02/16/2026
New credits and deductions.
Qualified Tip Income Deduction
Eligible workers in designated occupations may deduct up to $25,000 of qualified tip income.
Income limits apply, reducing or eliminating the deduction for higher earners.
Overtime Pay Deduction
Taxpayers may deduct the portion of overtime pay that exceeds their regular hourly rate.
Maximum deduction:
$12,500 for single filers
$25,000 for married couples filing jointly
This deduction follows the same income phaseout rules as the tip income deduction.
Auto Loan Interest Deduction
Taxpayers may deduct up to $10,000 of interest paid on loans for new, U.S.-assembled personal vehicles.
Eligibility is subject to income thresholds.
Expanded SALT Deduction
The State and Local Tax (SALT) deduction cap is temporarily increased to $40,000 for married couples filing jointly (lower limits apply to other filers).
The expanded limit is subject to income-based phaseouts.