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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 ($)
Tax under OBBBA= Tax computed using current TCJA/OBBBA rates ($)

2026 Tax Reform: What OBBBA Means for Your Wallet

The One Big Beautiful Bill Act (OBBBA) made the 2017 Tax Cuts and Jobs Act permanent, preventing a significant tax increase for most Americans starting in 2026. Without this legislation, tax rates would have reverted to higher pre-2018 levels and the standard deduction would have been nearly halved.

The biggest changes preserved by OBBBA include: lower tax bracket rates (12% instead of 15%, 22% instead of 25%, 24% instead of 28%), a nearly doubled standard deduction ($16,100 vs $8,300 for single filers), and the $2,000 child tax credit (vs $1,000 under pre-TCJA rules).

This calculator shows your exact savings by computing your tax under both scenarios — the current OBBBA rates and what you would have paid if the TCJA had expired. Enter your filing status, income, and number of dependents to see your personalized comparison.

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Last Updated: Mar 9, 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.

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