The One Big Beautiful Bill Act, signed into law on July 4, 2025, is already changing 2026 tax planning for individuals.

A few 2026 items taxpayers should have on their radar:

✅ Higher standard deduction For 2026, the standard deduction is:

✅ New individual deductions

The IRS highlights four major individual provisions under OBBBA:

• Deduction for seniors
• “No tax on tips”
• “No tax on overtime”
• “No tax on car loan interest”

These new deductions are claimed on Schedule 1-A, and they are available whether or not a taxpayer itemizes.

✅ Car loan interest deduction

Individuals may deduct up to $10,000 of qualified passenger vehicle loan interest annually for tax years 2025 through 2028. Lease payments do not qualify.

✅ HSA expansion

Beginning January 1, 2026, bronze and catastrophic health plans are treated as HSA-compatible. Telehealth and remote care services can also be received before meeting the high-deductible health plan deductible without losing HSA eligibility.

✅ Clean vehicle credit sunset

The New Clean Vehicle Credit, Used Clean Vehicle Credit, and Qualified Commercial Clean Vehicle Credit are not allowed for vehicles acquired after September 30, 2025.

The takeaway: 2026 tax planning should start before year-end 2025 filing is finished. With new deductions, new documentation requirements, and credit expirations, taxpayers should be reviewing payroll records, tip logs, overtime records, auto loan interest statements, and health plan eligibility now.