Tax Planning
Tax Planning Strategies Under the One, Big, Beautiful Bill: Maximizing 2026 Adjustments
The One, Big, Beautiful Bill introduces sweeping inflation-adjusted changes for 2026—from higher standard deductions to enhanced credits. Learn how to leverage them to reduce your tax burden.
By NomadicTax Research Team • 6 min read • November 19, 2025
## What’s New in 2026 Under OBBB
The **One, Big, Beautiful Bill (OBBB)** brings inflation adjustments across over 60 tax provisions for tax year 2026, significantly affecting individual, business, and estate-tax planning. Highlights include:
* **Standard Deduction increase**: $16,100 for single filers; $32,200 for married filing jointly. ([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 amounts raised**: Unmarried filers get $90,100; married jointly phase-out thresholds also increase. ([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 exclusion jumps**: Basic exclusion moves up to $15,000,000 from about $14 million 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))
* Other inflation increases: foreign earned income exclusion, gift exclusions, qualified transportation fringe benefit limits, health FSA limits, etc. ([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))
## How to Plan Effectively
To make the most of these changes, consider these tactics:
### 1. Revisit Withholding & Estimated Taxes
As deductions and tax brackets increase, your taxable income structure changes. **Use the IRS Tax Withholding Estimator** to update W-4 or estimated tax payments. Otherwise you might overpay or face underpayment penalties. ([eitc.irs.gov](https://www.eitc.irs.gov/newsroom/topics-in-the-news?utm_source=openai))
### 2. Time Big Decisions Wisely
If you're planning a large income-triggering transaction in 2025 vs. 2026 (e.g. selling property, taking distributions) consider deferring into 2026 to benefit from higher deductions or thresholds. Similarly, charitable donations or business expenses may yield better results with the new figures.
### 3. Max Out Retirement & Health Accounts
With higher limits in 2026:
* **401(k) contribution limit** rises to $24,500. ([irs.gov](https://www.irs.gov/zh-hans/newsroom?utm_source=openai))
* **HSA limits** increase to $4,400 (self-only) and $8,750 (family) coverage. ([irs.gov](https://www.irs.gov/irb/2025-21_IRB?utm_source=openai))
* Health plan deductibles and out-of-pocket ceilings also adjust upwards. ([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))
### 4. Estate Planning & Gift Giving
With a larger estate exclusion, many taxpayers may no longer need to use advanced gift or trust techniques to reduce taxation. But if your estate is near or above threshold, consult a professional now—estate tax rules can shift with future legislation.
### Example
Sarah, a married couple, files jointly. In 2025 their standard deduction was $31,500; in 2026 it rises to $32,200. If they had planned a large medical expense or charitable gift, delaying it until 2026 might push them deep into itemizing territory where it makes sense. Plus, their gift plan benefits more because exclusion is higher.
## Actionable Steps Before 2026
1. Gather last-year tax return and estimate income changes.
2. Use new limits (deductions, contributions) to adjust your budgets.
3. Consult on major actions—selling assets, changing filing status, etc.
4. Review employer-provided benefits like FSAs, transportation fringe benefits as thresholds have changed.
Use these changes strategically to reduce tax owed and ensure you’re not leaving money on the table.