JMLINCE Tax ServicesSingle
$16,100Also applies to married individuals filing separately.
2026 Federal & California Tax Updates
What's New for 2026 Taxes?
Understand important tax changes for income earned during 2026, including federal deductions, standard deductions, business mileage, and California tax rules.
Tax year 2026: January 1 through December 31, 2026. Most individual returns for this tax year will be filed in 2027.
2026 Federal Standard Deduction
The federal standard deduction reduces taxable income for eligible taxpayers who do not itemize deductions.
Married Filing Jointly
$32,200For eligible married couples filing a joint return.
Head of Household
$24,150For taxpayers meeting IRS household requirements.
Additional amounts: Taxpayers age 65 or older,
or legally blind, may qualify for an additional standard
deduction. The amount depends on filing status and eligibility.
FEDERAL TAX INFORMATION
2026 Federal Income Tax Brackets
Federal income tax rates are progressive. Different portions of taxable income are taxed at different rates. Your highest bracket is not the rate applied to all your income.
2026 Marginal Tax Rates
Federal individual income tax
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,450 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $67,450 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,750 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,750 – $256,200 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,200 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Married filing separately: The tax brackets
generally use the same thresholds as single filers.
Source:
IRS Revenue Procedure 2025-32
New Federal Tax Deductions
Several federal deductions created by the Working Families Tax Cuts may be available for tax years 2025 through 2028. Each deduction has specific eligibility rules and limitations.
Qualified Tips
Up to $25,000Eligible workers may deduct qualified tips received in occupations that customarily and regularly received tips before 2025. Income phaseouts and reporting requirements apply.
IRS qualified tips informationQualified Overtime
Up to $12,500Eligible workers may deduct qualified overtime compensation. The maximum is $25,000 for joint filers. Generally, only the qualifying premium portion counts, not all overtime wages.
IRS overtime deduction informationAdditional Senior Deduction
Up to $6,000Eligible taxpayers age 65 or older may qualify for an additional federal deduction. The deduction is subject to modified adjusted gross income phaseouts.
IRS senior deduction informationQualified Vehicle Loan Interest
Up to $10,000Eligible taxpayers may deduct interest on certain loans for qualifying new personal-use vehicles. Vehicle, loan-origination, income, and other requirements apply. Lease payments do not qualify.
IRS vehicle loan interest information
Important: These deductions generally reduce
federal income subject to tax. They do not automatically
eliminate Social Security or Medicare taxes. Income phaseouts,
filing-status rules, and documentation requirements apply.
Review the current Schedule 1-A instructions.
2026 Business Mileage Rates
The IRS increased the optional business standard mileage rate effective July 1, 2026. Apply the rate corresponding to the date the business miles were driven.
First Half of 2026
$0.72572.5 cents per qualifying business mile.
Second Half of 2026
$0.7676 cents per qualifying business mile.
Maintain a Mileage Log
Every tripRecord dates, destinations, business purposes, and miles driven. Keep supporting records.
The standard mileage method is optional for eligible taxpayers.
Review vehicle-use, depreciation, and method-election rules
before choosing between standard mileage and actual expenses.
Self-Employed and Gig Workers
Independent contractors, rideshare drivers, delivery drivers, and freelancers should maintain accurate income and expense records throughout the year.
1099 and Other Income
Report business income from all sources, including platform payments, cash receipts, and other business revenue.
Ordinary and Necessary Costs
Track eligible supplies, advertising, insurance, software, professional fees, and other qualifying expenses.
Mileage or Actual Expenses
Keep mileage records and evaluate which eligible vehicle-expense method is appropriate.
Self-employed individuals may also owe self-employment tax and quarterly estimated tax payments.
Learn about Uber and gig worker taxes2026 California Tax Information
California has its own income tax brackets, deductions, credits, and conformity rules. Federal tax changes do not automatically apply to California returns.
Single / Married Filing Separately
$5,900California standard deduction.
Married Filing Jointly
$11,800California standard deduction.
Head of Household
$11,800California standard deduction.
Federal Return
Eligible taxpayers may claim certain deductions for qualified tips, overtime, senior taxpayers, and qualifying vehicle loan interest, subject to federal requirements.
California Return
California does not automatically adopt these federal deductions. California treatment must be determined under state law and current FTB guidance.
Important California difference: Do not assume
that a deduction allowed on the federal return is also allowed
on the California return. State adjustments may be required.
Check current FTB guidance when preparing the state return.
2026 Tax Planning Checklist
Organizing your records throughout the year can help reduce errors and make tax preparation easier.
Individuals and Families
- Keep W-2 and other income records.
- Track interest and dividend income.
- Review dependent eligibility.
- Maintain charitable contribution records.
- Review retirement contributions.
- Keep records supporting deductions and credits.
Businesses and Contractors
- Maintain accurate income and expense records.
- Reconcile business bank accounts.
- Track business vehicle mileage.
- Review depreciation and asset purchases.
- Make applicable estimated tax payments.
- Keep payroll and contractor records.
Official Tax Resources
Use official government resources for current tax rules, forms, instructions, and filing information.
Internal Revenue Service
Federal income tax information, forms, publications, and taxpayer guidance.
Visit IRS.govCalifornia Franchise Tax Board
California income tax forms, credits, filing information, and state tax guidance.
Visit FTB.ca.govIRS Tax Withholding Estimator
Review federal withholding and determine whether estimated tax payments may be needed.
Use IRS estimatorGet Ready for the 2026 Tax Season
Whether you are an employee, self-employed professional, or small business owner, JMLINCE Tax Services can help organize and prepare your tax information.
Individual Tax Returns
Assistance with W-2 income, dependents, investments, retirement, and other individual tax situations.
View Tax ServicesSelf-Employed and Business
Tax preparation for independent contractors, LLCs, partnerships, and corporations.
Business Tax ServicesStart Your Tax Preparation
Use the tax application or contact us to discuss your tax preparation needs.
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Contact UsTax Information Disclaimer
This page provides general educational information about federal and California tax provisions for tax year 2026. It is not legal, financial, or individualized tax advice. Eligibility for deductions, credits, and other tax benefits depends on applicable law, income limitations, filing status, and individual circumstances.
Tax laws and administrative guidance may change. Consult current IRS and California FTB instructions when preparing a tax return.
Last reviewed: November 3, 2026.