Tax Planning

Planning Your Taxes for 2026 Under the One, Big, Beautiful Bill’s Inflation Adjustments

New inflation adjustments from the OBBB law are changing standard deductions, tax brackets, and more—planning early can mean saving thousands.

By NomadicTax Research Team • 5-8 min read • November 16, 2025

## Introduction The One, Big, Beautiful Bill (OBBB) isn’t just reshaping tax policy—it’s redefining numbers. The IRS has released *Revenue Procedure 2025-32*, which sets inflation adjustments for over 60 tax provisions for tax year 2026 (returns filed in 2027). Notably, many standard deductions, exemption amounts, and credits are increased. These changes give US taxpayers fresh opportunities for savings—if you strategize early. ([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)) ## Key Changes That Matter Most Here’s a snapshot of what’s shifting: - **Standard deductions** climb to $32,200 for married filing jointly; $16,100 for singles or married filing separately; and $24,150 for heads of household. ([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)) - **Marginal tax rate thresholds** are adjusted upward—everyone’s tax bracket cutoffs are higher. ([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 (Alternative Minimum Tax) exemption** and phase-out thresholds rise, giving more breathing room for high-income earners. ([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)) - **Estate tax exclusion** increases to $15,000,000 for estates dying in 2026 (up from ~$13,990,000 in 2025). ([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)) - Increased limits for credits like the EITC, qualified transportation fringe benefits, and health flexible spending accounts. ([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 Tips: How to Plan Now To make the most of these inflation adjustments, start applying these steps before you file your 2026 return: 1. **Estimate your taxable income for 2026.** If it’s near a bracket threshold, timing income or deductions could shift you into a lower bracket. For example, deferring self-employment income or accelerating qualified expenses might help. 2. **Maximize retirement account contributions.** Because credit and exemption phaseouts have higher thresholds, contributing more to 401(k), IRA, or SEP plans could reduce your taxable income more effectively. 3. **Reassess itemizing vs. standard deduction.** With standard deduction amounts rising, fewer taxpayers may benefit from itemizing unless you have large deductions (mortgage interest, property taxes, charitable giving). 4. **Review estate and gifting plans if relevant.** With the estate tax exclusion bumped up, many will see less exposure—this could be a window to restructure trusts or make large gifts. ## Examples - *Small business owner near a rate-bracket cutoff:* Suppose you’re married filing jointly, expect $215,000 taxable income in 2026 (just above the 24% bracket cutoff of $211,400). Delaying some income into early 2027 or doubling deductions could push you into 22%, saving thousands. - *High-net-worth individuals with gifting potential:* With the estate tax exclusion up to $15 million in 2026, making inter vivos gifts before year-end might reduce estate exposure or simplify inheritance planning. ## Potential Pitfalls - Be careful not to underwithhold. More income without adjusting your withholdings could lead to surprises, especially given the larger standard deductions and credit adjustments. - Changes in law beyond Oct 9, 2025 (the date of Revenue Procedure 2025-32) might tweak things further—stay alert to late-year guidance. ([irs.gov](https://www.irs.gov/irb/2025-45_IRB?utm_source=openai)) ## Conclusion The inflation adjustments under OBBB give taxpayers tools to reduce liability—whether via timing, contributions, or deductions. The earlier you review your tax position for 2026, the more options you’ll have. Use these increases smartly to plan your cash flow, savings, and ensuring you don’t pay more tax than necessary.