Pay Bill
Sharefile
Facebook Linkedin

Important 2026 tax figures for businesses

By /

A new year brings many new tax-related figures for businesses. Here’s an overview of key figures for 2026. Be aware that exceptions or additional rules or 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
  • 401(k), 403(b) and 457 plan catch-up contributions for those age 50 or older: $8,000
  • 401(k), 403(b) and 457 plan additional catch-up contributions for those age 60, 61, 62 or 63: $3,250
  • SIMPLE deferrals: $17,000
  • SIMPLE catch-up contributions for those age 50 or older: $4,000
  • SIMPLE additional catch-up contributions for those age 60, 61, 62 or 63: $1,250
  • Contributions to defined contribution plans: $72,000
  • Annual benefit limit for defined benefit plans: $290,000
  • Compensation defining highly compensated employee: $160,000
  • Compensation defining key employee (officer) in a top-heavy plan: $235,000
  • Compensation triggering Simplified Employee Pension contribution requirement: $800

Other benefits limits

  • Health Savings Account (HSA) contributions: $4,400 for individuals, $8,750 for family coverage
  • Health Flexible Spending Account (FSA) contributions: $3,400
  • Health FSA rollover: $680
  • Child and dependent care FSA contributions: $7,500
  • Employer contributions to Trump account: $2,500
  • Monthly commuter highway vehicle and transit pass: $340
  • Monthly qualified parking: $340

Miscellaneous business-related limits

  • Income range over which the Section 199A qualified business income deduction limitations phase in: $201,750 – $276,750 (double those amounts for married couples filing jointly)
  • Threshold for the excess business loss limitation: $256,000 (double that amount for joint filers) — note that this is a reduction from 2025
  • Limitation on the use of the cash method of accounting: $32 million (also affects other tax items, such as the exemption from the 30% interest expense deduction limit)

Planning for 2026

We can help you factor these changes and others into your 2026 tax planning. Contact us to get started.

© 2025


Scroll to Top

CONGRATULATIONS

SHIRLEY COSTOPOULOS

FOR

35 years!!!

We are honored to celebrate Shirley Costopoulos today and her remarkable 35 years with us! Shirley is not only an exceptional employee, but also a valued colleague and a true friend. She is deeply caring and committed to both her coworkers and the clients she serves. Shirley consistently goes above and beyond to ensure that everyone is well taken care of. Her vast knowledge, unwavering dedication, and exemplary work ethic set a standard that is truly unparalleled. Those who have the privilege of working with Shirley are fortunate to benefit from her expertise, professionalism, and genuine care.