The start of a new year brings updated tax-related figures that businesses should keep in mind. Below is a summary of the key numbers for 2026. Note that exceptions, special rules, or additional limits may apply.
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 contributions (ages 60–63): $3,250
- SIMPLE deferrals: $17,000
- SIMPLE catch-up (age 50+): $4,000
- SIMPLE additional catch-up (ages 60–63): $1,250
- Contributions to defined contribution plans: $72,000
- Annual benefit limit for defined benefit plans: $290,000
- Highly compensated employee threshold: $160,000
- Key employee (officer) threshold in top-heavy plans: $235,000
- SEP contribution trigger: $800
Other Benefits Limits
- Health Savings Account (HSA): $4,400 individual / $8,750 family
- Health Flexible Spending Account (FSA): $3,400
- Health FSA rollover: $680
- Child and dependent care FSA: $7,500
- Employer contributions to Trump account: $2,500
- Monthly commuter benefit (transit or highway vehicle): $340
- Monthly qualified parking: $340
Miscellaneous Business-Related Limits
- Section 199A qualified business income deduction phase-in range: $201,750 – $276,750 (double for joint filers)
- Excess business loss limitation threshold: $256,000 (double for joint filers) — reduced from 2025
- Cash method of accounting limitation: $32 million (also impacts other tax items, including exemption from the 30% interest expense deduction limit)
Planning Ahead for 2026
These updated figures can significantly affect your tax strategy. We can help you incorporate these changes into your 2026 planning. Contact us today to get started.