A new year brings many new tax-related figures for businesses, and below, we provide an overview of key figures for 2026. However, please 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