Tax Planning
Tax Planning in Light of OBBB & Anticipated 2026 Inflation Adjustments
With key inflation-driven changes from the One, Big, Beautiful Bill now in effect, strategic planning can help taxpayers minimize liabilities under the upcoming 2026 tax regime.
By NomadicTax Research Team • 5-8 min read • November 18, 2025
## What Taxpayers Need to Know for Tax Year 2026
The One, Big, Beautiful Bill (OBBBA), signed into law on July 4, 2025 (Public Law 119-21), brought substantial new adjustments and permanent changes affecting individual taxpayers. Among the most notable: the **standard deduction increases**, **marginal tax brackets**, **alternative minimum tax (AMT) thresholds**, and enhancements to credits like the **Employer-Provided Childcare Tax Credit**. ([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))
| Change | Tax Year 2025 | Tax Year 2026 |
|---|---|---|
| Standard Deduction (Married Filing Jointly) | $31,500 | **$32,200** ([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)) |
| For Single / Married Filing Separately | $15,750 → $16,100 ([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)) |
| Heads of Household | $23,625 → $24,150 ([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 Exemption & phase-out thresholds | Raised under indexing ([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)) |
| Enhanced childcare employer credit maximums | Up to $500,000 (or $600,000 for eligible small businesses) for TY-2026 ([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)) |
## Strategic Moves Before December 31, 2025
To take advantage of the changes and avoid surprises:
* **Accelerate or delay deductions and income.** If possible, shift deductible expenses into 2025 if your income will be higher in 2026 or vice versa.
* **Review eligibility under AMT**, particularly if you foresee waiting for AMT thresholds to rise or under-plan penalty exposure.
* **Utilize employer-provided benefits**, like childcare credits, before income or business changes push you into ineligibility or lower phase-in.
* **Plan major purchases**, especially of qualifying passenger vehicles, to align with OBBB rules around deductibility and reporting. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai))
## Examples and Calculations
*Example 1: Married couple with $200,000 in taxable income*
- Under TY-2025, taxable income up to $31,500 standard deduction would reduce taxable income. In TY-2026, that’s $32,200. You save tax on $700 of extra deduction—multiply by your marginal tax rate. If in 24% bracket, that’s ~$168 saved.
*Example 2: Employer-provided childcare credit*
- A small business qualifying under OBBB increases its maximum credit to **$600,000** in 2026. If able, restructure compensation or benefits to receive or match eligibility for these higher credits. ([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))
## Action Plan Checklist
- Estimate your 2026 taxable income and compare with 2025—use both tax rate tables. ([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))
- Plan vehicle purchases carefully: new vs used, origination date (> Dec 31, 2024), final assembly in the U.S., and ensure lenders can report interest under §6050AA. Also, transitional relief applies for 2025 reporting. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-transition-relief-for-2025-for-businesses-reporting-car-loan-interest-under-the-one-big-beautiful-bill?utm_source=openai))
- Review retirement plan contributions—higher inflation-adjusted limits may apply.
## Bottom Line
With many changes becoming **permanent** and others indexed for inflation under OBBB, taxpayers can no longer treat these as temporary perks. Proper tax planning for the rest of 2025 can set up lower tax burdens in 2026. Watch for finalized IRS guidance in late 2025 to avoid missteps.