Plan Ahead, Save Smart: What Kansans Should Know About the 2026 Tax Brackets

As 2025 winds down, the IRS has released its 2026 income tax bracket and inflation adjustments. While they might look like routine numbers, they carry meaningful planning opportunities for both Kansas business owners and individual taxpayers.

For most people, these updates quietly shape how much of your income is taxed, how much you can deduct, and how effectively you can plan compensation, bonuses, and investments in the year ahead.

2026 Tax Brackets: Small Shifts, Big Planning Power

For tax year 2026, the IRS has adjusted income tax brackets and standard deductions upward to account for inflation.

This could mean:

• Slightly lower effective tax rates on the same income level.
• Higher standard deductions for individuals, married couples, and heads of household.
• More flexibility to manage owner pay, retirement contributions, and charitable giving before crossing into higher brackets.

These changes create opportunities to plan your 2026 tax strategy now, while you still have time to act.

For Business Owners

As your company grows, these updated thresholds can shape decisions around compensation, reinvestment, and cash flow:

• Owner Compensation and Distributions: Adjust 2026 pay and draws to stay in your optimal bracket and align with your growth targets.
• Entity Review: If your business has expanded, revisit whether your current structure (S-Corp, partnership, or multi-entity setup) still fits your financial goals.
• Tax Projections: Higher thresholds create room to invest in growth or award bonuses without triggering higher effective rates.

The takeaway: don’t wait until tax season to plan your taxes. The smartest tax savings come from designing compensation and investment strategies before December 31.

For Individuals and Families

If you’re a high-earning professional, retiree, or dual-income household, the 2026 adjustments can influence your long-term financial plans:

• Charitable Giving: Schedule major donations in higher-income years to maximize itemized deductions.
• Retirement Contributions: Use bracket increases to increase pre-tax savings and keep taxable income in check.
• Capital Gains Planning: If you’re selling investments or property, coordinate timing around your projected 2026 bracket.
• Withholding Adjustments: Update your W-4 or estimated payments to reflect new thresholds and avoid surprises at filing time.

In short, understanding your bracket now means fewer surprises later and more control over what stays in your pocket.

Why This Matters

Tax bracket adjustments may seem routine, but they’re powerful tools for strategic timing and long-term wealth management. 

For Kansas business owners and families, they shape:

• How much cash you can safely reinvest.
• When to take income versus distributions.
• How to balance tax efficiency with personal goals.

These small, intentional decisions add up to meaningful savings, and they start with understanding the landscape before it changes.

How CGP Helps You Turn Numbers Into Strategy

At CGP Group, we combine Strategic Tax Advisory with Financial Operations planning to make sure our clients aren’t reacting to tax law changes, they’re ready for them.

We’ll help you:

• Model how 2026 brackets affect your salary, distributions, and estimated payments.
• Align your personal and business strategies for year-round clarity.
• Identify opportunities for reinvestment, charitable giving, and long-term savings.

What to Do Next

Schedule a Year-End Strategy Review.
We’ll walk through your 2026 projections and identify smart adjustments before deadlines hit.

Review Your Compensation Mix.
Fine-tune salary, draws, and distributions to stay in your target bracket.

Update Your Long-Term Plan.
Align personal and business goals under the 2026 thresholds so every dollar has a purpose.

Ready to turn 2026 tax changes into opportunity?
Contact CGP Group to plan ahead and move into the new year with confidence and clarity.