2026 Tax Changes Every Small Business Owner Should Know
Overview of tax law updates affecting US small business in 2026
Every year brings tax, payroll, and compliance changes. Miss an update and you could overpay, underpay, or miss a filing deadline. Here are the 2026 Tax Changes Every Small Business Owner Should Know updates every small business owner should know.
Key changes at a glance
- Section 179 limit raised to $1.22M (from $1.16M)
- Bonus depreciation reduced to 40% (from 60%)
- Standard mileage rate: 67¢/mile (up from 65.5¢)
- SEP IRA contribution limit: $70,000 (from $69,000)
- Solo 401(k) limit: $70,000 + $7,500 catch-up if 50+
- FICA Social Security wage base: $176,100 (from $168,600)
- FUTA wage base unchanged at $7,000/employee
- Estate tax exemption: $13.99M (unified credit change)
- QBI phase-out thresholds adjusted for inflation
What this means for your business
If you're running a small business in the US or Canada, these changes likely affect you in one or more of these ways:
1. Payroll adjustments — wage bases, minimum wages, and contribution limits change annually
2. Tax planning — deductions, credits, and brackets shift what you owe
3. Retirement planning — contribution limits determine how much you can save tax-advantaged
4. Compliance deadlines — some deadlines shift based on legislation
Action items
1. Update your payroll software or provider with new rates
2. Adjust employee withholding if they've submitted new W-4s
3. Review your tax plan with your CPA for new opportunities
4. Check state-level changes — many don't adopt federal changes automatically
How TinSuite keeps you current
TinSuite automatically updates:
- Federal and state withholding tables
- Mileage rates
- Contribution limits in our retirement plan integrations
- Sales tax rates across all 51 US states + 13 Canadian provinces
You don't have to remember which law changed when — your software handles it.