K+) save $10,000–20,000 in absolute dollars (2–4% of income)

Example Calculations

1Single Filer — $75,000 Income

Inputs

Filing StatusSingle
Annual Income$75,000
Dependents0

Result

Annual Tax Savings$3,359
OBBBA Tax$7,872
If Expired$11,231
Effective Rate10.5% vs 15.0%

A single filer earning $75,000 saves $3,359/year under OBBBA. The savings come from both the higher standard deduction ($16,100 vs $8,300 — saving $7,800 in deductions) and lower bracket rates (12% vs 15% on the second bracket, 22% vs 25% on the third). Their effective rate drops from 15.0% to 10.5%.

2Married with 2 Kids — $150,000 Income

Inputs

Filing StatusMarried Filing Jointly
Annual Income$150,000
Dependents2

Result

Annual Tax Savings$8,719
OBBBA Tax$11,744
If Expired$20,463
Monthly Savings$727

A married couple with 2 children earning $150,000 saves $8,719 per year — $727/month. The child tax credit alone saves $2,000 (2 kids x $1,000 difference), plus $6,719 from lower rates and the doubled standard deduction ($32,200 vs $16,600). Their effective rate drops from 13.6% to 7.8%.

3Head of Household — $50,000 Income

Inputs

Filing StatusHead of Household
Annual Income$50,000
Dependents1

Result

Annual Tax Savings$3,028
OBBBA Tax$762
If Expired$3,790
Effective Rate1.5% vs 7.6%

A head of household filer with 1 child earning $50,000 saves $3,028/year under OBBBA — their effective rate drops from 7.6% to just 1.5%. The higher standard deduction ($24,150 vs $12,400) and $1,000 extra child credit provide massive savings at this income level.

Formulas Used

Progressive Tax Calculation

Tax = Σ (Income in Bracket × Bracket Rate) for each bracket

Federal income tax uses progressive brackets — only income within each range is taxed at that rate, not your entire income.

Where:

Income in Bracket= The portion of taxable income falling within a specific bracket range ($)
Bracket Rate= The tax rate for that bracket (10%-37% under OBBBA)

Tax Savings from Reform

Savings = Tax if Expired − Tax under OBBBA

Your savings is the difference between what you would owe under expired pre-2018 rates versus the current OBBBA rates.

Where:

Tax if Expired= Tax computed using pre-TCJA rates with lower standard deduction ($)
Tax under OBBBA= Tax computed using current TCJA/OBBBA rates ($)

Understanding the 2026 Tax Reform: OBBBA vs TCJA Expiration

1

What OBBBA Preserved and What Would Have Changed

62% of US taxpayers would have faced a tax increase in 2026 if the Tax Cuts and Jobs Act (TCJA) had expired as scheduled. The One Big Beautiful Bill Act (OBBBA) made TCJA’s provisions permanent, preventing the standard deduction from halving (from $16,100 to $8,300 for single filers), tax bracket rates from rising 3–4 percentage points, and the child tax credit from dropping from $2,000 to $1,000 per child.

The three biggest provisions preserved by OBBBA are: (1) the nearly doubled standard deduction ($16,100 single / $32,200 married versus the pre-TCJA $8,300 / $16,600), (2) lower bracket rates across the board (12% instead of 15%, 22% instead of 25%, 24% instead of 28%, 37% instead of 39.6%), and (3) the $2,000 child tax credit with $1,600 refundable. Together, these save the median American household $2,000–$4,500 per year.

Without OBBBA, the personal exemption ($5,300 per person) would have returned, partially offsetting the deduction loss. However, the net effect for most filers — especially those without dependents — would still have been a tax increase. A single filer would have lost $7,800 in standard deduction but regained only $5,300 in personal exemption, resulting in $2,500 less in above-the-line deductions and $375–$600 more in tax.

