Most ways to lower your 2026 tax close on December 31. Use this checklist to see what applies to you, then talk with us about the details.
Individuals
- Check withholding and estimates. Compare what you have paid with your projected tax. The final federal and California estimated payment is due January 15, 2027.
- Max out retirement contributions. 401(k) contributions must go through payroll by year end.
- Plan charitable gifts. Gifts of appreciated stock avoid capital gains tax.
- Take required minimum distributions if you are required to.
Business owners
- Time equipment purchases. Equipment must be placed in service by December 31 to be deducted for 2026.
- Review S corporation salary before the final payroll of the year.
- Collect W-9s now so 1099s are ready for the February 1, 2027 deadline.
Rental property owners
- Finish improvements before year end if you want depreciation to start in 2026, and gather receipts for repairs. See the rental property guide.
Book a year-end planning review.
By Artin Shahmirzaian, EA. General information only; not advice for your specific situation.