2026 Tax and Social Security Changes

 
 

2026 TAX UPDATES AND SOCIAL SECURITY CHANGES TO NOTE

As 2026 begins, Americans are facing one of the most consequential years for both tax policy and Social Security benefits in recent memory. Whether you’re preparing your tax return, planning for retirement, or adjusting your household budget, understanding these changes now can help you make more informed financial choices.

 

Tax Law Changes in 2026

A major overhaul of the U.S. tax code commonly referred to as the One Big Beautiful Bill Act took effect, bringing sweeping modifications to individual tax rules. These changes are at the forefront of the 2026 tax season. One of the most talked-about features is the expansion of tax deductions and credits. For example:

  • A new senior deduction allows taxpayers aged 65 and over to subtract up to $6,000 for single filers and $12,000 for joint filers. This deduction starts to "phase out" with income above $75,000 for single filers and $150,000 for joint filers.

  • Other deductions include exemptions for certain types of income such as qualified overtime, tip income, and auto loan interest. Provisions that can substantially lower tax bills for workers who traditionally pay higher effective rates.

These tax law changes come alongside inflation-adjusted increases in the standard deduction and updates to the IRS withholding tables — meaning many taxpayers may see slightly higher take-home pay because less income is taxed at the top of each bracket. At the same time, state tax changes in several states could either lower or raise local tax burdens, so it’s important to check your own state rules before filing.

 

Social Security Changes in 2026

For Social Security beneficiaries, 2026 brings a range of adjustments, both straightforward and subtle. Most immediately noticeable is the Cost-of-Living Adjustment (COLA). In 2026, the Social Security Administration boosted benefits by about 2.8 percent. Although this increase helps cushion beneficiaries against inflation, rising Medicare Part B premiums and other healthcare costs may eat into some of that gain.

In addition, the wage base limit or the maximum amount of earnings subject to Social Security payroll tax, increased to $184,500 in 2026. Higher earners will pay more in Social Security taxes as a result, even though the tax rate itself remains unchanged. These payroll tax adjustments help fund the program and sustain benefits for future retirees.

WHERE TO GO FROM HERE

Taken together, the 2026 tax law and Social Security changes represent a meaningful shift in Americans’ financial landscapes. Taxpayers should prepare by reviewing their withholdings, considering how new deductions apply to their situation, and evaluating how Social Security adjustments affect retirement income.

With these changes, financial planning has never been more important, but with the right knowledge, 2026 could also present new opportunities to save money towards securing your retirement future. To see how Cornerstone can help you with financial planning and how these changes may impact you, call our office today at (775)853-9033 or click here.

Based in Reno, NV, Cornerstone is for individuals and families looking to grow wealth, protect and preserve their life savings, and plan for the distribution of their estate in a tax-efficient manner through a tailored strategy. Schedule a time to discuss your financial goals with us.

©2025 Prime Capital Financial. The views and information contained herein are (1) for general educational or informational purposes only, (2) are not to be taken as a recommendation to buy or sell any investment, and (3) should not be construed or acted upon as investment or tax advice. The information contained herein was obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness.
This information does not constitute legal advice. Prime Capital Financial and its associates do not provide legal advice. Individuals should consult with an attorney regarding the applicability of this information for their situations.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. Tax planning and preparation services are offered through Prime Capital Tax Advisory. PCIA: 6201 College Blvd., Suite 150, Overland Park, KS 66211. PCIA doing business as Prime Capital Financial | Wealth | Retirement | Wellness | Family Office | Tax Advisory

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