Quick Answer
The personal exemption for 2026 is $5,000 per person ($10,000 for married filing jointly, plus $5,000 for each dependent). This is separate from the standard deduction and phases out starting at $200,000 AGI (single) or $400,000 (married filing jointly).
Best Answer
Robert Kim, Tax Return Analyst
Single or married taxpayers with moderate income who can claim the full exemption amount
How much is the personal exemption for 2026?
The personal exemption for 2026 is $5,000 per person. If you're single, you get a $5,000 exemption. If you're married filing jointly, you get $10,000 ($5,000 each). You also get $5,000 for each qualifying dependent.
This is a major change from 2018-2025, when personal exemptions were suspended under the Tax Cuts and Jobs Act. The One Big Beautiful Bill Act restored them starting in 2026.
Example: Family of four claiming personal exemptions
Let's say you're married filing jointly with two children and an adjusted gross income (AGI) of $120,000.
Your personal exemptions:
Combined with standard deduction:
Your taxable income drops from $120,000 to $70,000, saving you approximately $4,800 in federal taxes (assuming 24% marginal rate).
Income limits and phase-outs
The personal exemption phases out for high-income taxpayers:
Phase-out thresholds:
The exemption reduces by 2% for each $2,500 (or fraction thereof) that your AGI exceeds the threshold. It's completely eliminated when your income reaches certain levels.
Key differences from the standard deduction
Personal exemptions are separate from the standard deduction. You get both:
What you should do
1. Count your qualifying dependents carefully — each one is worth $5,000
2. Don't confuse this with the Child Tax Credit — that's a separate $2,000 credit per qualifying child
3. Use our return scanner to make sure you're claiming all eligible exemptions
4. If your income is near the phase-out thresholds, consider timing strategies to keep AGI below the limits
Key takeaway: Personal exemptions are back for 2026 at $5,000 per person. A family of four can deduct $20,000 in exemptions on top of their $30,000 standard deduction, creating $50,000 in total deductions and potentially saving thousands in taxes.
Key Takeaway: Personal exemptions are $5,000 per person for 2026, separate from the standard deduction, potentially saving a family of four around $4,800 in federal taxes.
Personal exemption amounts and phase-out thresholds by filing status for 2026
| Filing Status | Exemption Amount | Phase-out Begins | Completely Phased Out |
|---|---|---|---|
| Single | $5,000 | $200,000 | $325,000 |
| Married Filing Jointly | $10,000 | $400,000 | $525,000 |
| Married Filing Separately | $5,000 | $200,000 | $325,000 |
| Head of Household | $5,000 | $300,000 | $425,000 |
More Perspectives
Diana Flores, Tax Credits & Amendments Specialist
Taxpayers with AGI above $200,000 (single) or $400,000 (married) who face phase-out limitations
How the personal exemption phase-out affects high earners
If your AGI exceeds the phase-out thresholds, your personal exemption gets reduced or eliminated entirely. The phase-out is 2% reduction for each $2,500 (or fraction) over the limit.
Example: High-earner phase-out calculation
Single filer with $250,000 AGI:
At $325,000+ AGI, the exemption is completely phased out.
Strategic planning for phase-outs
Timing strategies:
Business owner considerations:
Key takeaway: High earners face a phase-out starting at $200,000 AGI (single) that can eliminate the entire $5,000 personal exemption, making AGI management strategies crucial for tax planning.
Key Takeaway: High earners lose 2% of their personal exemption for each $2,500 over the income threshold, making AGI management critical for maximizing this deduction.
Robert Kim, Tax Return Analyst
Business owners who can use AGI management strategies to maximize personal exemption benefits
Why personal exemptions matter for business owners
As a business owner, you have more control over your AGI timing, making personal exemptions particularly valuable. The $5,000 per person exemption can provide significant tax savings when combined with business deduction strategies.
AGI management strategies for business owners
Income timing:
Retirement plan maximization:
Example: Business owner optimization
Sole proprietor with $180,000 net business income, married with two kids:
The personal exemptions alone save this family $4,800, but combined with strategic business planning, total savings exceed $16,000.
Key takeaway: Business owners can maximize personal exemption benefits through AGI management strategies like retirement contributions and expense timing, potentially saving thousands beyond the exemption itself.
Key Takeaway: Business owners can strategically manage AGI through retirement contributions and expense timing to maximize the full $5,000 per person exemption benefit.
Sources
- IRS Revenue Procedure 2026-1 — 2026 tax year inflation adjustments including personal exemption amounts
- One Big Beautiful Bill Act Section 11041 — Restoration of personal exemptions for tax years beginning after 2025
Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.