Tax Strategy

These IRS Number Changes Could Affect Your Taxes in 2026

Small Business Tax Savings Podcast
Small Business Tax Savings Podcast•Apr 7, 2026

Why It Matters

Understanding the 2026 IRS adjustments lets business owners optimize deductions, avoid over‑paying taxes, and capture savings that directly boost cash flow.

Key Takeaways

  • •2026 standard deduction rises to $16,100 single, $32,200 married
  • •Tax brackets expand, marginal vs. effective rate distinction crucial
  • •Social Security wage cap increases to $184,500; Medicare tax persists
  • •Retirement contribution limits climb: IRA $7,500/$8,600, 401(k) $24,500 plus catch‑ups
  • •Mileage deduction jumps to 72.5¢ per mile; HSA limits also increase

Summary

The video breaks down the 2026 IRS‑adjusted tax numbers that matter most to small‑business owners, from the standard deduction to mileage rates, and explains how these inflation‑driven changes can be turned into planning opportunities.

Key figures include a $16,100 single and $32,200 married standard deduction, expanded tax brackets (e.g., the 22 % bracket now runs $50,400‑$105,000 for singles), a Social Security wage cap of $184,500, and a 72.5 ¢ per‑mile business mileage rate. Retirement limits rise to $7,500 ($8,600 catch‑up) for IRAs and $24,500 employee 401(k) contributions plus $8,000 catch‑up, while HSA caps reach $4,400 individual and $8,750 family.

Mike emphasizes that marginal rates differ from effective rates, noting that a bonus does not push all income into a higher bracket. He cites hiring children who earn under the $16,100 deduction as a tax‑free strategy, and illustrates a 10,000‑mile drive yielding a $7,250 deduction under the new mileage rate. Capital‑gain thresholds are also outlined: zero tax below $49,500 (single) or $98,900 (married), 15 % up to $545,000/$613,000, and 20 % beyond.

For owners, ignoring these updates can cost thousands; proactive adjustments to payroll, retirement contributions, and expense tracking can shave $5,000‑$30,000 off annual taxes. The speaker urges downloading the Tax Savings Podcast starter kit and the 2026 tax resource guide to implement the changes before year‑end.

Original Description

If you’re a business owner who wants to plan smarter for taxes in 2026 — this episode is for you.
Every year the IRS quietly updates key numbers. Tax brackets shift, retirement limits change, Social Security thresholds increase, and deduction limits adjust.
Most business owners don’t notice these changes until tax time… when they realize they missed planning opportunities.
In this episode, we break down the *most important IRS tax numbers for 2026* and how business owners can actually use them to plan smarter.
In this episode, we cover:
– Why annual IRS number changes matter for business owners
– The *2026 standard deduction* updates
– New *tax brackets* and how they affect your tax rate
– The *Social Security wage cap* and payroll planning
– Updated *retirement contribution limits*
– *HSA contribution limits* and tax advantages
– The *business mileage deduction* for 2026
– *Capital gains tax thresholds*
– The *Section 179 deduction* for equipment purchases
– Updated *gift and estate tax limits*
Tax planning isn’t about reacting in April — it’s about understanding the numbers and building a strategy around them.
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#taxstrategy #businesstaxes #taxplanning #smallbusinesstaxes #taxsavings

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