Preparing for the 2026 filing season means navigating new inflation adjustments and the permanent changes made by the One Big Beautiful Bill Act (OBBBA). Knowing which numbers moved, and which deadlines still let you act, is the difference between a reactive return and a planned one.
How much is the standard deduction for 2026?
The standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly for the 2025 tax year, with further inflation indexing on 2026 returns. If your total itemized deductions (mortgage interest, state and local taxes, charitable contributions) fall below these thresholds, the standard deduction produces the lower tax bill.
The decision is worth re-running every year, especially after the OBBBA raised the state and local tax (SALT) deduction cap, paid off a mortgage, or after a high-medical-expense year can flip the calculation. Compare both methods before you file rather than defaulting to last year's choice. A licensed preparer running individual tax preparation will calculate it both ways automatically.
Did the 2026 tax brackets change under the OBBBA?
The OBBBA made the lower TCJA marginal rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) permanent rather than allowing them to expire after 2025. Bracket thresholds continue to widen each year for inflation, which prevents "bracket creep" when a cost-of-living raise would otherwise push real income into a higher rate.
For most middle-income earners, this means a slightly lower effective rate on the same real income compared to a pre-indexing baseline. The annual indexing is published by the IRS and applies to Form 1040 filings.
What is the 2026 business mileage rate?
The IRS standard mileage rate for business use is adjusted annually to reflect fuel, maintenance, and depreciation costs, and rose modestly for 2025 and 2026. Self-employed taxpayers and business owners who drive for work multiply business miles by the published rate instead of tracking actual vehicle expenses.
Use a mileage tracking app so your logs are contemporaneous and IRS-compliant, since reconstructed mileage records are a common audit weakness. The deduction flows through to Schedule C for sole proprietors and self-employed filers.
What are the 2026 401(k) and IRA contribution limits?
The 401(k) elective deferral limit is $23,500 (before catch-up contributions) and the IRA contribution limit is $7,500 for 2026. Maximizing these is one of the most effective ways to lower taxable income, dollar for dollar for pre-tax contributions.
Timing matters: IRA contributions for a tax year can be made up to the April 15 filing deadline, but 401(k) deferrals must be made through payroll by December 31. Coordinating retirement contributions with your overall plan is a core part of year-round tax planning.
Are energy and EV credits still available in 2026?
Residential clean energy credits (solar panels, heat pumps) and certain electric vehicle credits remained in effect for 2025 improvements, generally worth up to 30% of qualifying costs. The OBBBA accelerated the phase-out of several of these credits, so the placed-in-service date now determines eligibility more than ever.
If you made qualifying improvements, keep manufacturer certifications and receipts to substantiate the claim. Because the phase-out schedule shifted, confirm the current-year rules before assuming a credit carries over from a prior year.
What can I still do to lower my 2025 tax bill?
There is still time to affect your 2025 liability before you file. You can make prior-year traditional IRA and HSA contributions up to April 15, 2026, confirm that capital losses were harvested to offset gains, and verify that withholding plus estimated payments meet the safe harbor to avoid underpayment penalties.
Review your withholding on Form W-4 for the current year while you are at it, since most other levers close on December 31. A short pre-filing review often surfaces deductions and timing moves that a rushed return misses.
Have questions about how the 2026 tax law changes affect you? Contact TS CPA for a free consultation. We respond within the same day.