For individuals

1) Your “baseline” tax calculation got refreshed

Standard deduction got bigger (again).
Tax year 2025 standard deduction: $31,500 MFJ; $15,750 single/MFS; $23,625 HOH.
Tax year 2026 standard deduction: $32,200 MFJ; $16,100 single/MFS; $24,150 HOH.

Individual rate structure continues into 2026.
The IRS has published 2026 bracket thresholds (including the top bracket threshold of $640,600 single and $768,700 MFJ).

Planning angle: This sounds boring, but it drives everything: Roth conversions, capital gains harvesting, IRA distributions, bonus timing, and whether deductions are actually worth chasing.

2) The senior deduction is real money (and temporary)

If you are age 65 or older, there is a temporary $6,000 deduction for eligible taxpayers (and for spouses too if filing jointly), available 2025 through 2028. It phases down based on modified AGI above $75,000 single and $150,000 MFJ.

Planning angle: If you are right around the phaseout range, timing income can matter more than usual (Roth conversions, capital gains, year-end bonuses, IRA distributions). This is one of those “small tweak, big effect” provisions.

3) Child tax credit got larger, and the SSN rules got tighter

The maximum child tax credit increases to $2,200 per child (indexed for inflation), and TCJA-era rules are made permanent, including higher phaseout thresholds. The law also adds an SSN requirement for the taxpayer (or spouse on a joint return) in addition to the child.

Planning angle: If you have dependents and any question about SSN work authorization status, do not wait until filing season to discover you have a documentation problem.

4) SALT got less painful (but it is not unlimited)

The SALT deduction cap for individuals is increased to $40,000 for 2025, with an annual adjustment for later years through 2029, and generally resets to $10,000 in 2030. There is also an income-based reduction mechanism beginning above certain income levels.

Planning angle: If you itemize, this can bring “classic” planning back into play: timing property tax payments, timing state estimates, and evaluating whether your pass-through entity tax (PTET) strategy still does what you think it does. Also, higher SALT does not automatically mean itemizing wins; the standard deduction is also bigger now.

5) New deductions: tips, overtime, and car-loan interest (2025–2028)

These are income tax deductions, not a magic wand that makes income disappear from every other tax system.

Qualified tip income deduction (temporary)
A new deduction applies for qualified tip income, with a maximum and an income phaseout, generally available 2025–2028.

Qualified overtime deduction (temporary)
A new deduction applies for qualified overtime compensation, also generally 2025–2028, with caps and income phaseouts.

Car loan interest deduction (temporary)
There is a deduction for up to $10,000 of qualified passenger vehicle loan interest for interest paid on debt incurred 2025–2028 to purchase a passenger vehicle, with an income phaseout. The vehicle must meet the program’s eligibility rules, including a final assembly requirement. VIN required on the return when claiming the deduction

Planning angle: If you might qualify, set yourself up now: clean documentation, correct withholding, and payroll reporting that matches reality. These provisions are the kind that get disallowed for sloppy substantiation.

6) Charitable giving rules changed, in both directions

A charitable deduction for non-itemizers returns and is expanded beginning 2026 (subject to the statute’s details). Meanwhile, charitable deductions for itemizers face a new floor, effectively requiring charitable contributions to exceed a threshold before they produce a tax benefit.

Planning angle: This rewards strategy. If you are a consistent giver, “bunching” donations into one year and using a donor-advised fund can still be powerful, but the new floors and limits mean you want to model the results rather than assume the old playbook still wins.

7) Clean energy credits: the clock is now very loud

If you are thinking about energy projects, the effective dates matter.

Clean vehicle credits (new, used, and commercial) are not available for vehicles acquired after Sept. 30, 2025. For some transactions, a binding written contract and timing of payments can affect the outcome.

Home energy credits (25C and 25D) generally end after Dec. 31, 2025.

Planning angle: If you are going to do it, do it right, and do it on time. For vehicles, “acquired” can be a trap word. For home energy, “placed in service” and “expenditures made” are not always the same moment in real life.

8) Estate and gift planning got a bigger runway for 2026

The basic exclusion amount for estate tax is $15,000,000 for 2026.

Planning angle: If you were waiting for clarity before making large gifts, this is clarity. It does not mean everyone should gift $15 million, but it does mean advanced strategies (SLATs, GRATs, family limited structures, business succession) are worth revisiting with updated numbers.

