Tax Planning
Tax Planning Strategies Under the One, Big, Beautiful Bill: US Inflation Adjustments for 2026
Understand the key inflation-driven law changes for tax year 2026 and how to plan deductions, credits, and income thresholds under the One, Big, Beautiful Bill.
By NomadicTax Research Team • 5-8 min read • March 28, 2026
## What Changed for Tax Year 2026
Several **inflation-based adjustments** were made under the One, Big, Beautiful Bill (OBBB), affecting standard deductions, tax brackets, credits, and exemptions. Knowing these changes is essential for tax planning. ([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 Inflation Adjustments
- Standard deduction increased to **$32,200 for married filing jointly**, $16,100 for single filers, 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))
- Top individual rate remains 37% for incomes over $640,600 (single) and $768,700 (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))
- Alternative Minimum Tax (AMT) exemption rises: single filers have $90,100 exemption, phased out at $500,000; joint filer thresholds adjusted 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))
- Estate and gift tax thresholds increase: estate tax basic exclusion = $15,000,000; gift annual exclusion remains mostly stable, but for non-citizen spouses it climbs to $194,000. ([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))
## Planning Tips & Examples
### 1. Adjust W-4 and Withholding
With higher standard deductions and raised AMT thresholds, many taxpayers may overwithhold. Review your W-4 allowances or your employer’s payroll to reduce withholding and increase cash flow.
### 2. Timing Big Expenses or Income
If you expect large deductible expenses (such as health care or charitable contributions), bunching them into tax year 2026 could help you exceed the raised standard deduction threshold and get greater benefit.
### 3. Estate Planning Updates
A married couple's estate now excludes up to $30 million if properly structured. For individuals with estates near the exclusion amount, this increases opportunities for lifetime gifting and trusts. Consult estate attorneys on strategies.
### 4. Credit Maximization
Credits like EITC have adjusted thresholds. For example, maximum Earned Income Tax Credit for three or more qualifying children is $8,231 in 2026 (up from $8,046). Review eligibility and income levels. ([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 Items Before Filing for 2025 Returns (due early-to-mid 2026)
- **Recalculate estimated taxes**, especially if you have income in bracket thresholds or deductions impacted by inflation adjustments.
- **Review qualified production property depreciation rules**, as IRS guidance on special depreciation allowance under OBBB was issued recently. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-february-2026?utm_source=openai))
- Take advantage of updated credits: adoption credit increased; employer childcare credit caps raised. ([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))
## Conclusion
OBBB’s inflation adjustments offer planning opportunities—reduced taxable income, boosted credits, better thresholds—all helping eligible taxpayers lower their tax burden. Early review and proactive strategy are key.