December 17, 2025
WASHINGTON — A major tax bill signed into law on July 4, 2025, by President Donald Trump guarantees that single filers will continue to benefit from an elevated standard deduction beyond this year. The One Big Beautiful Bill Act (Public Law 119-21) was narrowly approved by Congress along party lines – passing the Senate 51–50 on July 1 and the House 218–214 on July 3 – before Trump’s signature enacted it on Independence Day. This legislative action makes permanent the higher standard deduction originally introduced in 2018 under the Tax Cuts and Jobs Act (TCJA), averting its scheduled expiration at the end of 2025.
Higher Standard Deduction Now Permanent
Prior to the new law, the larger standard deduction for individuals was set to expire after the 2025 tax year. Without an extension, the standard deduction in 2026 would have reverted to pre-TCJA levels – roughly half of its current value for single tax payers. The One Big Beautiful Bill Act stopped that from happening by permanently extending the inflated deduction amount. In fact, the law slightly boosted the deduction for 2025, increasing the standard write-off to $15,750 for single filers (about $750 above what it would have been). This one-time enhancement establishes a higher baseline that will carry forward. Crucially, the expanded deduction will not drop off in 2026, as it would have under prior law – providing long-term certainty for taxpayers who take the standard deduction.
2025 and 2026 Deduction Amounts
For the 2025 tax year, a single filer can claim a $15,750 standard deduction on their federal income tax return. That amount rises to $16,100 for 2026 reflecting the annual inflation adjustment built into the tax code. (Married couples filing jointly will have a $31,500 deduction in 2025, increasing to $32,200 in 2026, and heads of household can claim $23,625 in 2025 and $24,150 in 2026 under the same adjustments.) These figures will continue to be indexed for inflation each year, so the value of the standard deduction will keep pace with rising prices going forward. By cementing the higher amounts into law, the bill ensures single taxpayers won’t see their standard deduction suddenly slashed after 2025, but instead will see it gradually grow over time with inflation.
Averting a 2026 Tax Hike for Single Filers
Had Congress not acted, the end of 2025 would have brought a dramatic cut to the standard deduction for individuals. Tax experts note the deduction was set to “revert to its lower pre-TCJA level in 2026, which would have amounted to a roughly 50% cut” for single filers. In practical terms, a single taxpayer’s deduction would have dropped from the mid-$15,000 range in 2025 to around half that amount in 2026, exposing significantly more of their income to taxation. Such a reversion would have effectively raised taxes on almost all individual filers starting in 2026. The new law prevents this across-the-board tax hike, sparing millions of single taxpayers from higher taxable income and higher tax bills. By locking in the TCJA’s more generous provisions, the Act guarantees that single filers keep the full benefit of the larger deduction instead of losing it overnight.
Why the Permanent Deduction Matters
The permanence of the expanded standard deduction is a meaningful win for single taxpayers. It allows individuals to shield a substantial portion of income from federal tax each year, reducing their overall tax burden. Most U.S. taxpayers – nearly 90% of filers – now claim the standard deduction rather than itemizing, and single filers in particular often rely on it to minimize taxes. Making the higher deduction permanent therefore provides ongoing tax relief and simplicity for the vast majority of single filers. They can continue to avoid the complexity of itemizing deductions in many cases, as the large standard deduction often exceeds any itemized totals. Just as importantly, single taxpayers now have certainty in planning their finances: they will not face an abrupt drop in their deduction (and a corresponding jump in taxable income) in 2026. Lawmakers and analysts emphasize that without this change, single filers would have been hit with a significant tax increase next year. Instead, the current standard deduction levels – $15,750 and rising – are here to stay, ensuring continuity and sustained tax savings for individuals moving forward.
Sources: The White House; U.S. Congress; IRS; Tax Policy Center; Charles Schwab Center for Financial Research