Our 2025–2026 Tax Planner is designed to help individuals and businesses navigate significant tax law changes introduced by the One Big Beautiful Bill Act (OBBB) and optimize financial strategies. With many provisions of the Tax Cuts and Jobs Act now made permanent, this year’s planning environment offers both opportunities and challenges.
What’s New and Why It Matters
The OBBB brings sweeping changes that affect nearly every aspect of tax planning. It is important to understand these updates and how they can affect you as an individual and your business operations.
Expanded SALT Deduction: The state and local tax (SALT) deduction cap increases fourfold, offering meaningful relief for taxpayers in high-tax states. This change reintroduces opportunities for timing property tax payments to maximize deductions. However, high-income taxpayers may not benefit from the new rules.
Permanent Standard Deduction & Itemized Limits: The higher standard deduction remains in place, but beginning in 2026, top-bracket taxpayers will see a cap on the benefit of itemized deductions. If you haven’t already accelerated deductible expenses into 2025, now is the time to review your strategy for the new limits and adjust accordingly.
Charitable Giving Adjustments: Starting in 2026, itemized charitable deductions will be subject to a 0.5% AGI floor, meaning only contributions exceeding this threshold will qualify for deduction. This change could significantly impact taxpayers who make smaller, frequent donations, as those may no longer provide the same tax benefit. At the same time, non-itemizers will gain access to a new charitable deduction, opening the door for broader participation in tax-advantaged giving. Taxpayers should consider consolidating smaller gifts into larger contributions, exploring donor-advised funds or timing donations strategically to maximize deductibility under the new rules.
Estate Planning Certainty: With record-high estate and gift tax exemptions now made permanent, families and business owners have greater clarity for long-term wealth transfer strategies. However, permanence at the federal level doesn’t eliminate risk, future legislative changes and varying state-level estate taxes can still impact planning. Regularly reviewing estate plans helps to ensure alignment with financial goals and provides flexibility to adapt to evolving laws and family circumstances.
Business Tax Enhancements: The Section 199A Qualified Business Income (QBI) deduction and 100% bonus depreciation have been made permanent. Both are significant benefits for business owners looking to invest in growth. These provisions can reduce taxable income and accelerate cost recovery, making it an ideal time to review entity structure, capital investment plans and overall tax strategy.
New Deductions Through 2028: Several temporary provisions create short-term opportunities for eligible individuals. These include deductions for tipped income and overtime pay, which can reduce taxable wages for service and hourly workers. Additionally, a deduction for car loan interest offers relief for some taxpayers financing vehicle purchases. Enhanced benefits for senior taxpayers can also provide extra savings for those over a certain age threshold. Because these deductions are time-limited and set to expire after 2028, it’s important to identify eligibility early and incorporate them into annual tax planning strategy. Bundling these opportunities with other deductions can help maximize overall tax efficiency during this window.
Strategic Considerations
These changes underscore the importance of timing strategies, investment planning and retirement contributions. For example:
- Accelerating income or deductions based on anticipated tax bracket changes can yield substantial savings.
- Reviewing executive compensation plans, charitable giving strategies and estate plans now can help avoid surprises later.
- Businesses should evaluate entity structure, depreciation strategies and retirement plan options to optimize tax outcomes.
At Windham Brannon, tax planning is more than compliance, it’s about building strong relationships and helping you achieve your financial goals. Our team provides proactive guidance and innovative solutions designed to minimize tax liabilities, maximize cash flow and position you for success in a dynamic marketplace.
Ready to take the next step? Read our full 2025-26 Tax Planner and contact us today to start preparing with confidence.
