Tax Planning
Maximizing Your Tax Savings Under the New 2026 Inflation Adjustments
With the One Big Beautiful Bill in place, 2026 brings significant changes to deductions, tax brackets, and standard deductions—here’s how to leverage them.
By NomadicTax Research Team • 5-8 min read • November 17, 2025
## What’s New for Tax Year 2026
The **One Big Beautiful Bill (OBBB)**, enacted July 4, 2025, changes many tax-code features permanently or from 2026 onward. The IRS has published inflation adjustments for more than 60 tax provisions under Revenue Procedure 2025-32. Key changes include: higher standard deductions; adjusted marginal tax brackets; revised Alternative Minimum Tax (AMT) exemption thresholds. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
## Actionable Tax Planning Tactics
- **Reevaluate filing status**: The new standard deduction for married filing jointly for 2026 is $32,200; heads of households get $24,150; single filers and married filing separately receive $16,100. These increases might shift the balance between itemizing vs. taking the standard deduction. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
- **Income bunching strategies**: Because tax brackets have shifted upward (e.g. 35% kicks in at $256,225 for singles, $512,450 for married couples), aligning income and deductions can help manage bracket creep. If your income is near a bracket threshold, consider deferring income or accelerating deductible expenses. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
- **AMT planning**: AMT exemption for unmarried individuals rises to about $90,100, with phase-outs changed. If you usually get close to or hit AMT, these new thresholds may reduce risk—review your projections accordingly. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
- **Car loan interest & SALT cap changes**: Under OBBB, changes include expanded SALT deductions (up to $40,000 under certain income levels) and reporting requirements for car loan interest. Plan ahead if you expect to itemize. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai))
## Example Scenarios
| Situation | What Changed | What You Could Do |
|-----------|---------------|---------------------|
| Married couple, filing jointly, currently may itemize due to mortgage interest + state taxes | Standard deduction rises to $32,200 for 2026, SALT cap raised | Compare itemized total vs. higher standard deduction. If itemized is less, opt for standard deduction
| Single taxpayer with lots of overtime tips | New reporting requirements, but penalties for TY2025 are relaxed during transition period | Keep detailed records of tips and overtime; file accurately in 2026 when systems are updated ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-penalty-relief-for-tax-year-2025-for-information-reporting-on-tips-and-overtime-under-the-one-big-beautiful-bill?utm_source=openai)) |
## Key Dates & Implementation Notes
- Penalty relief is in effect for **tax year 2025** for information reporting related to cash tips and qualified overtime. Employers/payors won’t be penalized if they don’t yet meet full reporting requirements, provided they make a good-faith effort. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-penalty-relief-for-tax-year-2025-for-information-reporting-on-tips-and-overtime-under-the-one-big-beautiful-bill?utm_source=openai))
- For forms like **W-2** and **1099**, updates reflecting OBBB changes are expected for 2026; they won’t be changed for 2025. ([irs.gov](https://www.irs.gov/newsroom/irs-announces-no-changes-to-individual-information-returns-or-withholding-tables-for-2025-under-the-one-big-beautiful-bill-act?utm_source=openai))
## Bottom Line for 2025 vs 2026
The rest of 2025 is effectively a **transition period**. Taxpayers should use this time to prepare for full compliance in 2026 but can take advantage of relaxed enforcement in certain areas. Key planning now can reduce surprises when reporting becomes mandatory and penalties resume.
**Author’s Advice:** Review your last year’s tax return with these changes in mind. Adjust withholding and estimated payments if bracket thresholds or standard deductions affect your expected tax liability. Work with your tax advisor to model what net income will look like after these new provisions.