2026 Tax Year Newsletter
Key updates for the 2026 tax year, filed in 2027 — deadlines, brackets, credits and planning moves.
The 2026 tax year is one of the most significant in a decade — new incentives for business owners, meaningful savings for individuals, and fresh thresholds that quietly reshape what you owe. Below is what actually matters to your return, in plain English. Read the two minutes that could save you thousands.
Tax figures and deadlines are set by the IRS and can be revised. Always confirm every amount against the most recent IRS release (or ask our office) before you rely on it for a filing decision.
For our individual clients (Form 1040)
Your return is where planning pays off fastest. Here is the 2027 filing season, decoded — the dates that matter, the deduction you almost certainly get, and the bracket edges worth knowing before year-end decisions are made.
Key individual deadlines (2027 filing season)
- Employers send W-2s: February 1, 2027.
- Tax day (file & pay): April 15, 2027.
- Extension deadline (file only): October 15, 2027.
1. Standard deduction increases (tax year 2026)
The standard deduction has been adjusted upward for inflation.
- Married couples filing jointly: rises to $32,200.
- Heads of household: increases to $24,150.
- Single taxpayers and married individuals filing separately: now $16,100.
2. Marginal tax rates (tax year 2026)
The seven marginal rates are unchanged — but the income thresholds that trigger them are indexed annually, and those edges are where opportunities live. The table below shows the estimated 2026 thresholds at which each rate begins.
| Tax Rate | Single FilerTaxable income over | Married Filing JointlyTaxable income over |
|---|---|---|
| 37% | $629,900 | $755,900 |
| 35% | $251,200 | $503,500 |
| 32% | $197,500 | $394,900 |
| 24% | $105,700 | $211,400 |
| 22% | $49,400 | $98,900 |
| 12% | $12,400 | $24,700 |
| 10% | $0up to $12,400 | $0up to $24,700 |
| How to read this: each rate applies only to the income inside its own band — every dollar is taxed once, at its own rate. A single filer crosses into the 24% band at roughly $105,700 of taxable income, not $105,700 of salary. Moving up a bracket never taxes all of your income at the higher rate. Estimate pending IRS release | ||
Thresholds shown are our inflation-adjusted estimates pending the IRS release for tax year 2026. The IRS indexes these figures annually — ask our office or check the current IRS release for the exact published amounts.
3. Key credit and limit adjustments (tax year 2026)
- Child Tax Credit (CTC): the maximum credit remains $2,200 per qualifying child (indexed for inflation), with a refundable portion of up to $1,700 per child. Confirm the current year’s refundable cap.
- Earned Income Tax Credit (EITC): the maximum EITC amount for taxpayers with three or more qualifying children is $8,231.
- Saver’s Credit: AGI limits are indexed annually — confirm the current thresholds for your filing status before relying on this credit.
- Alternative Minimum Tax (AMT) exemption: exemption amounts are indexed for inflation — confirm the current published figures.
4. Benefit plan contribution limits (2026)
- Health Flexible Spending Arrangement (FSA): the maximum employee salary reduction contribution is $3,400. For plans allowing a carryover, the unused amount carried over is indexed — confirm the current cap.
- Qualified Transportation Fringe Benefit: the monthly exclusion limit for commuter highway vehicle transportation, transit passes and qualified parking is $340.
For our business clients (S-Corps & C-Corps)
If you own a corporation, 2026 hands you the most generous write-off environment in years. The question is no longer whether to invest in the business — it is whether you claim every dollar you are entitled to.
Key corporate tax changes for 2026
Recent legislation (the “One Big Beautiful Bill Act”) continues to reshape business taxation for the 2026 tax year. The most significant provisions include:
- Permanent 100% bonus depreciation: businesses can once again immediately expense 100% of the cost of qualified new investments.
- Immediate R&D expensing: the requirement to amortise R&D expenses over five years has been repealed — you can fully expense domestic R&D costs in the year they are incurred.
S-Corporation (Form 1120-S) deadlines
S-Corporations are “pass-through” entities. The business files Form 1120-S and you, the shareholder, receive a Schedule K-1 to use on your personal return.
- Main filing deadline: March 15, 2027.
- Extension deadline (Form 7004): September 15, 2027.
C-Corporation (Form 1120) deadlines
C-Corporations are separate tax-paying entities with a 21% flat tax rate.
- Main filing deadline: April 15, 2027.
- Extension deadline (Form 7004): October 15, 2027.
2027 corporate estimated tax deadlines
Corporations must make quarterly estimated tax payments. Note the Q4 deadline differs from the individual deadline.
- Q1: April 15, 2027
- Q2: June 15, 2027
- Q3: September 15, 2027
- Q4: December 15, 2027
5. Looking ahead to tax year 2027 (filed in 2028)
Inflation-adjusted figures for the 2027 tax year are typically published by the IRS in the autumn of 2026. Check back here, or ask our office, for the confirmed numbers once they are released.
6. Tax planning strategies for 2026
- Maximise retirement accounts: contribute to IRAs and 401(k)s.
- Utilise Health Savings Accounts (HSAs): contribute if you have a high-deductible health plan.
- Claim all eligible credits: including the Child Tax Credit and the Saver’s Credit.
- Deduct charitable contributions: keep records of every donation.
- Consider itemising deductions: if your total itemised deductions exceed the standard deduction.
- Review medical expenses: deduct unreimbursed medical expenses exceeding 7.5% of AGI.
- Leverage the home office deduction: if you work from home and it is your principal place of business.
Stay informed and prepared
Navigating tax changes can be challenging. Our team is here to help you understand these updates and how they may affect your situation. If you have questions or need assistance with tax preparation, do not hesitate to reach out.
Thank you for trusting us with your tax needs — we look forward to serving you.
Best regards,
The ACH Management Team
Next steps
This newsletter is general information, not professional advice for your specific situation. Reach out before acting on anything that affects your return.