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As 2026 draws to a close, now is the time to look beyond simply preparing your tax return and start planning for the tax return you will file in 2027.

The tax law continues to provide opportunities for individuals and families to reduce their tax liability, improve retirement savings, manage capital gains, and make charitable contributions more tax-efficient. Several provisions affecting 2026 were changed or expanded by the One Big Beautiful Bill Act, while other familiar year-end strategies remain just as important.

Here are several areas to review before December 31, 2026.

1. Review Your Income and Tax Bracket

One of the first steps in year-end planning is estimating your 2026 taxable income.

For 2026, the federal income tax rates remain at 10%, 12%, 22%, 24%, 32%, 35% and 37%. For married couples filing jointly, the 24% bracket, for example, applies to taxable income between $211,400 and $403,550. The 32% bracket begins at $403,550, while the 37% bracket begins at $768,700.

Understanding where you fall within the brackets can help determine whether it makes sense to:

• Accelerate income into 2026
• Defer income into 2027
• Realize capital gains or losses
• Make additional retirement contributions
• Consider a Roth conversion
• Increase charitable contributions
• Adjust tax withholding or estimated tax payments

Remember that moving into a higher tax bracket does not mean all of your income is taxed at the higher rate. The federal income tax system is progressive, meaning only the income within the higher bracket is taxed at that rate.

2. Take Another Look at Your Itemized Deductions

The 2026 standard deduction is $32,200 for married couples filing jointly, $16,100 for single taxpayers, and $24,150 for heads of household. If you are age 65 or older and/or blind, you get an additional standard deduction amount based on your filing status.

If your potential itemized deductions are close to the standard deduction, year-end planning can become particularly important.

Consider whether you have significant:

• State and local taxes
• Mortgage interest
• Charitable contributions
• Medical expenses that may qualify
• Other deductible expenses

The goal isn't necessarily to maximize deductions at all costs. Instead, look at your overall tax situation and determine whether accelerating or delaying certain deductions could provide a greater tax benefit.

3. Consider "Bunching" Charitable Contributions

Beginning in 2026, taxpayers who do not itemize may generally deduct up to $1,000 of qualifying cash charitable contributions ($2,000 for married couples filing jointly).

For taxpayers who itemize, charitable giving continues to be an important year-end planning opportunity.

One strategy to consider is bunching charitable contributions. Instead of contributing the same amount every year, a taxpayer may make several years' worth of charitable contributions in a single year in order to increase itemized deductions for that year.

For individuals with appreciated investments, donating appreciated securities directly to a qualified charity may also provide tax advantages compared with selling the investment and donating cash. The rules can be complex, so this strategy should be reviewed before making the contribution.

4. Review Your Retirement Contributions

Retirement plans remain one of the most effective ways to combine tax planning with long-term financial planning.

For 2026, the employee contribution limit for most 401(k), 403(b), and governmental 457 plans is $24,500. Individuals age 50 and older generally have an additional $8,000 catch-up contribution, while individuals ages 60 through 63 may be eligible for a higher catch-up limit of $11,250.

The 2026 IRA contribution limit is $7,500, with an additional $1,100 catch-up contribution for individuals age 50 and older.

If you haven't maximized your retirement contributions, review your remaining contribution capacity before the end of the year.

For business owners and self-employed individuals, additional retirement planning opportunities may exist through SEP-IRAs, SIMPLE IRAs, solo 401(k)s and other retirement plans.

5. Evaluate Roth Conversions

A Roth conversion can be an important year-end planning strategy for taxpayers who have traditional IRA or retirement plan assets.

With a Roth conversion, money is moved from a traditional retirement account into a Roth account, generally creating taxable income in the year of the conversion.

The key question is whether paying tax today may make sense in light of your current and anticipated future tax situation.

A Roth conversion may be particularly worth examining when:

• Your income is unusually low in 2026
• You have significant deductions that offset additional taxable income
• You recently retired
• You expect your future tax rate to be higher
• You want to reduce future required minimum distributions
• You want to leave Roth assets to heirs

Roth conversions should be calculated rather than done automatically. Converting too much can push additional income into higher tax brackets or affect other tax benefits.

6. Harvest Capital Losses — and Review Capital Gains

Investment portfolios should receive a year-end tax review as well.

