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

First, the big one: the TCJA tax rates were supposed to expire after 2025 — and they didn't. The One Big Beautiful Bill Act (OBBBA, signed July 2025) made the current rate structure permanent. No jump to 15% and 25% brackets, no halved standard deduction.

On top of that, the IRS adjusted the brackets for inflation (Rev. Proc. 2025-32), with an extra bump for the bottom two brackets. That 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 - $12,400
12%	$12,401 - $50,400
22%	$50,401 - $105,700
24%	$105,701 - $201,775
32%	$201,776 - $256,225
35%	$256,226 - $640,600
37%	Over $640,600

2026 Federal Income Tax Brackets (Married Filing Jointly)

Tax Rate	Income Range
10%	$0 - $24,800
12%	$24,801 - $100,800
22%	$100,801 - $211,400
24%	$211,401 - $403,550
32%	$403,551 - $512,450
35%	$512,451 - $768,700
37%	Over $768,700

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. See your 2026 tax brackets →

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	$16,100
Married Filing Jointly	$32,200
Head of Household	$24,150

And if you're 65 or older, the OBBBA added a temporary bonus deduction of up to $6,000 per person (2025–2028), on top of the regular additional deduction for seniors. Income limits apply.

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 Quadrupled

Here's a change that matters for DFW homeowners with high property taxes: the OBBBA raised the SALT deduction cap from $10,000 to $40,400 for 2026. While Texas doesn't have income tax, property taxes count toward SALT — and with DFW property values where they are, plenty of homeowners were hitting the old $10,000 ceiling. One catch: the higher cap phases back down for households with income above roughly $505,000, and it's scheduled to revert to $10,000 in 2030.

2. 100% Bonus Depreciation Is Back — Permanently

The old phase-down schedule (40% in 2026, 20% in 2027, then gone) is history. The OBBBA permanently restored 100% bonus depreciation for qualifying property placed in service after January 19, 2025.

What this means for DFW investors: If you're purchasing investment property or doing major renovations, you can once again write off the full cost of qualifying components in year one. Model your depreciation → A cost segregation study is how you unlock that deduction on a rental property.

3. Qualified Business Income (QBI) Deduction — Now Permanent

The 20% QBI deduction for pass-through entities (LLCs, S-Corps, partnerships) was scheduled to expire after 2025. The OBBBA made it permanent. 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 OBBBA doubled the Section 179 expensing limit to $2.5 million (indexed to $2,560,000 for 2026), with the phase-out beginning at $4,090,000 of equipment purchases. This allows small businesses to deduct the full cost of qualifying equipment purchases in the year of purchase.

New Deductions for Tips and Overtime

Through 2028, workers can deduct up to $25,000 of qualified tip income and up to $12,500 ($25,000 married) of overtime premium pay from federal income tax. If you're in the service industry anywhere in DFW — or you employ people who are — this changes withholding and planning math. We break down exactly who qualifies (including the official occupation list and the new W-2 codes) in our full guide to the tips and overtime deductions.

Other New Personal Deductions Worth Knowing

The OBBBA created several more deductions you can claim on top of the standard deduction — each with its own fine print:

• Car loan interest — up to $10,000/year on new, US-assembled personal vehicles. See which vehicles qualify →
• Charitable gifts for non-itemizers — up to $1,000 ($2,000 married) in cash gifts starting in 2026, while itemizers face a new 0.5% AGI floor. How to give smarter under the new rules →
• Trump Accounts — launched July 2026 with a free $1,000 for eligible newborns. Should you open one for your kid? →

And if you freelance or run a side hustle, the 1099 paperwork rules changed too — the 1099-K threshold is back to $20,000 and the 1099-NEC threshold rose to $2,000. What that means for your reporting →

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	$24,500
401(k) Catch-Up (50+)	$8,000
IRA	$7,500
SEP-IRA / Solo 401(k)	$72,000
SIMPLE IRA	$17,000

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.

EV and Home Energy Credits Are Gone

This one stings if you were counting on them: the OBBBA terminated the clean vehicle credits (up to $7,500 new / $4,000 used) for purchases after September 30, 2025, and ended the home energy credits — the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit — for expenditures after December 31, 2025.

If you bought an EV or installed solar in 2025, you can still claim those credits on your 2025 return. For 2026 purchases, there's no federal credit — factor that into the math before a dealer or solar installer tells you otherwise. There's one partial consolation: through 2028, you can deduct up to $10,000 of interest on a loan for a new, US-assembled personal vehicle (income limits apply).

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 15, 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 $16,100 (single) or $32,200 (married), many taxpayers benefit from not itemizing. However, with the SALT cap now at $40,400, DFW homeowners with significant property taxes, mortgage interest, or charitable contributions should run the numbers both ways — itemizing beats the standard deduction more often than it did last year.

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

Sources:

• IRS Rev. Proc. 2025-32 — 2026 inflation adjustments
• IRS: 2026 tax inflation adjustments, including OBBBA amendments
• IRS Notice 2025-67 — 2026 retirement plan limits
• IRS: One Big Beautiful Bill Act provisions

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