As 2026 begins, it’s a great time to get your tax plan in order. A new law known as the One Big Beautiful Bill Act (OBBBA) changed several tax rules and understanding them early can help you keep more money in your pocket this year.
Bigger Standard Deduction
Most people take the “standard deduction,” which reduces the amount of income you pay tax on. For 2026, this amount is higher than before.
- Single: about $16,000
- Married Filing Jointly: about $32,000
Because it’s higher, many people won’t need to itemize (list out deductions like mortgage interest or charity donations). For many households, this means simpler filing and potentially a lower tax bill.
Better Deductions for State & Local Taxes (SALT)
If you pay a lot in state income taxes or property taxes, especially if you live in a high-tax state, the law now allows you to deduct more of these taxes. The new limit is much higher than before. This could make itemizing worth it again for some people.
Helpful Changes for Small-Business Owners & Freelancers
If you run a small business or do freelance work, 2026 could be a good year for you.
- You can still deduct 20 percent of your business income, which can lower your tax bill a lot.
- You can also deduct 100 percent of the cost of new business equipment right away (instead of spreading it out over years). This includes items like computers, machinery, and certain software.
Bigger Gifts & Estate Planning Opportunities
The amount you can leave to family or give away during your lifetime before facing estate or gift taxes has gone up. If you’re thinking about transferring money or property to loved ones, this may be a good time to talk with an advisor about updating your plan.
These new tax rules can open the door to real savings, but the best approach depends on your personal situation: your income, where you live, your business activity, and your long-term goals. Starting the year with a quick check-in can help you take advantage of the opportunities available under the new law. Consider reaching out to your tax professional to review how these changes apply to you and to make sure you’re set up for a smooth and tax-smart year ahead.
Here’s to wishing you and your family a prosperous, healthy, and happy 2026!
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