A new year means updated numbers for your tax strategy. Understanding the 2026 business tax figures is crucial for accurate planning and compliance. Below is a clear breakdown of key limits and thresholds that affect businesses this year.
Depreciation-Related Tax Breaks
- Bonus depreciation: 100%
- Section 179 expensing limit: $2.56 million
- Section 179 phaseout threshold: $4.09 million
Qualified Retirement Plan Limits
- 401(k), 403(b), and 457 plan deferrals: $24,500
- Catch-up contributions (age 50+): $8,000
- Additional catch-up (ages 60–63): $3,250
- SIMPLE deferrals: $17,000
- SIMPLE catch-up (age 50+): $4,000
- Additional SIMPLE catch-up (ages 60–63): $1,250
- Defined contribution plan limit: $72,000
- Defined benefit annual limit: $290,000
- Highly compensated employee threshold: $160,000
- Key employee compensation in top-heavy plan: $235,000
- SEP contribution trigger: $800
Other Benefits Limits
- HSA contributions: $4,400 (individual), $8,750 (family)
- Health FSA contributions: $3,400
- Health FSA rollover: $680
- Child and dependent care FSA: $7,500
- Employer contributions to Trump account: $2,500
- Monthly commuter/transit pass: $340
- Monthly qualified parking: $340
Miscellaneous Business-Related Limits
- Section 199A income range: $201,750 – $276,750 (double for joint filers)
- Excess business loss limitation: $256,000 (double for joint filers)
- Cash method of accounting limit: $32 million
Planning for 2026
Tax rules can be complex, and exceptions may apply. Our tax team can help you integrate these 2026 business tax figures into a proactive tax strategy.
Next Steps:
- Review your depreciation and retirement contributions
- Adjust benefits and compensation plans
- Contact us for personalized tax planning