9) Disaster tax relief: more than just “extra time to file”

Two recent laws matter here:

• Federal Disaster Tax Relief Act of 2023 (enacted Dec. 12, 2024) includes targeted relief tied to certain disasters and disaster-related payments.
• Filing Relief for Natural Disasters Act (signed July 24, 2025) updates the rules for postponing certain deadlines by reason of disaster for declarations made after enactment.

Planning angle: Disaster provisions are detail-heavy and very fact-specific. If you are in an affected area or received disaster-related payments, treat it as a separate planning conversation, not a footnote.

For businesses

1) 100% bonus depreciation is back (and it changes equipment math fast)

The law provides 100% bonus depreciation for qualifying property acquired and placed in service after Jan. 19, 2025.

Planning angle: This can turn a “maybe next year” purchase into a legitimate 2025 planning move. It also changes how cost segregation studies and buildout projects pencil out. Bonus depreciation is not automatically the best answer, but it is back on the menu.

2) Section 179 got bigger, too

The section 179 expensing limits are permanently increased (with indexing after 2025), and the changes apply to property placed in service after Dec. 31, 2024.

Planning angle: Section 179 and bonus depreciation can look similar on paper but behave differently with losses, income limits, and state conformity. You want to coordinate this with your projected taxable income and bank covenants.

3) Domestic R&D expensing is restored (and the cleanup rules matter)

Domestic research and experimental expenditures can again be expensed, reversing the prior amortization requirement for domestic R&D in many cases. There are also retroactive relief rules for some small businesses and catch-up options for others.

Planning angle: If you have been capitalizing and amortizing R&D, there may be method change opportunities or amended return considerations. This is one of the highest ROI areas to review, because it affects multiple years and may touch your financial statements.

4) Business interest limitation (163(j)) becomes less restrictive again

For tax years beginning after Dec. 31, 2024, the law allows addbacks for depreciation, amortization, or depletion when calculating adjusted taxable income for 163(j). Additional 163(j) changes begin after Dec. 31, 2025, including rules around capitalized interest and certain international inclusions.

Planning angle: If you are leveraged, refinancing, or expanding, this can change after-tax borrowing costs. It is also a reminder to keep your entity structure, elections, and capitalization policies clean, because 163(j) is where “technically right” matters.

5) Pass-through owners: QBI rules are still a planning centerpiece for 2025, and change for 2026

The QBI deduction framework continues to be central through 2025, and then changes beginning for tax years starting after Dec. 31, 2025, including the addition of a minimum deduction concept and a minimum QBI requirement.

Planning angle: If your income fluctuates or you are near phaseouts, 2025 and 2026 can produce different outcomes even with similar earnings. This is where proactive entity compensation planning and clean bookkeeping pays off.

6) Qualified Small Business Stock (QSBS) got a serious upgrade

The law changes QSBS to a tiered system: stock sold after 3 years can qualify for a 50% exclusion, after 4 years a 75% exclusion, and after 5 or more years a 100% exclusion. It also raises key limits (including the per-issuer gain exclusion and the asset test).

Planning angle: If you are raising capital, restructuring, or selling a C corp business, QSBS eligibility should be an agenda item, not an afterthought. This is planning you do before the ink dries, not after the exit LOI.

7) 1099-K reporting threshold reverted (but taxes did not disappear)

The law resets third-party settlement organization reporting to the pre-2021 style threshold: generally more than $20,000 and at least 200 transactions.

Planning angle: This is paperwork relief, not tax relief. Income is still taxable even if a 1099-K is not issued. Businesses that rely on platform income should keep strong records and avoid the “no form, no tax” myth.

8) Opportunity Zones and rural investment incentives: bigger and more permanent

The law expands Opportunity Zones and creates related rural investment incentives, with new reporting and penalty structures.

Planning angle: If you have significant capital gains, real estate projects, or community development deals, the Opportunity Zone analysis should be refreshed under the new framework. Do not assume your 2023 pitch deck still matches 2026 reality.

9) Employer credits and people-cost planning

The employer-provided childcare credit is expanded for tax year 2026, including higher maximums and special rules for eligible small businesses.

Planning angle: This is a classic example of “tax meets HR meets retention.” If you are already spending money on benefits, you may be able to spend it in a more tax-efficient way.