Keep Your Pay Act

The Keep Your Pay Act (S. 4042) modifies the U.S. tax code to increase the standard deduction and adjust tax rates for high earners, while also expanding tax credits for workers and families. Beginning in 2026, the standard deduction will rise to $56,250 for single filers and $37,500 for married couples, while the top income tax rate for the highest earners will increase from 37% to 43%. The bill also permanently extends the earned income credit for individuals without qualifying children, expands eligibility for those in U.S. possessions like Puerto Rico, and creates a new monthly child tax credit of up to $300 per child with advance payments starting immediately upon enactment. Additionally, a new $500 credit is established for certain other dependents not covered by the child tax credit.