If you live in California and want to get a better handle on taxs — yes, taxes — here’s a plain-English guide to what’s changing for 2025 and 2026. We’ll walk through: the child tax credit (how much), how many kids qualify, the standard deduction (what it is, what it will be), and the new tax regime heading into 2026. And yes, we’ll keep it California-friendly and understandable.
1. What is the Child Tax Credit in 2025?
One big area many families focus on is the federal child tax credit (CTC). For tax year 2025 (which you’ll file in 2026) here’s what you need to know:
- The maximum credit is up to $2,200 per qualifying child.
- The refundable portion (the part you may get as a refund even if you owe little or no tax) is up to $1,700 per child.
- To qualify, the child must typically be under 17 at the end of the tax year, be a U.S. citizen/resident, live with you more than half the year, and you must satisfy income limits.
- Income phase-outs apply: For full credit your modified adjusted gross income (MAGI) must be below certain thresholds.
- For California residents: While this is a federal credit, your California state tax situation may also matter (the state may or may not have its own child credit). You’ll want to check state specifics.
- Important to note: The credit is not paid monthly as direct checks (as some pandemic-era expansions had done); it’s claimed on your tax return.
Why it matters
For many California families, a $2,200 credit per child can meaningfully reduce federal tax liability. If you’re eligible, this is a big plus when planning your budget.
2. What is the Standard Deduction for 2025?
Another key piece of taxs is the standard deduction — the fixed dollar amount you reduce your taxable income by if you do not itemize deductions. Here’s what changed for 2025:
Standard Deduction Amounts (Tax Year 2025)
- Single filers (or married filing separately): $15,750.
- Head of Household: $23,625.
- Married filing jointly: $31,500.
Additional Deductions
- If you’re age 65 or older (or blind), you may be eligible for an additional standard deduction on top of the basic amount.
- A new extra deduction applies to qualifying older adults (age 65+): an additional bonus deduction (for tax years 2025–2028) per eligible individual.
Standard Deduction for 2026 (for future planning)
- Single: $16,100.
- Married filing jointly: $32,200.
- Head of Household: $24,150.
Why this matters for California residents
When you’re living in California — where cost of living and incomes tend to be higher than many places — knowing your standard deduction helps you estimate taxable income.
If your itemized deductions (mortgage interest + property taxes + state income taxes + charitable gifts) are less than the standard deduction, it often makes sense to take the standard deduction.
3. What is the “new tax regime” for 2025-2026?
When people talk about a new tax regime, they mean broad changes to how taxes are computed: new provisions, adjusted thresholds, changes in credits or deductions. For 2025–2026, here are some key features:
What’s new or changing
- The standard deduction and child tax credit increases (as noted above) are part of new adjustments.
- The federal income tax brackets for 2026 are being adjusted for inflation — meaning you may need higher income before you move into a higher rate.
- The law known as the One Big Beautiful Bill Act (OBBBA) introduced new bonus deductions, particularly for older adults.
For California residents: While California state income tax is separate, you’ll need to consider how federal changes affect your overall tax strategy (federal deduction/Credit changes may shift how you itemize, how much state tax you deduct, etc.).
Because federal tax law is evolving, it’s wise to revisit your withholding, estimated tax payments, and tax-planning for the coming year. The federal government’s annual inflation-adjustments also change the game each year.
What this means for you
- You’ll likely see slightly higher amounts you can deduct (standard deduction) and slightly bigger credits (child tax credit) — good news.
- But also: Preparing your taxes requires awareness of new thresholds and rules, especially if you’ve recently changed job, got a raise (common in California), or changed your filing status.
- Consult a tax professional or use trusted tax software to incorporate 2025/2026 changes accurately.
4. Quick Round-Up of Your “What You Should Know” List
Here’s a table summarizing key numbers and questions for 2025-2026 for easy reference.
| Question | Answer |
|---|---|
| What’s the maximum child tax credit in 2025? | Up to $2,200 per qualifying child. |
| What’s the standard deduction for 2025 for a single filer? | $15,750. |
| What’s the standard deduction for 2025 for married filing jointly? | $31,500. |
| Is there a “new tax regime” forming in 2025-2026? | Yes — via law changes (OBBBA), inflation adjustments, and bonus deductions for seniors. |
| Will the standard deduction change in 2026? | Yes — e.g., single filers moved to $16,100 in 2026. |
5. What should California taxpayers do now?
If you live in California and you’re prepping for the 2025 tax year (taxes filed in 2026), here are actionable things to do:
- Update your withholding: With new standard deduction and credit amounts, your employer withholding might need adjustment.
- Estimate your taxable income: Use the updated standard deduction numbers to calculate your estimated federal taxable income.
- Check eligibility for child tax credit: If you have children under 17, make sure you meet the requirements (residency, SSNs, filing status, income threshold).
- Decide standard vs itemized deduction: If you live in California with property taxes, mortgage interest, state tax deductions, run the numbers: if your itemized deductions are less than ~$15,750 (single) you’ll likely take standard.
- Plan for California state taxes: California has its own tax rates and rules. But federal changes affect your overall “taxs” budget (what you owe, what you keep).
- Consider seniors or age-65+ planning: If you’re 65 or older, note the extra deductions that apply for your federal taxes — this may affect your “taxs” savings.
- Use a tax professional or trusted software: Because rules are changing (and will again for 2026), having expert help or software ensures you don’t miss something.
7. Final Thoughts
Navigating taxs may not be fun, but it does matter — especially here in California where incomes, costs, and tax stakes are higher than many regions. The key take-aways:
- The child tax credit in 2025 (up to $2,200 per child) is a meaningful benefit.
- The standard deduction amounts increased for 2025, so you’ve got bigger buffers before you pay tax.
- The tax regime is evolving — new laws, adjustments, senior bonus deductions, inflation-updates all matter.
- You should act early — now is the time to update withholding, evaluate deductions, confirm credits, especially if your life changed (job, home, children).