If you have investments with unrealized losses, selling those investments may allow you to use the losses to offset capital gains. Depending on your circumstances, up to $3,000 of net capital loss may generally be used against ordinary income, with unused losses carried forward.

At the same time, investors should review investments with significant unrealized gains.

It may make sense to realize gains in 2026, particularly if your overall income and tax bracket make the current year attractive for doing so. Conversely, deferring a gain may make sense in other circumstances.

Be sure to consider the wash-sale rules before selling securities at a loss and repurchasing substantially identical securities.

7. Review Your Withholding and Estimated Tax Payments

A tax planning meeting isn't complete without looking at whether you are paying enough — or too much — throughout the year.

Review your:

• Federal withholding
• State withholding
• Estimated tax payments
• Investment income
• Retirement distributions
• Business income
• Capital gains
• Other sources of taxable income

A taxpayer who has experienced a major change in income during 2026 shouldn't simply rely on last year's withholding.

The IRS specifically recommends using the prior year's return as a starting point while accounting for changes affecting the current year.

8. Don't Forget Required Minimum Distributions

If you are required to take a required minimum distribution (RMD) from an IRA or retirement plan, make sure it is completed before the applicable deadline.

An RMD can have consequences beyond simply generating taxable income. It can affect your tax bracket, Medicare-related income thresholds, taxation of Social Security benefits and the amount of additional income you can recognize through a Roth conversion.

If you are charitably inclined and are eligible to make a qualified charitable distribution (QCD) from an IRA, consider whether directing part of your RMD to charity may fit into your overall tax and charitable strategy.

9. Consider a Qualified Charitable Distribution

For individuals who are eligible, a QCD allows funds to be transferred directly from an IRA to a qualified charity.

The distribution can potentially satisfy all or part of an individual's RMD while keeping the distributed amount out of adjusted gross income, subject to the applicable rules and limitations.

This can be particularly valuable for retirees who:

• Are already taking RMDs
• Make regular charitable contributions
• Do not need all of their retirement distributions for living expenses

Because the transaction must meet specific requirements, make sure the IRA custodian processes the distribution correctly.

10. Review Gifts to Family Members

The 2026 annual gift tax exclusion is $19,000 per recipient.

For example, an individual may generally make annual exclusion gifts to multiple family members without using any of the donor's lifetime gift and estate tax exemption, assuming the requirements are met.

Married couples may also have additional planning opportunities, including gift splitting, but the rules should be reviewed before making significant gifts.

Year-end is a good time to review gifts already made during the year and determine whether additional gifting makes sense as part of your broader estate plan.

11. Business Owners Should Review Their Compensation and Retirement Plans

If you own a business, your year-end tax planning should go beyond your personal return.

Consider reviewing:

• Year-end bonuses
• Retirement plan contributions
• Equipment and other business purchases
• Depreciation opportunities
• Estimated tax payments
• Qualified business income
• Health insurance
• Entity structure
• Business income and expenses

The timing of income and deductions can be particularly important for business owners because the tax consequences may extend beyond the current year.

12. Don't Wait Until December 31

One of the biggest mistakes taxpayers make is waiting until after December 31 to begin tax planning.

Many of the most valuable planning decisions need to be made before the year ends.

For example:

• Investment sales must generally occur before year-end to affect 2026 capital gains and losses.
• Charitable contributions generally need to be completed by December 31 to qualify for a 2026 deduction.
• Retirement plan salary deferrals generally must be made during the applicable plan year.
• Roth conversions must generally be completed by December 31 to be included in the current tax year.

Some contributions and retirement planning opportunities have deadlines after December 31, so it's important to distinguish between strategies that must be completed before year-end and those that can be completed later.

The Bottom Line

Year-end tax planning isn't simply about finding deductions. The objective is to look at your entire financial picture and make informed decisions about income, investments, retirement accounts, charitable giving and estate planning.

Every taxpayer's situation is different. A strategy that saves taxes for one person could create additional taxes or other unintended consequences for another.

With 2026 tax rules and limits now established, September through December is an excellent time to review your projected 2026 tax return and identify opportunities before the calendar year ends.

Don't wait until tax season to start planning. By December, many of the most important tax-planning opportunities may already be behind you.