ProvisionOBBBA (Current)If ExpiredImpact
Standard deduction (single)$16,100$8,300−$7,800 deduction
Standard deduction (married)$32,200$16,600−$15,600 deduction
2nd bracket rate12%15%+3% on $11,925–$48,475
3rd bracket rate22%25%+3% on $48,475–$103,350
Child tax credit$2,000$1,000−$1,000 per child
Personal exemption$0$5,300/personWould partially offset

Tip: Enter your filing status, income, and dependents into the calculator to see your exact dollar savings under OBBBA versus expiration.

2

Tax Savings by Filing Status and Income Level

$3,359 per year — that is the OBBBA tax savings for a single filer earning $75,000, reducing their effective federal rate from 15.0% to 10.5%. The savings come from two sources: the higher standard deduction (saving $1,716 at the 22% marginal rate on the extra $7,800) and lower bracket rates (saving $1,643 from the 3-point reductions in the 12% and 22% brackets).

Families with children benefit the most in percentage terms. A married couple with 2 kids earning $150,000 saves $8,719/year — $727/month. The doubled child credit alone ($2,000 vs $1,000 per child) saves $2,000 for two children. Combined with the $15,600 higher standard deduction and lower bracket rates, their effective rate drops from 13.6% to 7.8%.

Head of household filers at lower income levels see the most dramatic effective rate reductions. A single parent earning $50,000 with one child pays just $762 in federal tax under OBBBA versus $3,790 if expired — a savings of $3,028 that reduces their effective rate from 7.6% to 1.5%. The combination of higher head-of-household deduction ($24,150 vs $12,400) and the $1,000 child credit increase creates outsized savings at this income level.

Annual Tax Savings Under OBBBA$/yr$9K$7K$5K$3K$1K$2,200Single $50K$3,359Single $75K$4,500Married $100K$8,719Married $150K2 kids$3,028HoH $50K1 childSavings = what you would owe if TCJA expired minus what you owe under OBBBA
3

2026 Tax Brackets: OBBBA Rates vs Pre-TCJA Rates

3–4 percentage points lower across the middle brackets — that is the rate advantage OBBBA provides versus the pre-TCJA structure that would have returned. The second bracket drops from 15% to 12%, the third from 25% to 22%, the fourth from 28% to 24%, and the top rate from 39.6% to 37%. Only the 10% bottom bracket remains identical.

For a single filer with $100,000 taxable income, the bracket-by-bracket savings are: $0 on the first $11,925 (10% under both), $1,097 on the next $36,550 (12% vs 15%), $2,346 on the next $54,875 up to $103,350 (22% vs 25%), plus the standard deduction increase saves an additional $1,716. Total savings: approximately $5,159 in federal tax annually.

The top marginal rate of 37% (versus 39.6%) primarily benefits taxpayers earning above $626,350 (single) or $751,600 (married). However, the cumulative effect of lower rates on all brackets below means that high earners also benefit from the 12/22/24/32/35% rates on their first $626,350. A taxpayer earning $500,000 saves approximately $12,000–$15,000 annually — roughly 70% from middle-bracket reductions and 30% from the lower top rate.

*2026 projected bracket thresholds with inflation adjustments
BracketOBBBA RateIf Expired RateSavings per $10K in Bracket
Lowest10%10%$0
2nd bracket12%15%$300
3rd bracket22%25%$300
4th bracket24%28%$400
5th bracket32%33%$100
Top bracket37%39.6%$260
4

The Child Tax Credit: $2,000 vs $1,000

$1,000 more per child per year — OBBBA preserves the TCJA’s doubled child tax credit of $2,000 per qualifying child under 17, with $1,600 of that amount refundable (available even if you owe $0 in tax). If the TCJA had expired, the credit would have reverted to $1,000 per child with a lower refundable portion of $1,000.

For a family with 3 children, the credit difference is $3,000/year ($6,000 vs $3,000 — or $250/month more in your pocket). The credit phases out at $200,000 AGI for single filers and $400,000 for married couples — thresholds high enough that 90% of families with children qualify for the full amount.

