What to Watch for in 2026: A Tax Planning Guide

Possibly the most important part of this tax season is determining which parts of tax legislation have been maintained by the One Big Beautiful Bill Act (OBBBA) and which have not. Here are a few of the most important factors to consider when looking ahead to tax planning in 2026.

Download our 2026 tax planning guide, 2026 Important Financial Planning Numbers, now.

Have Clients Check Their Tax Brackets

In 2026, married couples filing jointly will see their standard deduction increase from $31,500 to $32,200. The single-person standard deduction will increase from $15,750 to $16,100, and the single head of household standard deduction will increase from $23,625 to $24,150. These increases in standard deductions paired with adjustments for inflation and the OBBBA fixing rates from the 2017 Tax Cuts and Jobs Act (TCJA) may result in your clients seeing lower rates of taxable income in 2026 than in previous years.  

Changes to Estate Planning in 2026

One major change brought about by the OBBBA legislation is the increase to estate tax credits. As stated by the IRS, “Estates of decedents who die during 2026 have a basic exclusion amount of $15,000,000, up from a total of $13,990,000 for estates of decedents who died in 2025.”¹

This is a meaningful increase for clients involved in estate planning in 2026.

Remember to Consider State and Local Tax Deductions

Last year, the future of state and local tax (SALT) deductions was uncertain. The TCJA had placed a $10,000 cap on such deductions, but the fate of the TCJA was uncertain. Now, we know that these provisions have been maintained and the cap has actually grown in 2026, leading to the potential for a greatly reduced tax bill for clients who may itemize their tax deductions to reduce taxable income.

Looking for more information on tax planning in 2026? Download our 2026 tax planning guide, 2026 Important Financial Planning Numbers, now!
 

More On Tax Planning

• Become a tax planning specialist with the TPCP^® program
• Need to know more about the OBBBA? Check out Episode 36 of Shares for a thorough breakdown
• Compare tax planning credentials in time for tax season