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Important 2026 Tax Figures for Businesses

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Reviewed by Vince Tomei, Partner | EFPR Advisory, LLC
Published January, 2026

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.

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