The refundable portion matters most for lower-income families who owe little or no federal tax. A single parent earning $30,000 with 2 children receives $3,200 in refundable credit under OBBBA ($1,600 × 2) versus $2,000 under expired rules ($1,000 × 2) — a $1,200 increase that functions as a direct cash benefit. Use the income tax calculator to see how the child tax credit reduces your total tax bill.

Tip: The child tax credit is per child, not per household — families with multiple children see the largest dollar savings under OBBBA.

  • $2,000 per child under 17 (OBBBA) vs $1,000 (if expired) — $1,000 more per child per year
  • $1,600 refundable portion — received even if you owe $0 in federal tax
  • Phase-out begins at $200K single / $400K married — 90% of families qualify for full credit
  • 3 children = $6,000 credit (OBBBA) vs $3,000 (expired) — $3,000 annual difference, $250/month
  • No earned income requirement for non-refundable portion — any tax liability can be offset
5

Standard Deduction vs Itemizing Under OBBBA

88% of taxpayers now take the standard deduction under OBBBA versus 70% before TCJA, because the nearly doubled deduction ($16,100 single / $32,200 married) exceeds itemizable expenses for most filers. Before TCJA, the $8,300 single deduction was low enough that homeowners with mortgage interest, state taxes, and charitable giving could often itemize for a larger deduction.

The $10,000 SALT (State and Local Tax) cap — also preserved by OBBBA — limits the deductibility of state income tax, property tax, and local taxes to $10,000 combined. This cap primarily affects high-income residents of high-tax states like California, New York, and New Jersey, who may pay $15,000–$30,000+ in state and property taxes but can only deduct $10,000. For these filers, the SALT cap partially offsets the benefits of lower bracket rates.

For most Americans, the math is straightforward: the standard deduction produces a lower tax bill than itemizing unless your combined mortgage interest, SALT (capped at $10,000), and charitable contributions exceed $16,100 (single) or $32,200 (married). A couple with a $300,000 mortgage at 6.5% ($19,500/year in interest), $10,000 SALT cap, and $5,000 in charitable giving has $34,500 in deductions — just $2,300 above the standard deduction, saving only $506–$552 by itemizing at the 22–24% rate.

*Assumes 6.5% mortgage rate, $10,000 SALT cap, standard charitable giving
ScenarioStandard DeductionItemized DeductionBetter Option
Renter, no donations$16,100$2,000–$5,000Standard
Homeowner, $250K mortgage$32,200 (married)$28,000–$32,000Standard (close)
Homeowner, $500K mortgage$32,200 (married)$38,000–$45,000Itemize
High SALT state, high income$32,200 (married)$35,000–$50,000Itemize

Related Calculators

Sales Tax Calculator

Calculate state and local sales tax

Investment Calculator

Project long-term investment growth

Salary Calculator

Convert hourly to annual salary

Retirement Calculator

Plan your retirement savings

No-Buy Challenge Calculator 2026 — Savings

Calculate how much you'll save with a no-buy or low-buy challenge in 2026. Enter your actual discretionary spending to see your total savings potential.

W2 Tax Calculator

Estimate your 2026 tax refund from W-2 box values. All 50 state progressive brackets, EITC, child tax credits, $40,400 SALT cap, and itemized deductions.

Related Resources

Savings Goal Calculator: How Much to Save Each Month

Read our guide

How to Calculate Tips: Complete Guide for US Restaurants

Read our guide

Debt Consolidation Calculator Guide: How to Combine Debts and Save

Read our guide

Sales Tax Calculator

Calculate sales tax on purchases

Investment Calculator

Project investment growth over time

Retirement Calculator

Plan your retirement savings

Salary Calculator

Convert between hourly and annual pay

More Finance Calculators

Explore tax, budgeting, and financial planning tools

View All Finance Calculators

Last Updated: Mar 26, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

UseCalcPro
FinanceHealthMath

© 2026 UseCalcPro