2026 Tax Law Changes: What You Need to Know

As we enter 2026, several tax provisions are set to change, potentially affecting your tax liability and planning strategies. Staying informed and adjusting your approach accordingly is crucial.

Contribution Limit Increases

The IRS has announced increased contribution limits for retirement accounts. 401(k) limits have increased, and IRA contribution limits have also been adjusted for inflation. Take advantage of these increases if your budget allows.

Standard Deduction Adjustments

The standard deduction has been adjusted for inflation, which may affect whether itemizing deductions makes sense for your situation. Review your deductions annually to optimize your tax strategy.

Estate Tax Exemption Changes

The estate tax exemption amount has been adjusted, but significant changes may be coming in future years. High net worth individuals should review their estate plans with this uncertainty in mind.

Planning Opportunities

Consider Roth conversions, tax-loss harvesting, and charitable giving strategies before year-end. Working with a tax professional can help you identify opportunities specific to your situation.