Deadlines at a glance
| Move | Deadline | 2026 limit |
|---|---|---|
| 401(k), 403(b) contributions | December 31 | $24,500, plus $8,000 from age 50 ($11,250 at ages 60 to 63) |
| Spend your health FSA | December 31 | Up to $680 can carry over, if your plan allows |
| Charity gifts | December 31 | See below |
| Sell investments (gains and losses) | December 31 | Losses offset gains, then up to $3,000 of other income |
| Gifts to family | December 31 | $19,000 per person with no gift tax return |
| Required minimum distributions | December 31 | Your first one can wait until April 1 of the next year |
| IRA contributions | April 15, 2027 | $7,500, plus $1,100 from age 50 |
| HSA contributions | April 15, 2027 | $4,400 for yourself, $8,750 for a family, plus $1,000 from age 55 |
- Your full HSA, through payroll $4,400 × 22% income tax + 7.65% FICA
- $1,305
- $5,000 more in your 401(k) $5,000 × 22%
- $1,100
- $3,000 of investment losses Taken off other income × 22%
- $660
- $1,000 to charity Without itemizing, × 22%
- $220
State income tax savings come on top in most states. 401(k) contributions don’t save Social Security and Medicare tax; HSA contributions through payroll do.
1. Put more into your 401(k)
Contributions only count for 2026 if they come out of a 2026 paycheck, so ask your employer to raise your contribution for your last few paychecks. Traditional contributions cut your tax now: each extra $1,000 saves $220 in the 22% bracket.
If you earned over $150,000 from your employer in 2025, your catch-up contributions (from age 50) must go in as Roth. See Roth vs traditional.
2. Use the new deductions
These started in 2025 and you can claim them whether or not you itemize:
| Deduction | Most you can deduct | Shrinks above (single / joint) |
|---|---|---|
| Tips | $25,000 | $150,000 / $300,000 |
| Overtime (the extra half) | $12,500 ($25,000 joint) | $150,000 / $300,000 |
| Age 65 and over | $6,000 per person | $75,000 / $150,000 |
| Car loan interest | $10,000 | $100,000 / $200,000 |
Car loan interest counts only on a loan taken out after 2024 for a new car, SUV, van, pickup or motorcycle that had its final assembly in the US and is mainly for personal use. The deduction shrinks by $200 for every $1,000 of income over the limit, so it’s gone at $150,000 ($250,000 joint). Keep your loan statement: lenders report the interest you paid.
More on tips and overtime: no tax on tips and overtime.
3. Give to charity the new way
From 2026:
- If you don’t itemize (most people), you can deduct cash gifts to charities of up to $1,000, or $2,000 for a married couple filing jointly. Gifts to donor-advised funds don’t count.
- If you itemize, only gifts above 0.5% of your income count. On $100,000, the first $500 of gifts isn’t deductible.
- In the 37% bracket, each dollar given saves at most 35 cents of tax.
Not sure whether you’ll itemize? Our standard vs itemized deduction calculator shows which is better, and whether giving two years of donations at once would help.
Keep a receipt for every gift. From age 70½ you can give straight from an IRA to charity (a qualified charitable distribution): it counts towards your required minimum distribution and isn’t taxed.
4. Sell investments with care
Outside retirement accounts, selling before December 31 changes your 2026 tax. Our capital gains tax calculator shows what a sale or a loss does to yours.
- Losses cancel out gains, then up to $3,000 of other income ($1,500 if married filing separately). Anything left carries forward to future years.
- Don’t buy the same investment back within 30 days, or the loss doesn’t count (the wash sale rule).
- Gains on investments held over a year are taxed at 0% if your taxable income stays in the lowest band:
| Rate on long-term gains | Single | Married filing jointly |
|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 |
| 15% | $49,451 to $545,500 | $98,901 to $613,700 |
| 20% | Over $545,500 | Over $613,700 |
5. Check the state and local tax cap
If you itemize, you can deduct up to $40,400 of state and local taxes in 2026 ($20,200 if married filing separately). The cap shrinks by 30% of your income over $505,000, but never below $10,000. If you’re under the cap and your county lets you pay next year’s property tax bill early, paying by December 31 can move the deduction into 2026.
6. Use your FSA, and plan your HSA
A health FSA is use-it-or-lose-it: spend it on eligible costs by December 31, unless your plan lets you carry over up to $680 or gives you a grace period. HSA money never expires, and you can add to it for 2026 until April 15, 2027. See HSAs explained.
7. Take required minimum distributions
From age 73 (75 if you were born in 1960 or later), you must take a minimum amount from traditional IRAs and 401(k)s each year by December 31. Missing it means a 25% penalty on the amount you should have taken, cut to 10% if you correct it quickly. Our RMD calculator works out yours. Converting to a Roth by December 31 is another way to lower future RMDs; the Roth conversion calculator shows the tax.
8. Check your withholding
If you’ll owe tax, raising your withholding for your last paychecks counts as if you’d paid evenly through the year. If you’re heading for a big refund, lower it for 2027. The tax refund calculator estimates where you stand, and the W-4 calculator shows what to change on your W-4.
Looking ahead to 2027
The IRS sets next year’s brackets and limits each fall. Our 2027 tax brackets guide has the figures.