2026 Tax Changes: What DFW Taxpayers Need to Know

New year, new tax rules. And this year, there are some changes worth knowing about—whether you're a W-2 employee in Dallas, a small business owner in Plano, or a real estate investor anywhere in DFW.

Here's what actually matters for 2026 (and what you can skip worrying about).

Key Tax Bracket Changes for 2026

The IRS has adjusted tax brackets for inflation, which means you may pay slightly less in taxes even if your income stays the same.

2026 Federal Income Tax Brackets (Single Filers)

Tax Rate	Income Range
10%	$0 - $11,925
12%	$11,926 - $48,475
22%	$48,476 - $103,350
24%	$103,351 - $197,300
32%	$197,301 - $250,525
35%	$250,526 - $626,350
37%	Over $626,350

2026 Federal Income Tax Brackets (Married Filing Jointly)

Tax Rate	Income Range
10%	$0 - $23,850
12%	$23,851 - $96,950
22%	$96,951 - $206,700
24%	$206,701 - $394,600
32%	$394,601 - $501,050
35%	$501,051 - $751,600
37%	Over $751,600

What this means for DFW taxpayers: If you earned the same income as last year, the bracket adjustments could result in modest tax savings. The key is ensuring you're taking advantage of all available deductions and credits.

Standard Deduction Increases

Good news for those who don't itemize: the standard deduction has increased again for 2026.

Filing Status	2026 Standard Deduction
Single	$15,000
Married Filing Jointly	$30,000
Head of Household	$22,500

For Texas residents: Since Texas has no state income tax, these federal changes directly impact your bottom line. Many DFW taxpayers find that the increased standard deduction eliminates the need to itemize—but that's not always the right strategy.

Pro Tip: Even if the standard deduction exceeds your itemized deductions, itemizing might still benefit you if you have significant state and local taxes, mortgage interest, or charitable contributions. Work with a CPA to run the numbers both ways.

Changes Affecting DFW Real Estate Investors

If you own rental properties in Dallas, Fort Worth, or surrounding areas, pay attention to these updates:

1. SALT Deduction Cap Remains

The $10,000 cap on state and local tax (SALT) deductions remains in place for 2026. While Texas doesn't have income tax, this affects property tax deductions—a significant consideration for DFW homeowners with valuable properties.

2. Bonus Depreciation Phase-Down Continues

Bonus depreciation continues its scheduled reduction:

Year	Bonus Depreciation Rate
2026	40%
2027	20%
2028+	0%

What this means for DFW investors: If you're planning to purchase investment property or conduct major renovations, 2026 still offers substantial depreciation benefits—but they're disappearing fast. A cost segregation study can help you maximize deductions while bonus depreciation remains available.

3. Qualified Business Income (QBI) Deduction

The 20% QBI deduction for pass-through entities (LLCs, S-Corps, partnerships) continues for 2026. This is particularly valuable for DFW small business owners and real estate investors who structure their holdings properly.

Small Business Tax Updates

Dallas-Fort Worth's thriving business community should note these changes:

Increased Section 179 Limit

The Section 179 expensing limit has increased to $1,220,000 for 2026, with a phase-out threshold of $3,050,000. This allows small businesses to deduct the full cost of qualifying equipment purchases in the year of purchase.

Employee Retention Credit (ERC) Update

The IRS continues to process—and audit—ERC claims. If you claimed the ERC in previous years, ensure your documentation is in order. If you believe you were eligible but didn't claim it, the window to file amended returns is closing.

Retirement Plan Contribution Limits

Plan Type	2026 Limit
401(k) Employee Contribution	$23,500
401(k) Catch-Up (50+)	$7,500
SEP-IRA	$69,000
SIMPLE IRA	$16,500

For DFW business owners: Maximizing retirement contributions is one of the most effective tax reduction strategies. If you're self-employed, a SEP-IRA or Solo 401(k) can shelter significant income from taxes.

Electric Vehicle Tax Credits

Considering an EV in 2026? The clean vehicle tax credit continues:

• New EVs: Up to $7,500 credit
• Used EVs: Up to $4,000 credit
• Income limits apply (MAGI of $150,000 single, $300,000 married)

The credit is now available as a point-of-sale discount at participating dealers, making it easier for DFW car buyers to benefit immediately.

Home Energy Credits

Texas homeowners investing in energy efficiency can benefit from:

• Energy Efficient Home Improvement Credit: 30% of costs up to $1,200 annually for insulation, windows, doors, and $2,000 for heat pumps
• Residential Clean Energy Credit: 30% of costs for solar panels, solar water heaters, and battery storage (no cap)

Given Texas summers, these credits can offset the cost of energy-efficient upgrades while reducing your utility bills.

Tax Filing Deadlines for 2026

Mark your calendar for these important dates:

Deadline	Description
January 15, 2026	Q4 2025 estimated tax payment due
January 31, 2026	Employers issue W-2s and 1099s
April 15, 2026	Individual tax returns due (or extension)
April 15, 2026	Q1 2026 estimated tax payment due
June 16, 2026	Q2 2026 estimated tax payment due
September 15, 2026	Q3 2026 estimated tax payment due
October 15, 2026	Extended individual returns due

What DFW Taxpayers Should Do Now

1. Gather Your Documents

Start collecting W-2s, 1099s, and receipts now. The sooner you have everything organized, the sooner you can file—and the sooner you'll receive any refund.

2. Review Last Year's Return

Look for missed deductions or credits. Common oversights include:

• Home office deduction (for self-employed)
• Student loan interest
• Health savings account (HSA) contributions
• Educator expenses
• Energy credits

3. Consider Your Filing Strategy

With the standard deduction at $15,000 (single) or $30,000 (married), many taxpayers benefit from not itemizing. However, if you have significant mortgage interest, property taxes, or charitable contributions, itemizing may still save you money.

4. Plan Ahead for 2026

Don't wait until next year to think about 2026 taxes. Strategic planning now—including retirement contributions, estimated tax payments, and business structure decisions—can significantly reduce your future tax liability.

The Bottom Line

Tax laws change every year. The people who pay the least aren't just filing returns—they're planning ahead.

If you haven't reviewed your 2026 tax situation yet, now's the time. The sooner you plan, the more options you have.

Questions about how these changes affect your situation? Let's talk →

— Krystal Le, CPA

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LeCPA provides tax planning and accounting services for individuals and businesses across Plano, Richardson, Carrollton, Frisco, and Dallas.