By Rebecca McElroy, CPA and Jennifer Youngblood, CPA, MTA

Many high-net-worth individuals are asking the same question this year: What are the most effective strategies for minimizing my tax liability? With new provisions under the One Big Beautiful Bill Act and shifts coming in 2026, the tax landscape is evolving fast.

From permanent top tax rates and expanded estate exemptions to new limits on deductions and updated planning opportunities, these changes are reshaping how income, investments, and wealth transfer strategies interact. Understanding these updates is key to avoiding surprises and optimizing long-term planning.

Implementing Effective Tax Strategies

By Rebecca McElroy, CPA and Jennifer Youngblood, CPA, MTA

For high-net-worth individuals, the perennial question—“What are the most effective strategies for minimizing my tax liability?”—takes on new complexity next year. The evolving tax code, investment returns, and estate planning rules have introduced new variables beginning in 2026. Owing tax often highlights how key regulatory shifts and income events intersect.

Key Shifts Impacting Tax Liability:

Permanence of Top Income and Estate Tax Rates

The “One Big Beautiful Bill Act” (OBBBA) solidified several favorable provisions from the Tax Cuts and Jobs Act (TCJA). The top marginal federal income tax rate for individuals is now permanently set at 37%, rather than reverting to the higher pre-2018 rate. Federal estate and gift tax exemptions have also been permanently increased to $15 million per person ($30 million for married couples), providing a broader shield for multigenerational wealth and legacy planning.

Changes to Deductions for High Earners (2026)

While the permanence of lower rates may bring some stability, the OBBBA introduces other limitations:

• The benefit of itemized deductions is now capped at 35% for those in the highest bracket (37%). 
• Charitable deduction benefits face ceilings for top earners, changing prior assumptions about strategy and timing of large gifts.
• The State and Local Tax (SALT) deduction cap has been raised to $40,000, but the deduction phases out for those with incomes above $500,000. 

Multiyear Wealth Transfer & Planning Opportunities

Multiple planning avenues are shifting:

• For estates and gifts, the higher exemption allows for accelerated generational transfers and philanthropic strategies—now with less risk of post-2025 “clawbacks.” 
• The 20% qualified business income (QBI) deduction for pass-throughs and REITs is now permanent, offering sustained benefits for business owners and investors.
• 100% Bonus Depreciation was reinstated for qualifying property acquired after January 19, 2025, potentially accelerating deductions on capital investments. 

Practical Strategies and Planning Takeaways

In the wake of realized gains, business income, or major life events, owing tax this year may be the outcome of a highly dynamic tax climate. For high-net-worth individuals, the paradigm has shifted:

• Annual and multiyear planning can optimize new deduction phaseouts, wealth transfer thresholds, or bonus depreciation. 
• Charitable giving, estate planning, and even the basic review of W-4 and estimated payment schedules must be recalibrated to reflect the 2025 reality. 

2025 brought specific changes for high net worth families, and other shifts will take effect 2026. At MTA, our focus is to partner with our clients to decode these shifts to avoid surprises.