Tax strategy in 2026 isn’t about chasing one clever deduction. Some rules shift, some fundamentals stay the same, but the risk comes from assuming nothing matters until year-end. Getting ahead now is what keeps you in control when the numbers start moving, and these are some of the best ways you can do it.
Get Your S Corporation Dialed In
If you’re a profitable small business owner and your S corporation isn’t set up correctly, you’re probably overpaying self employment tax every single year.
This strategy isn’t new, and that’s the point. The S corp still works because it allows you to split income between a reasonable salary and distributions. When done right, that reduces payroll tax exposure and keeps more money in your pocket.
Where people mess this up is execution. Salary too high kills the benefit. Salary too low creates audit risk. In 2026, the move isn’t finding a new loophole. It’s tightening the one you already have and making sure it’s working.
Use QBI While It’s Available
The Qualified Business Income deduction is still alive and well in 2026, and it’s one of the easiest deductions business owners miss or misuse.
For eligible pass-through businesses, QBI can knock up to 20% off taxable income before you even get into advanced planning. There’s no fancy paperwork or exotic structure required, but there are income limits, phase-outs, and industry rules that matter.
This deduction rewards owners who keep their entities clean and compliant. If your books are sloppy or your structure is wrong, QBI won’t save you. When it’s layered on top of a properly run S corp or LLC, it becomes a meaningful boost instead of a missed opportunity.
Pair Business Income With Rental Real Estate
If you want tax savings that don’t disappear after April 15, rental real estate still belongs in the conversation.
Depreciation, cost segregation, and rental losses continue to be some of the most reliable tools for offsetting business income when used correctly. This doesn’t mean quitting your business to become a landlord. It means owning assets that create cash flow while producing paper losses.
Short-term rentals, long-term rentals, and self-rentals all play differently, but the theme is the same. Business owners who pair operating income with real estate flexibility tend to keep more money working for them instead of sending it to the IRS.
Lock In Health Savings Account Benefits
Health Savings Accounts are about to matter a lot more for business owners in 2026, and most people haven’t caught it yet.
Starting this year, all Marketplace Bronze health plans qualify as HSA-eligible plans. That’s a meaningful shift. In past years, Bronze plans were a minefield of technical rules that disqualified many people without them realizing it.
An HSA is one of the few tools left with a true triple tax advantage. Contributions are deductible. The account grows tax deferred. Qualified medical withdrawals are tax free. For business owners who already max out retirement options, this becomes a clean secondary strategy.
Just make sure you don’t rely on AI tools, the IRS hotline, or a guess from your accountant to determine whether a plan qualifies. The insurance company is the source of truth. If a plan is HSA-eligible, it will be clearly labeled, but verification still matters.
This isn’t a flashy strategy. It’s a boring one. And sometimes boring is where the biggest long-term tax wins live.
Be Strategic With Auto Loan Interest Deductions
Yes, there’s been a lot of buzz about the personal auto loan interest deduction tied to U.S.-assembled vehicles. And yes, it can help in very specific situations.
But here’s the truth that you shouldn’t gloss over.
If you’re already using a vehicle for business, interest has been deductible proportionally for years. That part isn’t new. The new rule mainly impacts personal vehicles, and even then, it comes with income limits and phase outs.
Reliable transportation matters. Safety matters. Predictable cash flow matters. Tax deductions should support decisions you were already comfortable making, not justify debt you didn’t need. If the numbers work, the deduction is a bonus. If they don’t, the deduction won’t save you.
The Bottom Line
Tax strategy in 2026 isn’t about headlines. The business owners who win aren’t chasing every new idea. They’re consistently applying the right ones year after year, before the window closes.
If you want clarity on how these strategies fit your situation, now is the time to get it mapped out. Waiting until the numbers are final is how options disappear.
