I’m a Financial Planner: Here’s How To Prepare for the New Tax Rules in 2026
Written by
Sean Bryant
Edited by
Jenna Klaverweiden
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Last year, many taxpayers were preparing for higher taxes if key provisions of the Tax Cuts and Jobs Act of 2017 were allowed to expire. However, with the passage of the One Big Beautiful Bill Act, many of those cuts were extended. The new law also introduced additional tax changes that taxpayers will need to understand and plan for this year.
No matter whether you still need to file your taxes in 2026 or whether you’re already preparing for 2027, here are a few things to consider.
Reevaluate Whether the Standard Deduction Makes Sense
When the Tax Cuts and Jobs Act was passed, the standard deduction was increased to help more taxpayers avoid the need to itemize deductions on their tax return. However, the One Big Beautiful Bill has updated certain deductions, making it necessary to evaluate whether itemizing would make more sense for your situation.
“Many of the new provisions only apply if you itemize, and several are subject to income phaseouts,” said Madeleine Batson, CPA and CFP at Aprio. “Without a reasonable estimate of adjusted gross income, individuals risk assuming a deduction applies when it may not.”
Another change that could have a big impact is the state and local tax deduction. “The expanded $40,000 State and Local Tax (SALT) deduction for those living in high-tax states is a significant change. This will push more taxpayers into itemizing, making it essential to track deductions that may not have mattered in prior years under the standard deduction,” Batson said.
Don’t Run Out and Buy a New Car
New cars purchased between 2025 and 2028 may be eligible for a tax deduction of up to $10,000 on loan interest. While this is available to both itemizing and non-itemizing taxpayers, the deduction phases out for single filers with an adjusted gross income over $100,000 (or $200,000 for those married filing jointly).
However, even with this deduction available, it doesn’t mean you should go out and buy a car just to take advantage of it.
“The new auto loan interest deduction may apply, but it should not be the reason to go buy a new car,” Batson said. “Always make decisions from the perspective of your financial plan. A dollar spent to generate a tax deduction still reduces net worth. Tax decisions should be guided by a broader financial plan and not done in isolation.”
Understand Where You’re Likely To Land Financially
Being prepared for tax season means more than collecting your tax documents and passing them along to your accountant. It means having visibility into where your finances might be at year-end. Are you a retiree who will be collecting Social Security or withdrawing from a tax-deferred account? Will you be selling investments from a taxable account? These actions can increase your income, pushing you into new tax brackets.
“A mid-year tax estimate, which might not be necessary in a stable year, can be worthwhile in this evolving tax environment to help make informed decisions before the year is over,” Batson said.
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