00:00Retirement Taxes in 2026 What Savers and Retirees Need to Know
00:04Retirement in 2026 does not mean freedom from taxes.
00:09With the One Big Beautiful Bill Act passed in July 2025,
00:13the U.S. has entered a post-TCJA era where many tax cuts were made permanent but adjusted for inflation.
00:21While rates stayed the same, income thresholds shifted, changing how much retirees and savers owe.
00:27Fixed income does not mean fixed taxes.
00:30And many retirees may feel the impact this year.
00:32The seven federal tax brackets remain intact, but income ranges increased by about 2.7% for 2026.
00:40The 10% bracket now tops out at $12,400 for single filers and $24,800 for married couples filing jointly.
00:51While the feared return to higher pre-2017 rates was avoided, bracket creep remains a risk,
00:57especially as RMDs and inflation-adjusted income push retirees into higher tiers.
01:03Social Security benefits are still taxable for many retirees.
01:08Individuals with combined income over $34,000 and couples over $44,000 may owe taxes on up to 85% of benefits.
01:17These thresholds remain unchanged despite inflation, meaning more retirees are caught each year.
01:24Meanwhile, the maximum taxable earnings rose to $184,500 in 2026.
01:32Taxpayers aged 65 and older now qualify for a new $6,000 deduction on top of the standard deduction.
01:39This bonus phases out for single filers over $75,000.
01:44The standard deduction also increased to $16,100 for singles and $32,200 for couples.
01:53Long-term investors benefit most in 2026.
01:57Stocks held four years qualify for a 75% exclusion, while five-year holdings receive a 100% capital gains exclusion.
02:05Short-term trading remains fully taxable.
02:09The SALT deduction cap increased to $40,000 for joint filers, restoring the value of itemizing for many in high-tax states.
02:18New Trump accounts for minors offer tax-advantaged growth, potentially providing retirees with a new legacy planning option.
02:26The 2026 Tax Landscape Rewards Planning
02:29While Social Security Taxes remain a trap, higher deductions, expanded SALT limits, and long-term investment incentives offer meaningful opportunities to reduce retirement tax burdens.
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