The IRS has published its inflation-adjusted figures for tax year 2026, and this year’s release carries extra weight because it folds in amendments from the One Big Beautiful Bill. Good 2026 tax planning starts with knowing where the thresholds landed, so you can make decisions in the months ahead rather than scrambling next spring. Here are the changes most likely to matter to small business owners and families.
Standard deduction and the everyday numbers
For 2026, the standard deduction rises to $16,100 for single filers and those married filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. These amounts shape the baseline for most returns and affect whether itemizing still makes sense for you. If you have been close to the itemizing threshold in recent years, 2026 is a good year to revisit that math with your accountant.
A significant jump for estate and gift planning
The estate tax exclusion climbs to $15 million per individual for 2026, up from roughly $13.99 million in 2025 — a meaningful increase for families thinking about succession, gifting, or transferring a business. The annual gift exclusion holds steady at $19,000 per recipient. For business owners weighing how and when to pass ownership to the next generation, the higher exclusion opens planning room that is worth acting on deliberately rather than at year end.
Credits that reward small business owners and small employers
The employer-provided childcare credit is enhanced for 2026, with a maximum of $500,000 — and up to $600,000 for an eligible small business. If you have considered supporting childcare for your team, the improved credit changes the cost-benefit picture. The qualified transportation fringe benefit also ticks up to $340 per month. Small adjustments like these add up across a full year of payroll and benefits decisions.
These figures reflect the numbers the IRS has released, but how they apply depends entirely on your specific situation — your entity type, income, and goals. Tax planning is most effective when it happens throughout the year, not in April, and the right move for one business can be the wrong one for another. Treat the numbers above as a starting point for a conversation, not a substitute for advice on your own return.
If you want to build a proactive plan around the 2026 figures — for your business, your family, or both — Tortolano & Company can help you put the pieces together. Call us at 603-501-7100 to get started.
—
Sources:
– IRS releases tax inflation adjustments for tax year 2026 (IR-2025-103): https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill