2026 laws that could impact your wallet

Here's what to know about laws that could impact your wallet in 2026:

Tax refunds

What they're saying: Treasury Secretary Scott Bessent told NBC10 Philadelphia that Americans are going to be getting "very large refunds in the first quarter."

• "I think we're going to see $100 [billion]-$150 billion of refunds, which could be between $1,000 and $2,000 per household."

Yes, but: The IRS did not adjust withholding tables until after the OBBBA passed, meaning there will be higher-than-normal refunds.

• Workers "generally continued to withhold more taxes from their paychecks than the new law required," according to the Tax Foundation.
• "As a result, instead of gradually receiving the benefit of the tax cuts through higher take-home pay during the year, most taxpayers will receive it all at once when they file their returns."

Tax deduction for seniors

The OBBBA also includes a new $6,000 additional deduction that will apply to the 2025-2028 tax years for those 65 years or older.

• Those making less than $75,000 a year will be eligible (or $150,000 for couples filing jointly).
• Seniors making more than that would benefit from a decreasing deduction up to $175,000 a year ($250,000 for couples).

No tax on tips

Tipped workers won't pay federal income tax on their tips, starting with the 2025 tax year.

• The maximum annual deduction is $25,000, per the IRS.
• Workers must still report their tips for Social Security and Medicare purposes, however.

SALT cap increases

The OBBBA increases the state and local tax deduction (SALT) from $10,000 to $40,000 ($20,000 for married filing separately) for the 2025 tax year.

• It also increases the deduction to $40,400 for 2026, then an additional 1% every year until 2029, eventually returning to $10,000 in 2030 ($5,000 for married filing separately) .
• The deduction phases down for those earning more than $500,000 ($505,000 for 2026), and reverts to $10,000 for taxpayers with incomes of over $600,000 that are married filing jointly.

Between the lines: This allows wealthy people in states and cities with high taxes to claim larger federal reductions.

Gambling laws

The OBBBA puts the amount gamblers can deduct from their winnings equal to 90% of their losses for a given tax year.

• This means that a better who wins $100,000 but loses $100,000 would have to pay taxes on $10,000.

Context: Previously, gamblers could deduct all their losses from their declared income.

• "There could be scenarios where folks have a tax liability that matches or exceeds the amount that they earn," Garrett Watson, director of policy analysis at the Tax Foundation, told Axios in July.

Of note: Several states made changes to their own gambling laws that kick off in 2026.

Charitable giving

Taxpayers who itemize their deductions can receive deductions from charitable donations.

• Beginning the 2026 tax year, the OBBBA allows those who take the standard deduction to deduct up to $1,000 (single) or $2,000 (jointly).
• "Many people give at least some things during a year that could qualify," Watson said.
• "They can take that and then take that deduction from their taxes and it reduces their taxable income, reduces their tax liability at the end of the day. "

Estate planning

The OBBBA is "a boon for estate planning," according to Merrill Lynch.

• Starting in 2026, estates of those who die have a basic exclusion amount of $15,000,000, up from $13,990,000.

Car loan interest deduction

For 2025 through 2028, the OBBBA allows taxpayers to deduct interest paid on a loan used to purchase an eligible vehicle.

• Some taxpayers could deduct up to $10,000 of annual interest on new auto loans.

Reality check: Jonathan Smoke, chief economist at market research firm Cox Automotive, downplayed the deduction in an earnings call in June.

• He said a new loan would see roughly $500 in savings with "the interest payment on an average loan being closer to $3,000 in interest in a calendar year and declining over time."
• "When you factor in what that really means to your taxes of taking the credit, it essentially is not even what a single monthly payment turns out to be."

(Disclosure: Cox Automotive is owned by Cox Enterprises, which also owns Axios.)

Trump accounts

Parents or guardians of eligible children, employers, and "others" can start contributing to "Trump accounts" starting July 4, 2026.

• Children who are U.S. citizens born between 2025 and 2028 will be eligible for $1,000 in seed money from the U.S. Treasury.
• Kids born before 2025 can hold accounts, but they aren't eligible for the seed money from the Treasury.

What we're watching: Billionaires have donated money that will go to $250 in seed money for older children and employers have begun to announce contribution matches for their employees.

Rising costs

The OBBBA also includes several policies that could cause financial headaches for Americans already feeling pessimistic about the economy.

• That includes cuts to Medicaid and SNAP, in addition to stricter work requirements for both.
• The bill also phases out tax credits for solar and wind projects — meaning that development will slow and consumers will face higher prices.

The Trump administration is also increasing the financial strain for many with student debt after ending a five-year repayment pause.

• The Department of Education announced recently that it will forcibly seize pay from borrowers who are in default starting the week of Jan. 7.

Additionally, the OBBBA reduces the number of repayment plans from 5 to 2.

By the numbers: TransUnion reported that 29% of borrowers were delinquent on their loans in June.

• About 42.7 million borrowers owe more than $1.6 trillion in federal student loans, per the Education Department.