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Key Business Tax Figures to Keep in Mind for 2026
A new year brings many new tax-related figures for businesses.
Keep these key 2026 business tax figures in mind as you prepare for the year ahead. Note, exceptions or additional rules or limits may apply.
| Category | 2026 Figures | |
|---|---|---|
| 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 benefit 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.
