New Trump tax laws could help millions of Americans pay $0 in federal income tax. Who qualifies and how to take advantage for 2026

Similarly, 40% of households had a $0 federal tax bill in 2022, under the Biden administration. However, Trump’s tax cuts favor specific groups, which means some Americans may end up with a $0 tax bill for the first time in 2025 (2).

Here’s a closer look at who will come out ahead.

Who can eliminate their tax bill?

Trump’s One Big Beautiful Bill Act (OBBBA) specifically favors seniors, employees earning tips and overtime, and those with children.

Here’s an example: Casey and Riley earn a combined income of $100,000 and have two children under the age of 13. Their usual deductions allow them to lower their taxable income considerably, with $31,500 in standard deductions, $6,800 in 401(k) contributions, $6,800 for health insurance premiums, $1,260 for a Health Flexible Spending Account (FSA) and $3,000 for a Dependent Care Flexible Spending Account (DCFSA).

But the new bill adds another deduction to this list: overtime pay. Casey and Riley can deduct an additional $10,000 because of this.

After all deductions and subtractions from their total income, they net out at $40,640, leaving them with a $4,400 tax liability. However, Casey and Riley could also receive the maximum child tax credit of $2,200 per child, which is up from $2,000 last year. The combined tax credit of $4,400 would offset the amount they owe in taxes and leave them effectively with a $0 federal tax bill.

Similarly, a retired couple who are both 66 years old and earning a combined adjusted gross income of $96,700 could reduce their taxable income by $34,700 under the existing standard deduction. The OBBBA’s new seniors deduction, worth $6,000 each or $12,000 together, decreases their combined taxable income to $50,000 (3).

Because the remaining $50,000 is derived from capital gains and qualified dividends, it would be subject to a 0% tax rate (4). All in all, the senior couple could pay $0 in federal income tax.

These are just two examples of how some families can eliminate their total federal liability by taking advantage of all the deductions and tax credits available to them. White House National Economic Council Director Kevin Hassett told Fox News that he predicted the U.S. will “see the biggest tax refund season of all time” in 2026 (5).

That said, individuals or households with higher income levels likely won’t be able to bring their tax bill down to $0.

Get custom tax recommendations for the best return

High-income households can work with platforms like Range to further reduce their tax burden.

Range is a streamlined, cost-effective way to manage your entire financial life. They offer tax recommendations based on your prior year returns, and can evaluate your investment portfolios for tax loss harvesting opportunities, too.

Beyond taxes, Range also offers investment advisory services. While traditional advisors can charge fees from 0.5% to 2% of your total assets under management (AUM), or between $1,000 to over $3,000 for more comprehensive plans. Meanwhile, Range offers flat-fee pricing with 0% AUM fees.

That’s a fraction of what you could pay with a typical certified financial planner. You can even book a free demo with the Range team after answering a few quick questions about yourself and what you’re looking for from their experts.

If your net worth is below the thresholds required to work with Range, there are other advisors who might be better suited to find the best path for reducing your tax burden.

Work with a financial advisor

For instance, with Advisor.com, you can connect with a financial advisor suited to your needs based in your area. All of their advisors are pre-vetted fiduciaries, meaning that they have a legal obligation to act in your best interest.

After inputting your ZIP code to get matched with a nearby financial professional, you can set up a free call with no obligation to hire to make sure they’re a good fit for you.

Caveats to keep in mind

Although many Americans are expected to benefit from the new tax rules, there are several caveats to consider.

For instance, a $0 federal tax bill doesn’t necessarily mean your tax liability is nil. You could still face federal payroll taxes — like those that are automatically withheld from your paycheck — including Social Security and Medicare tax.

Then there’s state and local income taxes, as well as sales and property taxes, some of which could in turn rise to offset the federal tax cuts. According to the National Association of Counties, the OBBBA shifts the cost burden from the federal level to state and local levels, which means counties may have to either cut services or raise local taxes to offset the downstream impact (6).

For instance, Thomson Reuters reported that states including Illinois, Maryland, Nebraska and Oregon have publicly expressed that federal funding cuts to Medicare, Medicaid and SNAP will likely trigger budget shortfalls (7).

For example, in Colorado, a projected $1 billion shortfall has already triggered tax increases. It should also be noted that the Trump administration has cut income taxes while raising import taxes, more commonly known as tariffs. According to the Tax Policy Center, Trump’s tariff policies will likely raise families’ federal tax burden by an average of $2,100 in 2026 (8).

Tax-advantaged investments

Bottom line: The national tax code has been significantly overhauled, and a professional financial expert could help you estimate the total tax burden you and your family face this year — it’s likely to be different from what you’re used to.

And while you can’t predict how tax policies can change, you can make decisions around your wealth to help protect it.

Open a gold IRA for diversification and tax benefits

For instance, when you open a gold IRA, you can defer your tax bill until you withdraw during retirement. That means your investment can grow tax-free in the meantime.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.

Diversify with real estate and tap into depreciation

You can also protect your wealth by investing in real estate to better benefit from depreciation.