IRS 2026 Inflation Adjustments: Practical Tax Planning Notes
Every year the IRS publishes inflation adjustments that affect brackets, deductions, exemptions, and other items. These updates matter because they change how much income is taxed and how much you can deduct — especially for small business owners planning quarterly estimates or deciding between standard vs. itemized deductions.
What the IRS published for tax year 2026
For tax year 2026, the IRS released inflation adjustments (including updates reflecting recent legislation). The official newsroom release provides the updated standard deduction amounts and other key thresholds.
- IRS newsroom: 2026 inflation adjustments (Oct 9, 2025): irs.gov
- Revenue Procedure 2025‑32 (PDF): irs.gov
Why this matters for small businesses and individuals
- Withholding and estimates. Adjusted thresholds can change how much you should set aside for taxes.
- Year‑end planning. If you’re buying equipment or timing income/expenses, updated thresholds can affect strategy.
- Clean bookkeeping. Planning is only as good as your numbers.
Early‑2026 “what to do” checklist
- Confirm your tax year assumptions. Don’t rely on last year’s brackets/deductions.
- Update your forecast. If revenue changed, update estimated taxes accordingly.
- Make sure your books are tax‑ready. Reconciled accounts and clean categories make filing straightforward.
How we can help (U.S. + Washington / Seattle)
Financial Stream LLC supports clients remotely across the U.S. (and we’re based near the Seattle area in Washington). If you want help preparing for filing season, see:
Bottom line
Inflation adjustments don’t require panic — they require alignment. Use the official IRS thresholds for 2026, keep your books clean, and make small planning decisions early so filing is easier later.